WEC Energy Group (WEC) AI Stock Analysis

• Market Cap: $33.52B
• Dividend Yield: 3.13%
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.17
• Revenue Growth: -3.30%
• EPS Growth: 14.40%
• Country: US
• Employees: 7,000
• Sector: Utilities
• Sector Strength: 79
• Industry: Regulated Utilities
• EPS (TTM): 4.83
• Shares Outstanding: 317,752,140
• 10 Day Avg. Volume: 2,423,200
• 30 Day Avg. Volume: 2,403,219
• PEG Ratio: 1.52
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.00
• Price to Cash Flow (P/CF): 14.80
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $102.68
• Price Target Upside: -2.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

WEC Energy Group demonstrates a robust financial performance with a strong capital plan and consistent dividend growth. While the stock shows positive momentum, technical indicators suggest caution due to overbought conditions. Valuation metrics indicate the stock is fairly valued, providing a reasonable yield for investors. The company's solid earnings call reinforces its growth prospects, though some regulatory and project-related challenges exist.

Positive Factors

Growth Strategy

Strong demand growth in Wisconsin and a robust capital spending plan support WEC's future performance.

Regulatory Environment

The constructive outcome in the recently completed Wisconsin rate case contributes to a more favorable regulatory environment for WEC.

Negative Factors

Valuation

WEC shares are currently trading at a 5-6% premium compared to peers, which may limit further valuation growth despite strong execution and regulatory successes.

WEC Energy Group Business Overview & Revenue Model

Company Description

WEC Energy Group (WEC) is a leading energy company serving approximately 4.6 million customers across Wisconsin, Illinois, Michigan, and Minnesota. Operating in the utilities sector, WEC Energy Group specializes in electricity and natural gas distribution, providing reliable energy services through its subsidiaries, including We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, and Minnesota Energy Resources. The company is committed to delivering safe and sustainable energy solutions to its diverse customer base while investing in infrastructure and technology to enhance service reliability and efficiency.

How the Company Makes Money

WEC Energy Group makes money primarily through the generation, distribution, and sale of electricity and natural gas. The company's revenue streams are largely derived from regulated utility operations, where it charges customers based on their energy consumption. These rates are set and approved by state regulatory commissions, ensuring a stable and predictable income. Additionally, WEC Energy Group invests in infrastructure projects, such as renewable energy initiatives, which can provide long-term cost savings and potential tax incentives. The company's earnings are also supported by strategic partnerships and acquisitions that expand its service territory and customer base, further enhancing its revenue-generating capabilities.

WEC Energy Group Financial Statement Overview

Summary

WEC Energy Group maintains a strong financial position, with stable profitability and efficient operations. The company faces challenges with revenue growth and free cash flow stability, but overall, it is well-positioned in the regulated utilities sector.

Income Statement

WEC Energy Group shows a stable financial performance with a strong gross profit margin of 44.0% and a solid net profit margin of 17.7% in 2024, indicating efficient cost management and profitability. The revenue growth rate shows fluctuations, with a decline of 3.3% from 2023 to 2024, but overall, the company remains profitable with consistent EBIT and EBITDA margins.

Balance Sheet

The balance sheet reflects a sound financial position with a debt-to-equity ratio of 1.62, which is manageable within the utilities sector. Return on equity stands at 12.3%, showing good returns for shareholders. The equity ratio of 26.2% indicates a stable capital structure, though there is room for improvement in reducing leverage.

Cash Flow

WEC Energy Group demonstrates healthy operating cash flows with an operating cash flow to net income ratio of 2.11, highlighting strong cash generation relative to profits. However, free cash flow shows volatility, with a negative growth rate over the years, reflecting high capital expenditures typical for the industry.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.60B	8.89B	9.60B	8.32B	7.24B
	Gross Profit
3.79B	3.60B	3.30B	3.00B	2.89B
	EBIT
2.15B	1.91B	1.92B	1.71B	1.71B
	EBITDA
3.52B	3.53B	3.15B	2.86B	2.72B
	Net Income Common Stockholders
1.52B	1.33B	1.41B	1.30B	1.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.80M	42.90M	28.90M	16.30M	24.80M
	Total Assets
47.36B	43.94B	41.87B	38.99B	37.03B
	Total Debt
20.02B	18.80B	17.29B	15.59B	14.29B
	Net Debt
20.01B	18.75B	17.27B	15.57B	14.27B
	Total Liabilities
34.56B	31.87B	30.26B	27.88B	26.37B
	Stockholders Equity
12.39B	11.75B	11.41B	10.94B	10.50B
Cash Flow		Free Cash Flow
430.70M	525.50M	-273.40M	-220.10M	-42.80M
	Operating Cash Flow
3.21B	3.02B	2.06B	2.03B	2.20B
	Investing Cash Flow
-3.80B	-3.56B	-2.64B	-2.31B	-2.81B
	Financing Cash Flow
467.70M	522.80M	676.40M	294.00M	601.10M

WEC Energy Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEC, the sentiment is Positive. The current price of 105.5 is above the 20-day moving average (MA) of 103.29, above the 50-day MA of 98.45, and above the 200-day MA of 90.94, indicating a bullish trend. The MACD of 2.31 indicates Negative momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 78.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEC.

WEC Energy Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUK	77 Outperform	$90.39B	20.48	9.03%	3.50%	4.46%	54.09%
SO	77 Outperform	$99.64B	22.75	13.25%	3.17%	5.83%	10.23%
WEC	74 Outperform	$33.52B	21.86	12.30%	3.13%	-3.30%	14.40%
AEP	73 Outperform	$56.12B	18.85	73.81%	3.36%	2.76%	31.53%
EXC	72 Outperform	$43.91B	17.81	9.14%	3.46%	5.98%	4.99%
NEE	67 Neutral	$145.74B	21.00	9.07%	2.95%	26.91%	-6.43%
Sector *	65 Neutral	$12.05B	15.92	6.71%	4.32%	8.04%	3.76%

WEC Energy Group Corporate Events

WEC Energy Group Highlights Strategic Growth Plans

In March 2025, WEC Energy Group announced its participation in upcoming investor meetings, highlighting its consistent financial performance and strategic growth plans. The company has demonstrated robust earnings and dividend growth, with a 6.9% increase in dividends for 2025 and a strong focus on infrastructure investments, including a $28 billion capital plan for 2025-2029. Additionally, the Illinois Commerce Commission lifted a pause on the Safety Modernization Program, directing Peoples Gas to replace certain pipelines by 2035, which WEC is evaluating for its operational impact.

WEC Energy Group Announces Major Dividend Increase

WEC Energy Group has announced a significant increase in its dividend by 6.9% to an annual rate of $3.57 per share, marking the 22nd consecutive year of dividend growth. The company is included in the S&P’s High Yield Dividend Aristocrats Index for its strong performance. Additionally, WEC Energy has outlined its largest five-year capital plan in company history, totaling $28 billion from 2025-2029, aiming to support robust regional growth, particularly around Milwaukee and the Chicago corridor, with increased electric demand forecasted to add 1,800 MW by 2029.

WEC Energy Announces Dividend Increase and Expansion Plans

WEC Energy Group plans to increase its dividend by 6.9% to $3.57 per share, marking the 22nd consecutive year of dividend growth. The company is also expanding its five-year capital plan by $4.3 billion, focusing on regulated renewables and natural gas generation, and aims to eliminate coal as an energy source by 2032, indicating significant strategic growth and sustainability initiatives.

WEC Energy Group Reports Strong Growth and Future Plans

WEC Energy Group is showcasing robust growth in its asset base and strong financial performance, maintaining a remarkable 20-year streak of exceeding earnings guidance. The company plans to raise its dividend by 6.9% in 2025, continuing its tradition of rewarding shareholders. With a focus on renewable energy, WEC is investing an additional $4.3 billion over the next five years, highlighting major projects like regulated renewables and LNG capacity, while planning to eliminate coal by 2032.

WEC Energy Group Sets New Performance Incentives for 2025

WEC Energy Group has set performance measures for its 2025 incentive compensation plans, focusing on earnings per share and cash flow targets, with potential adjustments based on customer satisfaction, safety, and diversity metrics. The company’s performance unit awards will be evaluated against total shareholder return and return on equity compared to peers, with stock price to earnings ratio potentially boosting awards. These measures aim to align executive incentives with financial and operational success.