WEC Energy Group, Inc. Fundamental Analysis (NYSE: WEC)
WEC Energy Group, Inc. (NYSE: WEC) shows moderate financial fundamentals with a PE ratio of 20.61, profit margin of 17.55%, and ROE of 8.56%. The company generates $10.3B in annual revenue with strong year-over-year growth of 13.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WEC's fundamental strength across five key dimensions:
Efficiency Score
WeakWEC struggles to generate sufficient returns from assets.
Valuation Score
ModerateWEC shows balanced valuation metrics.
Growth Score
ModerateWEC shows steady but slowing expansion.
Financial Health Score
ModerateWEC shows balanced financial health with some risks.
Profitability Score
ModerateWEC maintains healthy but balanced margins.
Key Financial Metrics
Is WEC Expensive or Cheap?
P/E Ratio
WEC trades at 20.61 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WEC's PEG of 4.77 indicates potential overvaluation.
Price to Book
The market values WEC Energy Group, Inc. at 0.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.92 times EBITDA. This is generally considered low.
How Well Does WEC Make Money?
Net Profit Margin
For every $100 in sales, WEC Energy Group, Inc. keeps $17.55 as profit after all expenses.
Operating Margin
Core operations generate 24.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.56 in profit for every $100 of shareholder equity.
ROA
WEC Energy Group, Inc. generates $3.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
WEC Energy Group, Inc. generates strong operating cash flow of $3.80B, reflecting robust business health.
Free Cash Flow
WEC Energy Group, Inc. generates strong free cash flow of $2.50B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.68 in free cash annually.
FCF Yield
WEC converts 6.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How WEC Stacks Against Its Sector Peers
| Metric | WEC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.61 | 19.21 | Neutral |
| ROE | 8.56% | 1000.00% | Weak |
| Net Margin | 17.55% | -520.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 1.77 | Strong (Low Leverage) |
| Current Ratio | 0.48 | 1.85 | Weak Liquidity |
| ROA | 3.36% | 527.00% | Weak |
WEC outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews WEC Energy Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.17%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
25.76%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
49.16%
Industry Style: Defensive, Dividend, Income
High Growth