WEC Energy Group (WEC) AI Stock Analysis

• Market Cap: $37.45B
• Dividend Yield: 3.38%
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.08
• Revenue Growth: 11.88%
• EPS Growth: 29.76%
• Country: US
• Employees: 7,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.42
• Shares Outstanding: 325,531,370
• 10 Day Avg. Volume: 2,298,298
• 30 Day Avg. Volume: 2,468,341
• PEG Ratio: 21.18
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 3.50
• P/FCF Ratio: -33.69
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 6.17
• Enterprise Value/Gross Profit: 12.21
• Enterprise Value/Ebitda: 14.95
• 1Y Price Target: $122.61
• Price Target Upside: 6.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 5.59
• Revenue Forecast (FY): $9.87B

• Rating: 69 Neutral
• Price Target: $128.00 ▲(11.26% Upside)
• Action: Downgraded Date: 03/03/26
• Date: Action: Downgraded 03/03/26

The score is driven by stable core regulated profitability but held back by weak free-cash-flow consistency and leverage/financing needs. Technicals are supportive with strong trend strength, though momentum looks overbought. Valuation is somewhat expensive for the sector, partially balanced by the dividend yield, while the earnings call was a net positive due to reaffirmed guidance and a stronger demand-driven growth runway.

Positive Factors

Regulated Earnings Stability

WEC's core regulated utility model produces steady ROE and reliable margin structure. That predictability reduces revenue cyclicality, supports multi-year planning, underpins dividend policy and helps absorb capital spending, making earnings and cash flows more durable over time.

Large, Contracted Demand & Capital Plan

Material, long‑duration data center load commitments expand rate base and create predictable, high‑utilization demand for generation and distribution. This supports the multi‑year $37.5B capex program, drives rate‑base growth, and underpins management's 7%–8% EPS CAGR outlook.

Durable Dividend Policy

A long track record of consecutive raises and an explicit 65%–70% payout target signal management prioritizes consistent shareholder returns. For income investors this reflects durable regulated cash generation and disciplined capital allocation despite heavy ongoing capex.

Negative Factors

High Leverage History

Sustained higher leverage reduces financial flexibility and increases sensitivity to rising interest costs. In a capital‑intensive utility, elevated debt raises refinancing risk, limits buffer for rate delays or regulatory refunds, and can increase borrowing costs during large funding programs.

Volatile / Negative Free Cash Flow

Persistent negative or inconsistent FCF reflects heavy capex and timing mismatches that limit self‑funding. Over time this forces reliance on external financing, pressures FFO metrics, and constrains the company's ability to deleverage or accelerate renewables/gas investments without dilutive equity or incremental debt.

Large Near‑term Financing Needs

Substantial 2026 funding requirements increase execution and market risk; frequent access to debt and equity markets can raise interest costs and dilution. Combined with regulatory timing uncertainty and customer affordability debates, financing needs could pressure credit metrics and capital allocation choices.

WEC Energy Group Business Overview & Revenue Model

Company Description

WEC Energy Group, Inc., through its subsidiaries, provides regulated natural gas and electricity, and renewable and nonregulated renewable energy services in the United States. The company operates through six segments: Wisconsin, Illinois, Other States, Electric Transmission, Non-Utility Energy Infrastructure, and Corporate and Other. It generates and distributes electricity from coal, natural gas, oil, hydroelectric, wind, solar, and biomass sources; provides electric transmission services; offers retail natural gas distribution services; transports natural gas; and generates, distributes, and sells steam. As of December 31, 2021, it operated approximately 35,800 miles of overhead distribution lines and 35,600 miles of underground distribution cables, as well as 440 electric distribution substations and 510,500 line transformers; 50,900 miles of natural gas distribution mains; 1,200 miles of natural gas transmission mains; 2.3 million natural gas lateral services; 500 natural gas distribution and transmission gate stations; and 68.2 billion cubic feet of working gas capacities in underground natural gas storage fields. The company was formerly known as Wisconsin Energy Corporation and changed its name to WEC Energy Group, Inc. in June 2015. WEC Energy Group, Inc. was incorporated in 1981 and is headquartered in Milwaukee, Wisconsin.

How the Company Makes Money

WEC Energy Group generates revenue primarily through the provision of utility services, including electric and natural gas sales to residential, commercial, and industrial customers. The company earns money by charging customers based on consumption rates, which are regulated by state utility commissions. Additionally, WEC has significant revenue streams from infrastructure investments, where it expands its utility networks and renewable energy generation capabilities. The company also benefits from long-term power purchase agreements and partnerships with renewable energy developers, which provide stable income from energy sales. Regulatory mechanisms, such as rate cases and cost recovery processes, further enhance its ability to generate earnings consistently.

WEC Energy Group Financial Statement Overview

Summary

Stable regulated profitability and steady ROE support fundamentals, but historically high leverage and frequently negative/volatile free cash flow (including a large deficit in 2025) reduce the financial strength score.

Income Statement

Revenue has been relatively stable with a return to growth in 2025 (+2.6% vs. 2024), after softness in 2023–2024. Profitability is solid and consistent for a regulated utility, with net margin holding in the mid-teens and 2025 earnings slightly higher than 2024. A notable strength is the steady improvement in gross profitability from 2022 through 2025. The main weakness is that top-line growth has been uneven over the last several years, limiting the pace of earnings expansion.

Balance Sheet

Leverage looks high in most years (debt-to-equity roughly ~1.4–1.6 from 2020–2024), which is a key risk factor if rates stay elevated or capital spending rises. Equity has grown steadily over time, and returns on equity are stable around ~11–12%, supporting the view of a durable regulated earnings base. 2025 shows unusually low leverage versus prior years, but given the sharp year-over-year change, it reads as less consistent with the longer trend and reduces confidence in the balance-sheet improvement being structural.

Cash Flow

Operating cash flow is steady and has improved since 2022, which supports dividend capacity and ongoing investment needs. However, free cash flow is volatile and frequently negative (notably 2020–2022 and again 2025), indicating heavy capital spending and/or timing headwinds that pressure self-funding. While 2024 produced positive free cash flow, the reversal to a large deficit in 2025 and generally modest cash generation versus earnings are the key weaknesses.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.80B	8.60B	8.89B	9.60B	8.32B
Gross Profit	4.95B	3.79B	3.60B	3.30B	3.00B
EBITDA	4.05B	3.92B	3.53B	3.37B	3.04B
Net Income	1.56B	1.53B	1.33B	1.41B	1.30B
Balance Sheet
Total Assets	51.52B	47.36B	43.94B	41.87B	38.99B
Cash, Cash Equivalents and Short-Term Investments	27.60M	9.80M	42.90M	28.90M	16.30M
Total Debt	22.31B	20.33B	18.80B	17.37B	15.59B
Total Liabilities	37.47B	34.56B	31.87B	30.26B	27.88B
Stockholders Equity	13.64B	12.43B	11.75B	11.41B	10.94B
Cash Flow
Free Cash Flow	-1.02B	430.70M	525.50M	-254.20M	-220.10M
Operating Cash Flow	3.38B	3.21B	3.02B	2.06B	2.03B
Investing Cash Flow	-4.87B	-3.80B	-3.56B	-2.64B	-2.31B
Financing Cash Flow	1.52B	467.70M	522.80M	676.40M	294.00M

WEC Energy Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 115.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 115.05 is below the 20-day moving average (MA) of 115.35, above the 50-day MA of 110.86, and above the 200-day MA of 107.96, indicating a neutral trend. The MACD of 1.09 indicates Positive momentum. The RSI at 54.89 is Neutral, neither overbought nor oversold. The STOCH value of 22.43 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
WEC	69 Neutral	$37.45B	22.02	11.65%	3.38%	11.88%	29.76%
AEE	67 Neutral	$30.41B	18.55	11.48%	2.86%	22.71%	22.86%
ED	67 Neutral	$40.87B	17.55	8.43%	3.44%	10.35%	7.64%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ETR	64 Neutral	$47.35B	23.04	10.76%	2.64%	6.71%	-0.12%
DTE	62 Neutral	$30.68B	18.26	12.16%	3.45%	19.42%	-9.68%
PCG	57 Neutral	$39.72B	13.06	8.55%	0.66%	-0.27%	-7.65%

WEC Energy Group Corporate Events

WEC Energy Highlights Data Center-Driven Growth Outlook

WEC Energy Group used its March 2026 investor presentation to highlight its earnings and dividend growth track record, ongoing dividend policy and expanding capital plan as it meets with investors. The company reiterated a robust long‑term earnings outlook based on a 2025 adjusted EPS midpoint of $5.22, while signaling continued dividend growth of 6.5% to 7% annually and positioning itself as a premier energy provider in the U.S. Midwest.

A key regulatory development is a proposed settlement in Illinois, where Peoples Gas and North Shore Gas have agreed with the Illinois Attorney General on terms that would resolve 12 open dockets totaling about $2.3 billion, excluding carry costs. The settlement, which requires Illinois Commerce Commission approval, includes a $130 million rate base reduction and $125 million in customer cash credits over three years related to infrastructure and uncollectible expense riders.

In January 2026, Peoples Gas and North Shore Gas also filed new rate review applications with Illinois regulators seeking higher allowed returns on equity and equity ratios, which would translate into base rate increases of roughly $201 million and $12.7 million, respectively. If approved, the typical Peoples Gas residential customer would see an estimated bill increase of $10 to $11 per month starting Jan. 1, 2027, though the company emphasized that Chicago’s winter heating bills are expected to remain among the lowest in major U.S. cities.

The presentation underscored accelerating demand from large-scale data center customers along the I‑94 corridor between Milwaukee and Chicago, notably Microsoft’s expansion that lifts forecasted regional demand to 2.6 GW through 2030. Microsoft’s more than $20 billion data center program in Mount Pleasant, where Phase 1 operations are expected to start in 2026, is projected to drive about $1 billion of incremental WEC investment and raise its five‑year capital plan to $37.5 billion.

WEC also pointed to another major growth engine in Wisconsin, where Vantage Data Centers plans a Port Washington campus tied to the OpenAI and Oracle “Stargate” initiative, adding 1.3 GW of forecast demand through 2030. With site potential up to 3.5 GW over time and thousands of construction and permanent jobs, these projects underpin WEC’s forecast that its Wisconsin segment will add 3.9 GW of electric demand from 2026 to 2030 and achieve weather‑normalized electric sales growth of 6% to 8% annually from 2028 to 2030.

The most recent analyst rating on (WEC) stock is a Buy with a $127.00 price target. To see the full list of analyst forecasts on WEC Energy Group stock, see the WEC Stock Forecast page.

WEC Energy Group Expands 2028 Senior Notes Offering

On February 23, 2026, WEC Energy Group, Inc. entered into an underwriting agreement to issue and sell an additional $400 million of its 4.75% Senior Notes due January 15, 2028, in a registered offering under an existing shelf registration. These Additional 2028 Notes form part of the same series as the $450 million of 4.75% Senior Notes issued on January 11, 2023, bringing the total outstanding for this debt series to $850 million and further bolstering the company’s access to long-term capital for its utility operations and investment needs.

The expanded 2028 Notes issuance underscores WEC Energy Group’s continued reliance on the debt capital markets to finance its regulated energy infrastructure, potentially affecting its leverage profile and interest costs over the medium term. For bond investors and other stakeholders, the larger, consolidated note series may enhance liquidity and pricing transparency in the company’s 2028 maturity, while signaling confidence in its ability to manage obligations through predictable utility cash flows.

The most recent analyst rating on (WEC) stock is a Buy with a $127.50 price target. To see the full list of analyst forecasts on WEC Energy Group stock, see the WEC Stock Forecast page.

WEC Energy Highlights Dividend Growth and Midwest Demand Surge

WEC Energy Group is updating investors in February 2026 on its continued earnings and dividend growth trajectory and its expanding role as a key power provider in the upper Midwest. The company highlighted 22 consecutive years of meeting or exceeding the top end of earnings guidance on an adjusted basis, a long-term robust EPS growth outlook anchored to 2025 guidance of $5.22 per share, and its 23rd straight annual dividend increase, with the dividend raised 6.7% in January 2026 to an annual rate of $3.81 per share and targeted to grow 6.5%–7% with a payout ratio of 65%–70%. Operationally, WEC detailed a proposed settlement in Illinois that would resolve 12 open regulatory dockets for Peoples Gas and North Shore Gas—covering infrastructure and uncollectible expense riders for 2017–2023—through a combination of rate base reductions and $125 million in customer credits, subject to Illinois Commerce Commission approval. In January 2026, its Illinois gas utilities also filed new rate review applications seeking higher allowed returns on equity and equity ratios, with orders expected in late 2026 and new rates effective Jan. 1, 2027. For growth, WEC emphasized surging long-term electric demand along the I‑94 corridor from Milwaukee to Chicago, driven by large data center investments, including Microsoft’s expanded plan that lifts forecast demand in the corridor to 2.6 GW through 2030 and adds about $1 billion to WEC’s capital plan, now totaling $37.5 billion over five years. Additional large-scale projects such as Vantage Data Centers’ planned $15+ billion campus in Port Washington, tied to OpenAI and Oracle’s Stargate initiative, support WEC’s forecast of adding 3.9 GW of electric demand between 2026 and 2030 and strong projected electric sales growth of 6%–8% annually in Wisconsin from 2028–2030, reinforcing its growth profile and long-term infrastructure investment runway.

The most recent analyst rating on (WEC) stock is a Buy with a $121.00 price target. To see the full list of analyst forecasts on WEC Energy Group stock, see the WEC Stock Forecast page.

WEC Energy Group Illinois Utilities File New Rate Cases

On Jan. 5, 2026, WEC Energy Group’s Illinois natural gas utilities, The Peoples Gas Light and Coke Company and North Shore Gas Company, filed rate cases with the Illinois Commerce Commission seeking new base rates effective Jan. 1, 2027. The filings include proposed increases in allowed return on equity to 10.10% and higher equity ratios of 54%, supporting forecast 2027 rate bases of $4.678 billion for Peoples Gas and $449 million for North Shore Gas, and corresponding proposed base rate increases of $202.2 million and $14.4 million, respectively. If approved, the company estimates the typical Peoples Gas residential customer would see bills rise by roughly $10 to $11 per month, though it expects Chicago home heating costs to remain below those in other major U.S. cities, underscoring the company’s strategy to strengthen returns and fund infrastructure and growth while managing customer affordability in a region seeing robust long-term energy demand, including large new data center loads along the Milwaukee–Chicago corridor.

The most recent analyst rating on (WEC) stock is a Hold with a $116.00 price target. To see the full list of analyst forecasts on WEC Energy Group stock, see the WEC Stock Forecast page.

WEC Energy Group Plans Dividend Increase for 2026

WEC Energy Group announced plans to raise its quarterly dividend to 95.25 cents per share for the first quarter of 2026, marking the 23rd consecutive year of dividend increases. The company is also focusing on significant regional growth, with major investments in data centers along the Milwaukee to Chicago corridor and in Port Washington, which are expected to create thousands of jobs. Additionally, WEC Energy Group has outlined a robust capital plan for 2026-2030, with $8.5 billion in additional investments compared to the previous five-year plan, focusing on natural gas generation, regulated renewables, and electric distribution.

The most recent analyst rating on (WEC) stock is a Sell with a $106.00 price target. To see the full list of analyst forecasts on WEC Energy Group stock, see the WEC Stock Forecast page.

WEC Energy Group Sets 2026 Executive Performance Measures

On December 4, 2025, WEC Energy Group‘s Compensation Committee established performance measures for the 2026 Short-Term Performance Plan, focusing on financial achievements such as earnings per share and cash flow. The plan also considers operational and social performance areas, impacting incentive awards for executives. Additionally, the 2026 Performance Unit Awards will be based on total shareholder return and return on equity, with potential adjustments based on stock price to earnings ratio, reflecting WEC Energy’s commitment to aligning executive incentives with shareholder interests.

The most recent analyst rating on (WEC) stock is a Sell with a $106.00 price target. To see the full list of analyst forecasts on WEC Energy Group stock, see the WEC Stock Forecast page.