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WEC Energy Group Inc (WEC)
NYSE:WEC

WEC Energy Group (WEC) AI Stock Analysis

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WEC Energy Group

(NYSE:WEC)

Rating:77Outperform
Price Target:
$119.00
▲( 12.81% Upside)
WEC Energy Group is well-positioned with strong financial performance and strategic growth initiatives. The company's solid revenue growth and profitability, coupled with a robust capital investment plan, contribute positively. While technical analysis indicates mixed short-term trends, the company's stable valuation and attractive dividend yield provide reassurance. Earnings call insights and recent corporate events underscore a positive long-term outlook, despite some near-term challenges such as tariff impacts.
Positive Factors
Capital Expenditure
The construction at Microsoft's Mt. Pleasant site is well underway, and the scale of Phase 1 is impressive, indicating a significant capex opportunity for WEC.
Growth Opportunities
Cloverleaf's acquisition of 2,000 acres in Port Washington for a potential 3.5 GW data center complex presents a substantial growth opportunity for WEC.
Regulatory Environment
The constructive outcome in the recently completed Wisconsin rate case contributes to a more favorable regulatory environment for WEC.
Negative Factors
Market Valuation
The stock is trading at a 5-6% premium to peers, suggesting it may be fairly valued at current levels.
Regulatory Challenges
Regulatory proceedings in Illinois continue to be challenging, though they have a diminishing impact on WEC's overall results.
Valuation Concerns
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 (WEC) vs. SPDR S&P 500 ETF (SPY)

WEC Energy Group Business Overview & Revenue Model

Company DescriptionWEC 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 MoneyWEC 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 exhibits resilience in managing costs and generating healthy cash flows, although revenue growth and free cash flow stability pose some challenges.
Income Statement
80
Positive
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
75
Positive
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
70
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
8.60B8.89B9.60B8.32B7.24B
Gross Profit
3.79B3.60B3.30B3.00B2.89B
EBIT
2.15B1.91B1.92B1.71B1.71B
EBITDA
3.92B3.53B3.15B2.86B2.72B
Net Income Common Stockholders
1.53B1.33B1.41B1.30B1.20B
Balance SheetCash, Cash Equivalents and Short-Term Investments
9.80M42.90M28.90M16.30M24.80M
Total Assets
47.36B43.94B41.87B38.99B37.03B
Total Debt
20.02B18.80B17.29B15.59B14.29B
Net Debt
20.01B18.75B17.27B15.57B14.27B
Total Liabilities
34.56B31.87B30.26B27.88B26.37B
Stockholders Equity
12.43B11.75B11.41B10.94B10.50B
Cash FlowFree Cash Flow
430.70M525.50M-273.40M-220.10M-42.80M
Operating Cash Flow
3.21B3.02B2.06B2.03B2.20B
Investing Cash Flow
-3.80B-3.56B-2.64B-2.31B-2.81B
Financing Cash Flow
467.70M522.80M676.40M294.00M601.10M

WEC Energy Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price105.49
Price Trends
50DMA
106.25
Negative
100DMA
102.66
Positive
200DMA
97.92
Positive
Market Momentum
MACD
-0.11
Positive
RSI
47.17
Neutral
STOCH
73.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEC, the sentiment is Neutral. The current price of 105.49 is below the 20-day moving average (MA) of 106.65, below the 50-day MA of 106.25, and above the 200-day MA of 97.92, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 47.17 is Neutral, neither overbought nor oversold. The STOCH value of 73.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WEC.

WEC Energy Group Risk Analysis

WEC Energy Group disclosed 31 risk factors in its most recent earnings report. WEC Energy Group reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Adoption of AI technologies could adversely affect our business, reputation, or financial results. Q4, 2024

WEC Energy Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
WEWEC
77
Outperform
$34.33B21.0012.96%3.19%4.42%11.98%
ETETR
73
Outperform
$36.33B27.368.96%2.82%-0.84%-37.59%
DTDTE
72
Outperform
$27.94B18.1813.28%3.10%11.16%20.94%
PCPCG
68
Neutral
$37.40B15.658.55%0.40%1.91%-4.40%
XEXEL
66
Neutral
$41.71B21.3210.26%3.16%-0.44%2.14%
63
Neutral
$8.47B10.314.67%4.37%4.05%-12.96%
EDED
61
Neutral
$37.26B19.098.33%3.17%8.52%3.91%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WEC
WEC Energy Group
106.78
28.88
37.07%
ED
Consolidated Edison
103.42
12.16
13.32%
DTE
DTE Energy
134.62
25.48
23.35%
ETR
Entergy
81.28
28.06
52.72%
PCG
PG&E
17.05
-1.34
-7.29%
XEL
Xcel Energy
69.21
17.35
33.46%

WEC Energy Group Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -2.11%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start to the fiscal year with robust financial performance, significant economic development in Wisconsin, and a large capital investment plan. However, challenges such as tariff impacts and uncertainties in the Illinois pipeline program pose potential risks.
Q1-2025 Updates
Positive Updates
Strong Earnings Performance
The company reported first quarter 2025 earnings of $2.27 per share, reflecting a $0.30 increase compared to the first quarter of 2024.
Robust Economic Development in Wisconsin
Significant economic development is occurring along the I-94 corridor between Milwaukee and Chicago, including Microsoft's data center complex and Eli Lilly's $3 billion manufacturing facility.
Largest Investment Plan in History
The company is executing its largest five-year investment plan, totaling $28 billion dedicated to economic growth and reliability.
Solar and Renewable Projects Progress
The Darien solar project added 225 megawatts of renewable generation, and two more solar projects are under construction expected to be completed next year.
Dividend Increase
The Board increased the dividend by 6.9%, marking the 22nd consecutive year of dividend increases for shareholders.
Negative Updates
Tariff Impacts on Capital Plan
The company is evaluating the impacts of tariffs on its supply chain and capital plan, with an estimated tariff exposure of approximately 2% to 3% overall.
Uncertainty in Illinois Pipeline Program
The Illinois pipeline safety modernization program requires significant capital investment, with potential delays in ramping up to full capacity.
Weather-Driven Earnings Variability
Earnings were positively impacted by $0.18 due to weather, highlighting sensitivity to weather conditions.
Company Guidance
During WEC Energy Group's first quarter 2025 results conference call, the company reaffirmed its 2025 earnings guidance of $5.17 to $5.27 per share, assuming normal weather conditions for the remainder of the year. The company expects a long-term compound annual growth rate of 5% to 7%, supported by a $28 billion capital plan dedicated to economic growth and reliability. WEC Energy Group highlighted significant projects, including the Darien solar project, which adds 225 megawatts of renewable generation, and two other solar projects expected to come online next year. The company is also seeking to mitigate tariff impacts on its supply chain, estimating a 2% to 3% exposure within its capital plan. Additionally, the proposed very large customer (VLC) tariff in Wisconsin aims to meet the needs of large load customers with a fixed return on equity of 10.48% and an equity ratio of 57%. Earnings for the first quarter of 2025 were reported at $2.27 per share, reflecting a $0.30 increase from the first quarter of 2024.

WEC Energy Group Corporate Events

Business Operations and StrategyFinancial Disclosures
WEC Energy Group Highlights Strategic Initiatives at Investor Meetings
Positive
May 16, 2025

WEC Energy Group announced its participation in upcoming investor meetings, highlighting its robust financial performance and strategic initiatives. The company has consistently met or exceeded earnings guidance for over two decades and continues to demonstrate strong dividend growth. A new tariff for very large customers in Wisconsin aims to balance the needs of major clients like Microsoft with those of other stakeholders, potentially impacting future rate cases and energy infrastructure investments.

The most recent analyst rating on (WEC) stock is a Hold with a $97.00 price target. To see the full list of analyst forecasts on WEC Energy Group stock, see the WEC Stock Forecast page.

Shareholder Meetings
WEC Energy Group Approves Key Proposals at Annual Meeting
Neutral
May 13, 2025

At the annual meeting held on May 8, 2025, WEC Energy Group‘s stockholders voted on several proposals. Thirteen directors were elected for terms expiring in 2026, and Deloitte & Touche LLP was ratified as the independent auditor for 2025. Additionally, proposals to eliminate supermajority voting requirements in the company’s articles of incorporation and bylaws were approved, although a stockholder proposal to support a simple majority vote was not passed.

The most recent analyst rating on (WEC) stock is a Hold with a $97.00 price target. To see the full list of analyst forecasts on WEC Energy Group stock, see the WEC Stock Forecast page.

Executive/Board Changes
WEC Energy Group Appoints New Executive Vice President
Neutral
May 12, 2025

On May 8, 2025, WEC Energy Group‘s Board of Directors appointed Michael Hooper as Executive Vice President and Chief Operating Officer, effective May 11, 2025. Hooper will continue as President of Wisconsin Utilities and take on additional roles as President of Michigan Gas Utilities Corporation and Minnesota Energy Resources Corporation. His compensation package was adjusted to reflect his new responsibilities. Additionally, Curt Culver retired from his director position on May 8, 2025, and received accelerated vesting of his restricted stock in recognition of his service.

The most recent analyst rating on (WEC) stock is a Hold with a $97.00 price target. To see the full list of analyst forecasts on WEC Energy Group stock, see the WEC Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
WEC Energy Group Highlights Strategic Initiatives and Growth
Positive
Apr 4, 2025

WEC Energy Group announced its participation in investor meetings, highlighting its consistent financial performance and strategic initiatives. The company has achieved 21 consecutive years of meeting or exceeding earnings guidance and continues to demonstrate robust dividend growth. Additionally, WEC Energy Group has proposed a new tariff for very large customers in Wisconsin, aimed at meeting their unique needs while protecting other stakeholders. The company is also involved in significant regional growth projects, including Microsoft’s $3.3 billion data center in Mount Pleasant, which is expected to create thousands of jobs and drive substantial energy demand.

DividendsBusiness Operations and StrategyFinancial Disclosures
WEC Energy Group Highlights Strategic Growth Plans
Positive
Mar 3, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.