WEC Energy Group (WEC) AI Stock Analysis

• Market Cap: $34.71B
• Dividend Yield: 3.12%
• Average Volume (3M): 2.27M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.16
• Revenue Growth: -3.30%
• EPS Growth: 14.40%
• Country: US
• Employees: 7,017
• Sector: Utilities
• Sector Strength: 87
• Industry: Regulated Electric
• EPS (TTM): 4.83
• Shares Outstanding: 319,089,200
• 10 Day Avg. Volume: 1,742,487
• 30 Day Avg. Volume: 2,272,068
• PEG Ratio: 1.57
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 13.37
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $107.13
• Price Target Upside: -1.37% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

WEC Energy Group displays a stable financial foundation and promising growth prospects backed by a substantial capital plan and consistent dividend increases. The stock's moderate valuation and technical indicators support a positive outlook, although challenges such as regulatory issues and weather impacts present risks. Overall, WEC is well-positioned in the utilities sector, balancing profitability with substantial infrastructure investments.

Positive Factors

Capital Plan

WEC Energy Group Inc. has a robust $28 billion capital plan for 2025-2029, which supports a long-term EPS growth rate of 6.5-7.0%.

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 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 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. While the revenue growth shows some fluctuation, the company is resilient in managing costs and generating healthy cash flows. The balance sheet reflects a sound financial position, although there is room for improvement in reducing leverage.

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: 108.62
• 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 108.62 is above the 20-day moving average (MA) of 107.30, above the 50-day MA of 106.82, and above the 200-day MA of 97.04, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 68.20 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	75 Outperform	$34.71B	22.55	12.64%	3.12%	-3.30%	14.40%
ED	74 Outperform	$40.54B	21.48	8.44%	2.97%	4.23%	-27.02%
DTE	73 Outperform	$28.30B	20.15	12.32%	3.11%	-1.13%	0.16%
XEL	69 Neutral	$40.82B	20.86	10.26%	3.14%	-0.44%	2.14%
ETR	68 Neutral	$36.10B	27.04	8.94%	2.79%	-0.24%	-37.59%
PCG	68 Neutral	$37.21B	15.57	8.55%	0.42%	1.91%	-4.40%
Sector *	63 Neutral	$8.48B	11.89	5.79%	4.37%	3.17%	-10.89%

WEC Energy Group Corporate Events

WEC Energy Group Highlights Strategic Initiatives and Growth

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.

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.