WEC Energy Group (WEC) AI Stock Analysis

• Market Cap: $33.54B
• Dividend Yield: 3.4%
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.15
• Revenue Growth: 4.42%
• EPS Growth: 11.98%
• Country: US
• Employees: 7,000
• Sector: Utilities
• Sector Strength: 84
• Industry: Regulated Electric
• EPS (TTM): 2.27
• Shares Outstanding: 319,133,500
• 10 Day Avg. Volume: 2,264,925
• 30 Day Avg. Volume: 2,177,292
• PEG Ratio: 2.54
• Price to Book (P/B): 2.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -108.16
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 12.90
• Enterprise Value/Ebitda: 3.08
• 1Y Price Target: $111.33
• Price Target Upside: 5.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 77 Outperform
• Price Target: $119.00 ▲(13.21%Upside)

WEC Energy Group's overall stock score is driven by its strong financial performance and positive earnings call sentiment. The company's valuation and mixed technical analysis provide a balanced outlook. The significant capital investment plan is a positive factor, although potential tariff impacts pose a risk.

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

Regulatory Challenges

Regulatory proceedings in Illinois continue to be challenging, though they have a diminishing impact on WEC's overall results.

Stock Valuation

Despite one of the highest-quality profiles and most impressive execution stories in the sector, the stock appears fairly valued at these levels.

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 sale of electricity and natural gas to residential, commercial, and industrial customers. The company operates a regulated utility business model, where rates are set by public utility commissions, ensuring a stable revenue stream. Key revenue streams include customer usage charges, service fees, and infrastructure investments that allow for cost recovery and returns. Additionally, WEC Energy Group benefits from strategic investments in renewable energy projects, enhancing its earnings potential while aligning with environmental goals. These investments, alongside partnerships with state and regional energy initiatives, contribute to sustained growth and profitability.

WEC Energy Group Financial Statement Overview

Summary

WEC Energy Group demonstrates robust financial performance with consistent revenue growth and healthy profitability metrics. The strong gross and net profit margins, alongside efficient operational metrics like EBIT and EBITDA, signify sound financial health. The balance sheet is stable with manageable leverage, and cash flow indicators reflect effective cash management.

Income Statement

The company has shown strong and consistent revenue growth, with a notable increase of 5.45% in the latest TTM period. The gross profit margin is healthy at approximately 40.04%, and the net profit margin is solid at 17.98%, indicating effective cost management and profitability. EBIT and EBITDA margins are also strong, reflecting operational efficiency.

Balance Sheet

WEC Energy Group maintains a stable financial position with a debt-to-equity ratio of 1.58, which is reasonable for its industry. The return on equity is robust at 12.53%, showcasing good returns for shareholders. However, the equity ratio is moderate at 26.96%, suggesting a balanced but leveraged capital structure.

Cash Flow

The company demonstrates a solid operating cash flow to net income ratio of 2.14, indicating strong cash conversion. Free cash flow growth is positive, with a modest increase of 2.84% in the latest period. The free cash flow to net income ratio is 0.27, reflecting a cautious but improving cash flow situation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.07B	8.60B	8.89B	9.60B	8.32B	7.24B
	Gross Profit
3.63B	3.79B	3.60B	3.30B	3.00B	2.89B
	EBIT
2.30B	2.15B	1.91B	1.92B	1.71B	1.71B
	EBITDA
4.04B	3.92B	3.53B	3.15B	2.86B	2.72B
	Net Income Common Stockholders
1.63B	1.53B	1.33B	1.41B	1.30B	1.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
82.20M	9.80M	42.90M	28.90M	16.30M	24.80M
	Total Assets
48.23B	47.36B	43.94B	41.87B	38.99B	37.03B
	Total Debt
20.51B	20.02B	18.80B	17.29B	15.59B	14.29B
	Net Debt
20.43B	20.01B	18.75B	17.27B	15.57B	14.27B
	Total Liabilities
34.81B	34.56B	31.87B	30.26B	27.88B	26.37B
	Stockholders Equity
13.01B	12.43B	11.75B	11.41B	10.94B	10.50B
Cash Flow		Free Cash Flow
442.90M	430.70M	525.50M	-273.40M	-220.10M	-42.80M
	Operating Cash Flow
3.48B	3.21B	3.02B	2.06B	2.03B	2.20B
	Investing Cash Flow
-4.47B	-3.80B	-3.56B	-2.64B	-2.31B	-2.81B
	Financing Cash Flow
984.60M	467.70M	522.80M	676.40M	294.00M	601.10M

WEC Energy Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.11
• 50DMA: Negative
• 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 Negative. The current price of 105.11 is below the 20-day moving average (MA) of 106.24, below the 50-day MA of 106.25, and above the 200-day MA of 99.32, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 46.13 is Neutral, neither overbought nor oversold. The STOCH value of 44.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEC.

WEC Energy Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEC	77 Outperform	$33.54B	20.52	12.96%	3.40%	4.42%	11.98%
DTE	72 Outperform	$28.06B	18.26	13.28%	3.22%	11.16%	20.94%
ETR	68 Neutral	$35.88B	26.63	8.96%	2.92%	-0.84%	-37.59%
XEL	68 Neutral	$39.00B	19.94	10.26%	3.37%	-0.44%	2.14%
ED	66 Neutral	$37.46B	19.19	8.33%	3.27%	8.52%	3.91%
PCG	66 Neutral	$29.98B	12.54	8.55%	0.73%	1.91%	-4.40%
Sector *	64 Neutral	$8.59B	10.39	4.24%	4.64%	4.07%	-13.04%

WEC Energy Group Corporate Events

WEC Energy Group Issues $900M Convertible Notes

On June 10, 2025, WEC Energy Group, Inc. issued $900 million in 3.375% Convertible Senior Notes due 2028. These notes, which were sold under a Purchase Agreement dated June 5, 2025, are senior unsecured obligations and are convertible under specific conditions. The issuance allows WEC Energy Group to raise capital without immediate stock dilution, potentially impacting its financial strategy and market positioning.

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.

WEC Energy Group Upsizes Convertible Notes Offering

On June 5, 2025, WEC Energy Group announced the upsize and pricing of a $775 million offering of 3.375% Convertible Senior Notes due 2028, increased from the initially planned $700 million. This private offering to qualified institutional buyers includes an option for initial purchasers to buy an additional $125 million in notes. The proceeds are intended for general corporate purposes, including repaying short-term debt, potentially impacting the company’s financial flexibility and market position.

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.

WEC Energy Group Announces $700M Convertible Notes Offering

On June 5, 2025, WEC Energy Group announced a proposed private offering of $700 million in convertible senior notes due 2028 to qualified institutional buyers, with an option for initial purchasers to buy an additional $105 million. The company plans to use the proceeds for general corporate purposes, including repaying short-term debt, potentially impacting its financial flexibility and market positioning.

The most recent analyst rating on (WEC) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on WEC Energy Group stock, see the WEC Stock Forecast page.

WEC Energy Group Highlights Strategic Initiatives at Investor Meetings

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.

WEC Energy Group Approves Key Proposals at Annual Meeting

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.

WEC Energy Group Appoints New Executive Vice President

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.

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.