WEC Energy Group (WEC) AI Stock Analysis

• Market Cap: $35.72B
• Dividend Yield: 3.17%
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.12
• Revenue Growth: 7.88%
• EPS Growth: 20.67%
• Country: US
• Employees: 7,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.76
• Shares Outstanding: 321,866,400
• 10 Day Avg. Volume: 2,105,084
• 30 Day Avg. Volume: 2,151,352
• PEG Ratio: 1.39
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 3.46
• P/FCF Ratio: 69.04
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 5.86
• Enterprise Value/Gross Profit: 13.59
• Enterprise Value/Ebitda: 13.26
• 1Y Price Target: $109.56
• Price Target Upside: 0.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: $120.00 ▲(10.41% Upside)

WEC Energy Group's overall stock score reflects its strong financial performance and positive earnings call sentiment. The company's robust financial metrics and strategic investments in renewable energy and infrastructure support a stable growth trajectory. While technical analysis shows mixed signals, the fair valuation and attractive dividend yield enhance the stock's appeal. The positive economic outlook in Wisconsin further bolsters confidence in future growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust market presence and effective business strategy, supporting long-term financial stability.

Capital Investment

Major capital investments in natural gas and renewable energy projects position WEC for future growth and enhanced energy reliability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial flexibility, enabling sustainable growth and investment capacity.

Negative Factors

Increased Operating Expenses

Rising operating expenses could pressure margins, impacting profitability and requiring efficiency improvements to maintain earnings.

Storm Damage Impacts

Storm damage impacts highlight vulnerability to weather-related disruptions, potentially affecting operational stability and costs.

Higher Interest Expenses

Rising interest expenses can strain financial resources, reducing net income and potentially limiting future investment opportunities.

WEC Energy Group Business Overview & Revenue Model

Company Description

WEC Energy Group (WEC) is a diversified energy company headquartered in Milwaukee, Wisconsin. It operates through several subsidiaries, primarily in the sectors of electric and natural gas utility services, renewable energy generation, and energy-related infrastructure. The company serves millions of customers across Wisconsin, Minnesota, and Michigan, providing essential services that include electricity and natural gas distribution, as well as the generation of renewable energy from wind and solar sources.

How the Company Makes Money

WEC Energy Group generates revenue primarily through the provision of utility services to residential, commercial, and industrial customers. Its key revenue streams include regulated electric and gas utility operations, where the company earns money through the sale of electricity and natural gas, as well as infrastructure investments. WEC also profits from its renewable energy projects, which benefit from long-term power purchase agreements (PPAs) and federal tax incentives for renewable energy generation. Moreover, the company has strong partnerships with various local and state governments and regulatory bodies, which allow it to secure funding for infrastructure projects and maintain stable pricing models. Additionally, WEC's investment in energy efficiency programs and demand-side management initiatives contributes to its revenue by incentivizing customers to reduce consumption, thereby optimizing the company's energy production and distribution operations.

WEC Energy Group Financial Statement Overview

Summary

WEC Energy Group demonstrates strong financial performance with consistent revenue and profit growth, robust margins, and effective leverage management. The income statement is particularly strong, with a high net profit margin and healthy EBIT and EBITDA margins. The balance sheet is stable with a solid equity base and low debt-to-equity ratio. Cash flow is positive with growing operating cash flows, though free cash flow could be improved by optimizing capital expenditures.

Income Statement

WEC Energy Group shows strong income statement metrics with consistent revenue growth from $7.24 billion in 2020 to $9.31 billion in TTM 2025. The gross profit margin is robust, maintaining above 40% over the years, with a TTM gross profit margin of 43.13%. Net profit margin has also been commendable, with a TTM net profit margin of 17.87%. The EBIT and EBITDA margins remain healthy, reflecting efficient operational management.

Balance Sheet

The balance sheet is stable with a solid equity base, as evidenced by an equity ratio of 78.77% in TTM 2025. The debt-to-equity ratio is reasonably low at 0.09, indicating prudent leverage management. Return on equity for TTM 2025 is strong at 4.35%, showcasing good profitability relative to shareholder equity. The company has managed to reduce total debt over the years, contributing to financial stability.

Cash Flow

Cash flow analysis reveals a positive trajectory with growing operating cash flows reaching $3.33 billion in TTM 2025. Free cash flow shows improvement, although it remains relatively modest at $153.5 million in TTM 2025 due to significant capital expenditures. The operating cash flow to net income ratio is favorable at 2.00, indicating strong cash generation capability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.31B	8.60B	8.89B	9.60B	8.32B	7.24B
Gross Profit	4.01B	3.79B	3.60B	3.30B	3.00B	2.89B
EBITDA	4.11B	3.92B	3.53B	3.37B	3.04B	2.90B
Net Income	1.66B	1.53B	1.33B	1.41B	1.30B	1.20B
Balance Sheet
Total Assets	48.52B	47.36B	43.94B	41.87B	38.99B	37.03B
Cash, Cash Equivalents and Short-Term Investments	23.00M	9.80M	42.90M	28.90M	16.30M	24.80M
Total Debt	20.53B	20.33B	18.80B	17.37B	15.59B	14.29B
Total Liabilities	34.85B	34.56B	31.87B	30.26B	27.88B	26.37B
Stockholders Equity	13.25B	12.43B	11.75B	11.41B	10.94B	10.50B
Cash Flow
Free Cash Flow	153.50M	430.70M	525.50M	-254.20M	-220.10M	-42.80M
Operating Cash Flow	3.33B	3.21B	3.02B	2.06B	2.03B	2.20B
Investing Cash Flow	-4.52B	-3.80B	-3.56B	-2.64B	-2.31B	-2.81B
Financing Cash Flow	964.10M	467.70M	522.80M	676.40M	294.00M	601.10M

WEC Energy Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.69
• 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 108.69 is above the 20-day moving average (MA) of 108.07, above the 50-day MA of 107.62, and above the 200-day MA of 102.84, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 78.08 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	76 Outperform	$35.72B	21.27	13.12%	3.17%	7.88%	20.67%
AEE	75 Outperform	27.17B	22.07	9.96%	2.79%	17.32%	3.35%
DTE	69 Neutral	28.33B	19.63	12.31%	3.20%	14.35%	3.62%
ETR	68 Neutral	40.26B	22.45	10.89%	2.66%	1.38%	-2.90%
ED	66 Neutral	34.98B	17.59	8.15%	3.49%	9.03%	7.22%
PCG	62 Neutral	33.71B	14.19	7.81%	0.55%	-1.30%	-8.34%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

WEC Energy Group Corporate Events

WEC Energy Group Highlights Strategic Initiatives and Growth

WEC Energy Group announced its participation in upcoming investor meetings, highlighting its robust financial performance and strategic initiatives. The company has consistently exceeded earnings guidance for 21 years and continues to demonstrate strong dividend growth, with a 6.9% increase in January 2025. WEC is also focusing on regional growth, with significant projects like the Wisconsin Very Large Customer Tariff and partnerships with major corporations like Microsoft, which is developing a $3.3 billion data center in Mount Pleasant. These initiatives are expected to drive substantial demand and economic growth in the region.

WEC Energy Group Engages Investors on Future Plans

WEC Energy Group is engaging with investors to discuss its future plans and performance. The company has consistently achieved strong earnings and dividend growth, with a 6.9% increase in dividends in January 2025. It is also focusing on meeting the needs of very large customers through a new tariff filed with the Public Service Commission of Wisconsin, which is expected to support significant regional growth and energy demand, particularly with projects like Microsoft’s data center in Mount Pleasant.

WEC Energy Group Extends Oak Creek Plant Operations

On June 25, 2025, Wisconsin Electric Power Company, a subsidiary of WEC Energy Group, announced plans to extend the operational life of units 7 and 8 at the Oak Creek Power Plant to meet high energy demand through the end of 2026. This strategic move is expected to enhance the company’s ability to cater to energy demands, potentially strengthening its market position and impacting stakeholders by ensuring energy reliability during peak periods.

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.