WEC Energy Group (WEC) AI Stock Analysis

• Market Cap: $37.28B
• Dividend Yield: 3.01%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.07
• 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: 1,896,525
• 30 Day Avg. Volume: 1,990,571
• 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: 1.46
• Enterprise Value/Revenue: 5.86
• Enterprise Value/Gross Profit: 13.59
• Enterprise Value/Ebitda: 13.26
• 1Y Price Target: $123.93
• Price Target Upside: 6.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 76 Outperform
• Price Target: $120.00 ▲(2.85% 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, 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 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: 116.68
• 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 116.68 is above the 20-day moving average (MA) of 115.40, above the 50-day MA of 111.53, and above the 200-day MA of 105.82, indicating a bullish trend. The MACD of 1.47 indicates Positive momentum. The RSI at 59.88 is Neutral, neither overbought nor oversold. The STOCH value of 37.17 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	―	$37.28B	22.20	13.12%	3.01%	7.88%	20.67%
AEE	―	$28.20B	22.90	10.29%	2.67%	17.32%	3.35%
PCG	―	$36.05B	13.98	9.21%	0.61%	-0.27%	-7.65%
ETR	―	$43.11B	24.04	11.32%	2.47%	1.38%	-2.90%
DTE	―	$29.44B	20.41	12.61%	3.08%	14.35%	3.62%
ED	―	$36.08B	18.14	8.54%	3.37%	9.03%	7.22%
Sector *	―	$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.

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 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.

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’s Earnings Call Highlights Growth Amid Challenges

The recent earnings call for WEC Energy Group Inc. painted a generally positive picture for the company’s future, highlighting strong earnings growth and robust economic development initiatives. Despite these optimistic signals, the company acknowledged several challenges, including increased operational expenses, storm damage impacts, and higher interest expenses, which could pose hurdles in the coming quarters.

WEC Energy Group Reports Strong Q2 2025 Results

WEC Energy Group Inc., a leading energy company based in Milwaukee, operates in the utilities sector, providing electricity and natural gas to 4.7 million customers across Wisconsin, Illinois, Michigan, and Minnesota. The company is recognized for its significant infrastructure investments and commitment to renewable energy generation.