WEC Energy Group (WEC) AI Stock Analysis

• Market Cap: $33.66B
• Dividend Yield: 3.38%
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.05
• Revenue Growth: 11.88%
• EPS Growth: 29.76%
• Country: US
• Employees: 7,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.83
• Shares Outstanding: 325,294,250
• 10 Day Avg. Volume: 2,115,638
• 30 Day Avg. Volume: 2,124,518
• 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: 1.75
• Enterprise Value/Revenue: 6.17
• Enterprise Value/Gross Profit: 12.44
• Enterprise Value/Ebitda: 14.02
• 1Y Price Target: $122.09
• Price Target Upside: 17.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 5.23
• Revenue Forecast (FY): $9.36B

• Rating: 67 Neutral
• Price Target: $114.00 ▲(9.74% Upside)

WEC Energy Group's overall stock score is driven by strong earnings call insights, highlighting significant capital investments and growth prospects. However, technical analysis indicates bearish momentum, and cash flow management needs improvement. The valuation is reasonable, but not compelling enough to offset the technical weaknesses.

Positive Factors

Capital Investment and Growth

The significant increase in capital investment supports long-term growth and infrastructure expansion, positioning WEC for future demand.

Dividend Growth

Consistent dividend growth reflects strong financial health and commitment to returning value to shareholders, enhancing investor confidence.

Revenue Growth

Stable revenue growth indicates resilience in core operations and effective market positioning, supporting long-term financial stability.

Negative Factors

Cash Flow Management

Negative free cash flow highlights challenges in liquidity management, which could impact the company's ability to fund operations and investments.

Higher Operating Expenses

Rising operating expenses can pressure margins, potentially reducing profitability and affecting the company's competitive edge.

Point Beach Nuclear Plant Negotiations

Uncertainty in negotiations may lead to operational disruptions or increased costs, impacting long-term strategic planning and capacity.

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, including electric and natural gas sales to residential, commercial, and industrial customers. The company earns money by charging customers based on consumption rates, which are regulated by state utility commissions. Additionally, WEC has significant revenue streams from infrastructure investments, where it expands its utility networks and renewable energy generation capabilities. The company also benefits from long-term power purchase agreements and partnerships with renewable energy developers, which provide stable income from energy sales. Regulatory mechanisms, such as rate cases and cost recovery processes, further enhance its ability to generate earnings consistently.

WEC Energy Group Financial Statement Overview

Summary

WEC Energy Group demonstrates solid financial health with strong profitability and a stable balance sheet. However, cash flow management requires attention due to negative free cash flow, which could impact liquidity.

Income Statement

WEC Energy Group shows a stable revenue growth rate of 2.58% in the TTM, recovering from a decline in previous years. The gross profit margin remains strong at 43.24%, and the net profit margin is healthy at 17.73%. However, the EBIT margin has decreased compared to previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.09 in the TTM, significantly improved from previous years, indicating strong financial stability. The return on equity is moderate at 8.70%, suggesting efficient use of equity capital. The equity ratio is solid, reflecting a strong asset base.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is reasonable at 0.74, but the negative free cash flow to net income ratio highlights the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.55B	8.60B	8.89B	9.60B	8.32B	7.24B
Gross Profit	4.73B	3.79B	3.60B	3.30B	3.00B	2.89B
EBITDA	4.20B	3.92B	3.53B	3.37B	3.04B	2.90B
Net Income	1.70B	1.53B	1.33B	1.41B	1.30B	1.20B
Balance Sheet
Total Assets	49.81B	47.36B	43.94B	41.87B	38.99B	37.03B
Cash, Cash Equivalents and Short-Term Investments	51.10M	9.80M	42.90M	28.90M	16.30M	24.80M
Total Debt	21.19B	20.33B	18.80B	17.37B	15.59B	14.29B
Total Liabilities	35.80B	34.56B	31.87B	30.26B	27.88B	26.37B
Stockholders Equity	13.60B	12.43B	11.75B	11.41B	10.94B	10.50B
Cash Flow
Free Cash Flow	-404.90M	430.70M	525.50M	-254.20M	-220.10M	-42.80M
Operating Cash Flow	3.54B	3.21B	3.02B	2.06B	2.03B	2.20B
Investing Cash Flow	-5.32B	-3.80B	-3.56B	-2.64B	-2.31B	-2.81B
Financing Cash Flow	1.54B	467.70M	522.80M	676.40M	294.00M	601.10M

WEC Energy Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 103.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 103.88 is below the 20-day moving average (MA) of 108.50, below the 50-day MA of 111.44, and below the 200-day MA of 106.99, indicating a bearish trend. The MACD of -2.14 indicates Positive momentum. The RSI at 26.27 is Positive, neither overbought nor oversold. The STOCH value of 6.34 is Positive, 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
AEE	68 Neutral	$26.31B	18.71	11.47%	2.92%	22.71%	22.86%
WEC	67 Neutral	$33.66B	19.56	13.19%	3.38%	11.88%	29.76%
ETR	66 Neutral	$41.68B	23.03	11.33%	2.64%	6.71%	-0.12%
PCG	66 Neutral	$32.60B	12.64	9.21%	0.66%	-0.27%	-7.65%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
DTE	65 Neutral	$27.15B	19.59	11.64%	3.36%	19.42%	-9.68%
ED	62 Neutral	$34.44B	16.67	8.84%	3.49%	10.35%	7.64%

WEC Energy Group Corporate Events

WEC Energy Group Plans Dividend Increase for 2026

WEC Energy Group announced plans to raise its quarterly dividend to 95.25 cents per share for the first quarter of 2026, marking the 23rd consecutive year of dividend increases. The company is also focusing on significant regional growth, with major investments in data centers along the Milwaukee to Chicago corridor and in Port Washington, which are expected to create thousands of jobs. Additionally, WEC Energy Group has outlined a robust capital plan for 2026-2030, with $8.5 billion in additional investments compared to the previous five-year plan, focusing on natural gas generation, regulated renewables, and electric distribution.

WEC Energy Group Sets 2026 Executive Performance Measures

On December 4, 2025, WEC Energy Group‘s Compensation Committee established performance measures for the 2026 Short-Term Performance Plan, focusing on financial achievements such as earnings per share and cash flow. The plan also considers operational and social performance areas, impacting incentive awards for executives. Additionally, the 2026 Performance Unit Awards will be based on total shareholder return and return on equity, with potential adjustments based on stock price to earnings ratio, reflecting WEC Energy’s commitment to aligning executive incentives with shareholder interests.

WEC Energy Group Highlights Strong Growth and Investments

WEC Energy Group announced its participation in upcoming investor meetings, highlighting its robust financial performance and growth strategies. The company has consistently met or exceeded earnings guidance for 21 consecutive years and continues to show strong dividend growth, with a recent 6.9% increase. WEC Energy Group is investing heavily in its infrastructure, planning an additional $8.5 billion in capital investments from 2026 to 2030 to support long-term earnings growth. The company is also involved in significant regional projects, including a $7 billion investment in a Microsoft data center and a $15 billion investment in a Vantage Data Center campus, which are expected to drive substantial demand and job creation.

WEC Energy Group Issues $600M Subordinated Notes

On November 3, 2025, WEC Energy Group, Inc. announced the issuance and sale of $600 million in 5.625% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due in 2056. This financial move, conducted under a registered offering, is expected to impact the company’s financial structure and market positioning by potentially enhancing its capital resources.

WEC Energy Group Announces $3 Billion Equity Agreement

On October 31, 2025, WEC Energy Group, Inc. entered into an equity distribution agreement with several financial institutions as sales agents and forward purchasers. This agreement allows the company to offer and sell up to $3.0 billion in common stock, potentially impacting its capital structure and market positioning. The arrangement includes forward sale agreements and collared forward transactions, which could influence the company’s financial strategy and stakeholder interests.