One-glance verdict
Overvalued
$-30.97 our estimate vs market $103.74
Wall Street consensus: $120.26 (-488.4% lower than our fair-value estimate)
435% below our estimate, beyond the bull case
Fundamentals snapshot
WEC Energy Group, Inc.
WEC · NYQ · Utilities · Utilities - Regulated Electric
Current price
$103.74
52-week range
$99.80 - $119.91
Market cap
$33.80B
Balance sheet
Stretched
2.65x Stretched
Net debt $22.97B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.4% last year.
- Reward Returns 12.0% on equity, ahead of 83% of its peers.
- Risk Net debt grew 29.1% over 3 years.
- Risk Insider ownership is only 0.2% (peer median: 0.2%).
What this company does
WEC Energy Group, Inc.
WEC Energy Group provides electricity and natural gas to homes and businesses, with most of its money coming from regulated services that have predictable income. This matters because these regulated services make it easier for the company to plan and pay its bills consistently, like having a steady paycheck.
How the company got here
WEC Energy Group has a history stretching back to 1896, with its earliest predecessor being The Milwaukee Electric Railway and Light Company. Over the decades, it grew and evolved, eventually forming Wisconsin Energy Corporation in 1981 as a holding company. A major turning point was the 2015 acquisition of Integrys Energy Group, which significantly expanded the company's reach and operations, leading to the adoption of the WEC Energy Group name. This strategic move broadened its footprint across multiple states and added substantial natural gas utility operations.
What it actually does
WEC Energy Group is primarily in the business of providing essential energy services – electricity and natural gas – to millions of customers. Think of it like the company that brings power to your home and gas to your stove. They own and maintain the vast networks of wires, pipes, and power generation facilities that make these services possible. Customers pay a regular bill for the reliable delivery of these essential utilities.
Electric and Natural Gas Utility Operations
WEC Energy Group operates as a regulated utility, meaning its core business is providing electricity and natural gas to homes and businesses within specific geographic areas. These operations are spread across Wisconsin, Illinois, Michigan, and Minnesota, serving millions of customers. The company generates electricity from various sources, including natural gas, coal, and renewables like wind and solar, and also distributes natural gas. Revenue comes from the regulated rates approved by state authorities for these essential services. This segment represents the largest portion of WEC's business.
Electric Transmission
This segment involves owning, maintaining, and operating the high-voltage power lines that transmit electricity over long distances. Think of these as the superhighways for electricity, connecting power generation sources to local distribution networks. WEC Energy Group's involvement here includes a significant ownership stake in American Transmission Company (ATC), which operates across the upper Midwest. This part of the business is crucial for ensuring a stable and reliable flow of electricity across a wider region.
Non-Utility Energy Infrastructure
This smaller segment includes other energy-related assets and operations that are not directly regulated in the same way as the core utility businesses. This can encompass things like non-regulated power generation or energy storage projects. While a smaller piece of the overall company, it represents an area where WEC Energy Group may pursue growth opportunities outside of traditional utility rate structures.
What management is betting on now
WEC Energy Group's current strategy heavily focuses on investing in its regulated infrastructure and transitioning to cleaner energy sources. They have a large capital investment plan to modernize and expand their electric and natural gas delivery systems, ensuring reliability for customers. A significant part of this strategy involves increasing investments in renewable energy like solar and wind, alongside battery storage, while also phasing out coal-fired power generation. They see natural gas as a critical resource during this transition, especially for ensuring reliability on days when renewable sources may not be available.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-67.30M
FY2025 Q1
$461.50M
FY2025 Q2
$23.90M
FY2025 Q3
$-625.70M
FY2026 Q1
$400.50M
FY2026 Q2
$-269.70M
Revenue
$2.06B
Net income
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Diluted EPS
—
Operating cash flow
$992.30M
Free cash flow
$-269.70M
Fetching…
Sources
Revenue
$3.43B
Net income
—
Diluted EPS
—
Operating cash flow
$1.22B
Free cash flow
$400.50M
Fetching…
Sources
Revenue
$2.54B
Net income
—
Diluted EPS
4.81
Operating cash flow
$424.60M
Free cash flow
—
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Sources
Revenue
$2.10B
Net income
—
Diluted EPS
—
Operating cash flow
$938.90M
Free cash flow
$-625.70M
Fetching…
Sources
Revenue
$2.01B
Net income
—
Diluted EPS
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Operating cash flow
$853.30M
Free cash flow
$23.90M
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Sources
Revenue
$3.15B
Net income
—
Diluted EPS
—
Operating cash flow
$1.16B
Free cash flow
$461.50M
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Sources
Revenue
$2.28B
Net income
—
Diluted EPS
4.83
Operating cash flow
$581.80M
Free cash flow
—
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Sources
Revenue
$1.86B
Net income
—
Diluted EPS
—
Operating cash flow
$729.00M
Free cash flow
$-67.30M
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Sources
Is it cheap or expensive?
Fair value $-30.97 vs current price $103.74
Wall Street consensus is the average analyst price target: $120.26 (-488.4% lower than our fair-value estimate).
Our most-likely fair value is $-30.97 a share — about 129.9% below today's price of $103.74, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $23.0B. Interest coverage 2.7x.
Net debt
$22.97B
Interest coverage
2.65x
WEC Energy Group, Inc.'s profit covers its interest bill about 2.7 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
WEC
BASELINE
WEC Energy Group, Inc.
Total debt $23.02B Interest coverage 2.65x This is the baseline the peer rows are being compared against.
Total debt $28.32B Interest coverage 2.43x -8% vs WEC Has roughly the same debt cushion as WEC.
Total debt $27.84B Interest coverage 2.39x -10% vs WEC Has roughly the same debt cushion as WEC.
Total debt $24.68B Interest coverage 3.10x +17% vs WEC Carries about 1.2x more debt cushion than WEC.
Total debt $41.65B Interest coverage 2.14x -19% vs WEC Carries about 1.2x less debt cushion than WEC.
Total debt $21.81B Interest coverage 2.61x -2% vs WEC Has roughly the same debt cushion as WEC.
What you should know
The case for and against WEC
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.4% last year.
-
Returns 12.0% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
-
Net debt grew 29.1% over 3 years.
-
Insider ownership is only 0.2% (peer median: 0.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.14x
Forward P/E
17.29x
P/B
—
P/S
3.33x
EV/EBITDA
14.43x
PEG ratio
2.04x
Profitability
How much profit each dollar creates
Gross margin
41.9%
Operating margin
21.8%
Net margin
16.7%
ROE
12.0%
ROA
3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.58x
Current ratio
0.53x
Quick ratio
0.30x
Total debt
$23.02B
Total cash
$50.00M
Growth
How the business has been compounding
Revenue TTM
$10.14B
Revenue 5Y CAGR
4.2%
EPS TTM
5.15
EPS 5Y CAGR
2.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.57B
Free CF TTM
$-1.02B
FCF margin
-10.0%
Dividend
Shareholder payout
Yield
3.7%
Payout ratio
71.7%
Last ex-div date
2026-08-14