WECWEC
US • —
$116.62
P/E
23.26
PEG
—
FCF Yield
—
Rev Growth YoY
+10.0% YoY
Gross Margin
35.8%
Health Score
5/10
D/E Ratio
1.64
Confidence
MEDIUM
Business Snapshot
WEC Energy Group is a regulated utility holding company that provides electricity and natural gas to approximately 4.7 million customers across Wisconsin, Illinois, Michigan, and Minnesota. It operates in a highly regulated market where returns are largely determined by rate-case outcomes, giving it a stable but growth-constrained utility business model. The company has a defensive profile supported by consistent dividend payments and a regulatory framework that typically allows for predictable earnings. Its defining characteristic is its fully regulated operational structure, which provides revenue visibility but limits upside beyond approved rate increases and customer growth tied to economic expansion in its service territories.
Financial Health
WEC’s gross margin of 35.8% reflects a standard utility cost structure, while a net margin of 16.8% indicates decent profitability relative to revenue. The balance sheet carries a Debt/Equity ratio of 1.64x, which is elevated and typical for capital-intensive utilities that rely on debt to fund infrastructure investment, though it also signals financial leverage that must be monitored...
Risk Assessment
- DEBT / LIQUIDITY — Debt/Equity of 1.64x and a current ratio of 0.59x indicate elevated leverage and constrained short-term liquidity, which are risks in a rising interest rate environment.
- EARNINGS QUALITY — Earnings declined 2.2% year-over-year despite revenue growth of 10.0%, suggesting margin compression or higher financing costs eating into profitability.
- INSIDER — Insider activity shows 0 buys vs 3 sells over the last 90 days, a net selling pattern that typically signals a lack of confidence from company executives.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION — P/E of 23.26x sits modestly above the sector average of 22x, offering no significant valuation buffer for potential earnings disappointments....
WEC’s gross margin of 35.8% reflects a standard utility cost structure, while a net margin of 16.8% indicates decent profitability relative to revenue. The balance sheet carries a Debt/Equity ratio of 1.64x, which is elevated and typical for capital-intensive utilities that rely on debt to fund infrastructure investment, though it also signals financial leverage that must be monitored. The current ratio of 0.59x highlights a significant liquidity constraint — current liabilities exceed current assets — which is a common but notable risk for utility companies with predictable cash flows. Free cash flow data is unavailable, making it impossible to assess whether the company is self-funding its dividend or relying on debt markets for liquidity. Overall, the company’s financial health is adequate for a regulated utility but is constrained by high leverage and low liquidity.
- DEBT / LIQUIDITY — Debt/Equity of 1.64x and a current ratio of 0.59x indicate elevated leverage and constrained short-term liquidity, which are risks in a rising interest rate environment. - EARNINGS QUALITY — Earnings declined 2.2% year-over-year despite revenue growth of 10.0%, suggesting margin compression or higher financing costs eating into profitability. - INSIDER — Insider activity shows 0 buys vs 3 sells over the last 90 days, a net selling pattern that typically signals a lack of confidence from company executives. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION — P/E of 23.26x sits modestly above the sector average of 22x, offering no significant valuation buffer for potential earnings disappointments.
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