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WEC Energy Group Inc
🇺🇸 WEC · NYSE/NASDAQ · US92939U1060
Utilities
USD 114.92 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
22.9
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 114.92 ÷ 5.02 = 22.9
TTM period through: 2026-03-31
Forward P/E (estimated): 20.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 23.0
Net Debt/EBITDA (TTM)
5.4x
Latest quarter: 15.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 15.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
11.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
14.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
3.21%
TTM: 3.12%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 3.21%
Trailing Yield (TTM, last 12 months): 3.12%
Payout Ratio (Fwd)
76.0%
TTM: 71.7%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 76.0%
Payout (TTM): 71.7%
Cash Flow Payout (TTM): 34.5%
FCF Coverage (TTM): -0.94x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
7.1%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 14 May 2027 | — | USD | 0.9525 |
| Forecast* | Quarterly | — | 13 Feb 2027 | — | USD | 0.9525 |
| Forecast* | Quarterly | — | 14 Nov 2026 | — | USD | 0.8925 |
| Forecast* | Quarterly | — | 14 Aug 2026 | — | USD | 0.8925 |
| Paid | Quarterly | 16 Apr 2026 | 14 May 2026 | 01 Jun 2026 | USD | 0.9525 |
| Paid | Quarterly | 04 Dec 2025 | 13 Feb 2026 | 01 Mar 2026 | USD | 0.9525 |
| Paid | Quarterly | 16 Oct 2025 | 14 Nov 2025 | 01 Dec 2025 | USD | 0.8925 |
| Paid | Quarterly | 17 Jul 2025 | 14 Aug 2025 | 01 Sep 2025 | USD | 0.8925 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
WEC Energy Group is a premium regulated utility providing essential electric and natural gas services with a highly reliable monopoly business model and an exceptional dividend growth history. Trading at $114.92 vs our P/FFO fair value estimate of $126-188, the stock offers a compelling upside to fair value, making it worth considering for new positions. While massive capital investments temporarily suppress free cash flow, the secure 3.1% yield and clear rate recovery path provide an attractive combination of income and value.
Sector Context
WEC Energy Group operates as a regulated electric and natural gas utility, generating revenue by providing essential energy distribution services to millions of customers across the US Midwest. For dividend investors, regulated utilities are ideal holdings because their regional monopoly status and regulated rate bases provide highly predictable, recession-resistant cash flows, allowing them to safely carry higher debt loads and maintain consistent dividend growth.
Temporary Opportunity Identified
Heavy capital expenditure requirements for decarbonization and grid modernization, combined with near-term regulatory lag in Illinois, are temporarily suppressing free cash flow and inflating debt metrics, obscuring the underlying earning power of its monopoly assets.
📊 Strategy Analysis
- • Trading at $114.92, below our P/FFO fair value range of $125.62-$188.43, offering an attractive margin of safety and significant upside potential.
- • The P/FFO valuation of 10.98x indicates the stock is cheap relative to its true cash-generating power, providing a more accurate metric than the elevated GAAP P/E.
- • Exceptional dividend track record with a 3.12% yield and consistent annual increases (including a recent 6.9% raise), backed by a regulated long-term growth plan.
- • Regulated regional monopoly position provides highly visible, essential-service cash flows that are fundamentally resistant to economic cycles.
⚠ What to Watch
- • Elevated Net Debt/EBITDA of 5.37x and negative FCF coverage are driven by the massive $37.5B capital expenditure plan, necessitating ongoing external financing.
- • The expiration of the Illinois QIP rider and a recent $350M capex disallowance settlement introduce increased regulatory lag for its Peoples Gas subsidiary.
- • Long-term environmental liabilities, including legacy Manufactured Gas Plant (MGP) cleanup and coal ash remediation, present ongoing structural cost pressures.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-11
Disclaimer: This information is for educational purposes only. Not financial advice.