Last Updated: 14 Sep 2024
Executive Summary
WEC Energy Group Inc. (WEC) is a leading electric and natural gas utility holding company with a market capitalization of $30.29 billion. The company has a strong financial position with an EBITDA of $3.57 billion and a profit margin of 15.9%. WEC's dividend yield of 3.52% is attractive, and the company has a history of dividend growth. The stock is currently trading at $95.85, below its 52-week high of $96.15.
Company Overview
WEC Energy Group is headquartered in Milwaukee, Wisconsin, and provides electricity and natural gas to 4.4 million customers in four states. The company's electric utilities include Wisconsin Electric Power Company, We Energies, and Commonwealth Edison Company. WEC's natural gas utilities include Wisconsin Gas Company, We Energies, and Peoples Gas Company.
Fundamental Analysis
WEC Energy Group's financial performance has been solid in recent years. The company's revenue has grown at a CAGR of 2.5% over the past five years, and its EPS has grown at a CAGR of 5.6%. WEC's profit margin has also improved in recent years, from 14.5% in 2017 to 15.9% in 2023.
The company's balance sheet is also strong. WEC Energy Group has a debt-to-equity ratio of 0.54, which is below the industry average. The company also has a strong cash position, with $1.5 billion in cash and equivalents on hand.
Technical Analysis
WEC Energy Group's stock price has been trending higher in recent months. The stock broke out of a downtrend in June 2023 and has since rallied to its current level of $95.85. The stock is currently trading above its 50-day and 200-day moving averages, which indicates that the trend is bullish.
Short Term Outlook
WEC Energy Group's stock is expected to continue to perform well in the short term. The company's strong financial performance and attractive dividend yield are likely to continue to attract investors. The stock is also trading at a discount to its 52-week high, which provides an opportunity for investors to buy at a good price.
Long Term Outlook
WEC Energy Group's long-term outlook is also positive. The company's regulated utility business provides a stable source of revenue and earnings. The company is also well-positioned to benefit from the growing demand for electricity and natural gas.
Analyst Recommendations
Analysts are generally positive on WEC Energy Group. The consensus analyst rating is "buy," and the average analyst target price is $91.54.
