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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on WEC

WEC Energy Group's recent performance was driven by strong Q2 earnings, beating estimates with $0.76 per share, up from $0.67 per share a year ago. Residential sales surged, fueling a 16% increase in profit. The company's robust capital investments, data center demand, and $3.02 per share net income for the first six months of 2025 position it for continued revenue and earnings growth. With a 3.3% yield and 21 years of dividend growth, WEC Energy offers predictable earnings and a strong balance sheet, supporting long-term appreciation.

1.c. Company Highlights

2. WEC Energy Group's Strong Q3 2025 Earnings and Ambitious 5-Year Plan

WEC Energy Group reported earnings of $0.83 per share for Q3 2025, beating analyst estimates of $0.81. The company's financial performance remains robust, with a reaffirmed earnings guidance of $5.17 to $5.27 per share for 2025. The strong earnings are a testament to the company's effective execution of its business strategy, driven by economic growth in the region, particularly from large customers like Microsoft and Vantage Data Centers. With a 'P/E Ratio' of 21.32, the market seems to have priced in a certain level of growth, but the company's updated 5-year capital plan suggests that there may be more to come.

Publication Date: Nov -01

📋 Highlights
  • Reaffirmed 2025 Earnings Guidance: $0.83 EPS for Q3 2025, with full-year guidance of $5.17–$5.27/share.
  • 5-Year Capital Plan Expansion: $36.5B in 2026–2030 investments, a 30% increase from prior plans.
  • Customer-Driven Demand Growth: Microsoft and Vantage projects expected to add 1.6 GW and 3.5 GW of demand, respectively.
  • Dividend Growth Target: 6.5–7% annual increase, with 65–70% payout ratio of earnings.
  • Transmission & Renewables Investment: $4.1B allocated to transmission upgrades via American Transmission Company between 2026–2030.

Investment and Growth Drivers

The company's new 5-year capital plan is ambitious, with expected investments of $36.5 billion between 2026 and 2030, a 30% increase from the previous plan. This plan is driven by the growing demand from large customers, including Microsoft's data center complex in Mount Pleasant, Wisconsin, which is expected to drive 1.6 gigawatts of demand growth. The company expects asset-based growth at an average rate of 11% per year, supporting updated long-term projected earnings per share growth of 7% to 8% per year between 2026 and 2030.

Financing and Dividend Growth

WEC Energy Group expects to fund incremental capital with 50% equity content, with approximately $5 billion of common equity expected to be issued over the next 5 years. The company targets a payout ratio of 65% to 70% of earnings and expects to grow the dividend at a rate of 6.5% to 7%. With a 'Dividend Yield (%)' of 3.14, the company's dividend is attractive to income investors.

Regulatory and Operational Considerations

The company is still in discussions with NextEra regarding the Point Beach nuclear plant, but the timing of an announcement may be shifting further out. WEC Energy Group is considering all options, including replacing capacity if necessary, and believes that there may be capital upside if it does not renew the Point Beach agreement. The company's 'ROE (%)' of 8.7 suggests that it is generating strong returns on equity, and its 'ROIC (%)' of 5.15 indicates that it is creating value for investors.

Outlook and Valuation

3. NewsRoom

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WEC Energy Group announces plan to increase dividend by 6.7 percent

Dec -04

Source: prnewswire.com

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Choreo LLC Acquires 1,561 Shares of WEC Energy Group, Inc. $WEC

Dec -01

Source: defenseworld.net

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Banco Bilbao Vizcaya Argentaria S.A. Has $622,000 Stock Holdings in WEC Energy Group, Inc. $WEC

Nov -19

Source: defenseworld.net

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WEC Energy Q3 Earnings: Keeping The Long-Term Mindset

Nov -14

Source: seekingalpha.com

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We Energies named best in the Upper Midwest for reliability

Nov -13

Source: prnewswire.com

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Allworth Financial LP Raises Stock Holdings in WEC Energy Group, Inc. $WEC

Nov -12

Source: defenseworld.net

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FE vs. WEC: Which Stock Should Value Investors Buy Now?

Nov -07

Source: zacks.com

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WEC Energy Q3 Earnings Beats Estimates, Revenues Rise Y/Y

Oct -31

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.36%)

6. Segments

Utility Operations - Wisconsin

Expected Growth: 4.4%

WEC Energy Group, Inc. is expected to grow due to increasing demand for electric and natural gas services in Wisconsin, driven by population growth and economic development.

Non-Utility Energy Infrastructure

Expected Growth: 4.5%

Strong demand for natural gas and electricity, driven by population growth and increasing industrial activity, supports WEC Energy Group’s pipeline and power generation growth.

Utility Operations - Illinois

Expected Growth: 4.4%

WEC Energy Group’s growth is driven by increasing demand for electricity, focus on renewable energy, and strategic acquisitions. The company’s long-term plan to invest in infrastructure and technology will support its growth momentum.

Utility Operations - Other States

Expected Growth: 4.4%

WEC Energy Group’s operations outside Wisconsin, Michigan, and Illinois are expected to grow, driven by increasing demand for electricity, particularly in the southeastern states, and the company’s strategic investments in renewable energy and grid modernization.

Reconciling Eliminations

Expected Growth: 5.2%

WEC Energy Group’s elimination of intercompany transactions and balances between subsidiaries will enhance financial transparency, leading to improved operational efficiency and better resource allocation, driving growth.

7. Detailed Products

Electricity

Generation, transmission, and distribution of electricity to residential, commercial, and industrial customers

Natural Gas

Distribution of natural gas to residential, commercial, and industrial customers

Renewable Energy

Generation of electricity from wind, solar, and hydroelectric sources

Energy Efficiency

Offering energy-saving solutions and programs to reduce energy consumption

Transmission and Distribution

Operating and maintaining the infrastructure for transmitting and distributing electricity and natural gas

8. WEC Energy Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

WEC Energy Group, Inc. operates in a regulated industry, which limits the threat of substitutes. However, the increasing adoption of renewable energy sources and energy storage technologies could pose a moderate threat to the company's traditional business model.

Bargaining Power Of Customers

WEC Energy Group, Inc. serves a diverse customer base, including residential, commercial, and industrial customers. The company's large customer base and lack of concentration reduce the bargaining power of individual customers.

Bargaining Power Of Suppliers

WEC Energy Group, Inc. relies on a diverse range of suppliers for fuel, equipment, and services. While the company has some bargaining power due to its scale, suppliers may still exert some pressure on prices and terms.

Threat Of New Entrants

The energy industry is highly regulated, and new entrants face significant barriers to entry, including high capital costs, complex regulatory requirements, and the need for specialized expertise.

Intensity Of Rivalry

WEC Energy Group, Inc. operates in a highly competitive industry, with several large players vying for market share. The company faces intense competition in terms of pricing, customer service, and innovation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 61.53%
Debt Cost 4.46%
Equity Weight 38.47%
Equity Cost 5.92%
WACC 5.02%
Leverage 159.92%

11. Quality Control: WEC Energy Group, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
WEC Energy

A-Score: 6.9/10

Value: 6.1

Growth: 4.9

Quality: 6.7

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

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DTE Energy

A-Score: 6.5/10

Value: 4.7

Growth: 3.7

Quality: 6.9

Yield: 6.0

Momentum: 7.5

Volatility: 10.0

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Exelon

A-Score: 6.4/10

Value: 5.9

Growth: 3.8

Quality: 4.4

Yield: 7.0

Momentum: 7.5

Volatility: 10.0

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Xcel Energy

A-Score: 6.4/10

Value: 5.0

Growth: 4.6

Quality: 3.9

Yield: 6.0

Momentum: 9.0

Volatility: 10.0

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Dominion Energy

A-Score: 6.3/10

Value: 5.5

Growth: 3.6

Quality: 4.6

Yield: 8.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

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NextEra Energy

A-Score: 5.3/10

Value: 2.4

Growth: 6.0

Quality: 5.4

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

105.71$

Current Price

105.71$

Potential

-0.00%

Expected Cash-Flows