# WEC Energy Group (WEC.US)

Canonical: https://gigainvestors.com/s/WEC

Analysis as of: 2026-10-16T07:33:03.620Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $106.04 per share; close as of 2026-10-15.

Estimated value: low $53.92 per share, central $66.52 per share, high $77.59 per share. Buy at or below the central value $66.52 per share. Valuation as of 2026-10-16T07:33:03.620Z; scenarios are not confidence intervals.

Expected annual return: 7.4% at the stated quote. About 7.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.23×

- FY2018: 0.19×

- FY2019: 0.20×

- FY2020: 0.24×

- FY2021: 0.21×

- FY2022: 0.20×

- FY2023: 0.21×

- FY2024: 0.25×

- FY2025: 0.24×

- LTM to Jun 2026: 0.24×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.7%

- ROIC, second-lowest year: 6.1%

- Typical minus recent gross margin: -12.5 pp

- Typical gross margin (annual median): 38.1%

- Recent gross margin (lower of latest and 3-year median): 50.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 29.0%

- ROIC including acquisitions, ten-year median: 1.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 7.8%

- FY2018: 6.8%

- FY2019: 7.0%

- FY2020: 6.6%

- FY2021: 6.3%

- FY2022: 6.1%

- FY2023: 6.0%

- FY2024: 6.3%

- FY2025: 6.7%

- LTM to Jun 2026: 6.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.63×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $4.5B

- Net income, five-year total: $7.1B

- Return on incremental invested capital: 9.6%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.3 pp

- Working capital / revenue, final three-year average: 16.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.08×

- FY2024: 0.07×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.8% vs 6.3%

- Per-share earnings: 2.97 to 4.81 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.7%

- Ordinary dilution, 5-year annual growth: 0.5%

- Market cap gain: $16B

- Cumulative retained earnings: $3.9B

- Diluted shares, 10-year annual growth: 1.7%

- Diluted shares, 5-year annual growth: 0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 6.2%

- Per-share value change: $1.85

- Per-share value, starting three-year median: $2.97

- Per-share value, ending three-year median: $4.81

- Buybacks concentrated in cheaper years (correlation): -0.14

- Average buyback yield: 0.2%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $3.6B

- Cumulative net income, 10 years: $13B

- ROIC, first three-year median: 6.8%

- ROIC, last three-year median: 6.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.97

- FY2017: $3.80

- FY2018: $3.35

- FY2019: $3.58

- FY2020: $3.79

- FY2021: $4.11

- FY2022: $4.46

- FY2023: $4.22

- FY2024: $4.83

- FY2025: $4.81

### accounting: pass

- Sloan accruals: -3.5%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.17×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.27×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.9%

- FY2017: -2.8%

- FY2018: -4.1%

- FY2019: -3.5%

- FY2020: -2.7%

- FY2021: -1.9%

- FY2022: -1.6%

- FY2023: -3.8%

- FY2024: -3.6%

- FY2025: -3.5%

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 8.7% a year for ten years · sales +3.4%

Story as of 2026-10-16T09:59:51.060Z; price observation 2026-10-15.

Price needs cash profits to grow 8.7% a year for ten years

- 2025-07-30: WEC Energy reaffirms $5.17-$5.27 EPS guidance for 2025 as economic development accelerates ([seekingalpha.com](https://seekingalpha.com/news/4475027-wec-energy-reaffirms-5_17-5_27-eps-guidance-for-2025-as-economic-development-accelerates?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-02-05: WEC Energy beats top-line and bottom-line estimates; reaffirms FY26 outlook ([seekingalpha.com](https://seekingalpha.com/news/4547797-wec-energy-beats-top-line-and-bottom-line-estimates-reaffirms-fy26-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-07-29: WEC Energy Beats Earnings Forecast but Revenue Miss and Outlook Weigh on Shares ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/wec-energy-beats-earnings-forecast-134131255.html))

### Sales · FY2025–2026

sales +3.4%; source https://www.sec.gov/Archives/edgar/data/783325/000078332526000018/wec-20251231.htm; observed 2026-02-20.

- FY2017: $7.6B 

- FY2018: $7.7B 

- FY2019: $7.5B 

- FY2020: $7.2B 

- FY2021: $8.3B 

- FY2022: $9.6B 

- FY2023: $8.9B 

- FY2024: $8.6B 

- FY2025: $9.8B 

- FY2026: $10B 

### Gross margin · FY2026

gross margin 62%; source https://www.sec.gov/Archives/edgar/data/783325/000078332526000018/wec-20251231.htm; observed 2026-02-20.

- FY2017: 36.2% 

- FY2018: 32.7% 

- FY2019: 35.4% 

- FY2020: 39.9% 

- FY2021: 36.1% 

- FY2022: 34.4% 

- FY2023: 40.5% 

- FY2024: 44.0% 

- FY2025: 50.5% 

- FY2026: 62.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities regulated electric; annual sales are USD 9.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/783325/000078332526000018/wec-20251231.htm (filed 2026-02-20); FY2025: revenue 9800100000; grossProfit 4953800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WEC.US: 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 Wisconsin, Illinois, Other States, Electric Transmission, and Non-Utility Energy Infrastructure segments. It generates and distributes electricity from coal, natural gas, oil, and nuclear, as well as renewable energy resources, including wind, solar, hydroelectric, and biomass; and distributes and hydroelectric natural gas. The company also owns, maintains, monitors, and operates electric transmission systems; and generates, distributes, and sells steam. As of December 31, 2025, the company operated approximately 35,200 miles of overhead distribution lines and 37,600 miles of underground distribution cables, as well as 420 electric distribution substations and 649,500 line transformers; approximately 47,200 miles of natural gas distribution mains; 1,300 miles of natural gas transmission mains; 2.4 million natural gas lateral services; 510 natural gas distribution and transmission gate stations; and 67.0 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 founded in 1896 and is headquartered in Milwaukee, Wisconsin.

### Why customers stay

Margins ranged from 40.5% to 50.5% during 2023–25; it earns 6.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 40.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 44%.

- Source: https://www.sec.gov/Archives/edgar/data/783325/000078332526000018/wec-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 50.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2017,0.07768073886252118],[2018,0.06848827182047498],[2019,0.06970913488573033],[2020,0.06604544703252954],[2021,0.06331752269124637],[2022,0.06093504886771486],[2023,0.06023637375017596],[2024,0.06329188179595954],[2025,0.06714085647551764],[2026,0.06721765856563454]]; median 0.06659315175402358. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 9.6% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 661100000; upkeep 762600000; owner earnings 940200000. Growth capex / owner earnings = 0.7031482663263136.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 470833195.504601; upkeep 1488666804.495399; owner earnings 514833195.504601. Growth capex / owner earnings = 0.9145354254849971.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 1178500000; upkeep 1074300000; owner earnings 1301500000. Growth capex / owner earnings = 0.9054936611601998.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 1211500000; upkeep 1122600000; owner earnings 1409300000. Growth capex / owner earnings = 0.8596466330802526.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 2492900000; owner earnings 104200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 2781100000; owner earnings 101800000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/783325/000078332526000018/wec-20251231.htm (filed 2026-02-20); FY2025: growth capex 2919600000; upkeep 1478500000; owner earnings 1558400000. Growth capex / owner earnings = 1.8734599589322383.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Incremental return on capital 0.09631344275739552, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,624900000],[2017,656500000],[2018,697300000],[2019,744500000],[2020,798000000],[2021,854800000],[2022,917900000],[2023,984200000],[2024,1056200000],[2025,1147800000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/783325/000078332526000018/wec-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 1300000 USD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WEC.US SharesStats.PercentInsiders = 0.152 percentage points; cache date 2026-10-16.

### What could break it

"Our business is significantly impacted by governmental legislation, regulation, and oversight." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/783325/000078332526000018/wec-20251231.htm (filed 2026-02-20); Our business is significantly impacted by governmental legislation, regulation, and oversight.

### What the price says

The price assumes cash profits grow 8.7% yearly over ten years; actual growth was 7.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.11252101006883797. Price 106.04; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.348001466813348 → FY2025 4.812847436689315. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $59.72 per share

- 2016-11: $56.01 per share

- 2016-12: $58.65 per share

- 2017-01: $59.05 per share

- 2017-02: $60.27 per share

- 2017-03: $60.63 per share

- 2017-04: $60.52 per share

- 2017-05: $62.76 per share

- 2017-06: $61.38 per share

- 2017-07: $62.97 per share

- 2017-08: $65.22 per share

- 2017-09: $62.78 per share

- 2017-10: $67.39 per share

- 2017-11: $69.49 per share

- 2017-12: $66.43 per share

- 2018-01: $64.30 per share

- 2018-02: $59.92 per share

- 2018-03: $62.70 per share

- 2018-04: $64.28 per share

- 2018-05: $63.15 per share

- 2018-06: $64.65 per share

- 2018-07: $66.37 per share

- 2018-08: $67.58 per share

- 2018-09: $66.76 per share

- 2018-10: $68.40 per share

- 2018-11: $72.48 per share

- 2018-12: $69.26 per share

- 2019-01: $73.03 per share

- 2019-02: $76.28 per share

- 2019-03: $79.08 per share

- 2019-04: $78.43 per share

- 2019-05: $80.55 per share

- 2019-06: $83.37 per share

- 2019-07: $85.46 per share

- 2019-08: $95.77 per share

- 2019-09: $95.10 per share

- 2019-10: $94.40 per share

- 2019-11: $88.65 per share

- 2019-12: $92.23 per share

- 2020-01: $99.89 per share

- 2020-02: $92.33 per share

- 2020-03: $88.13 per share

- 2020-04: $90.55 per share

- 2020-05: $91.73 per share

- 2020-06: $87.65 per share

- 2020-07: $95.26 per share

- 2020-08: $94.08 per share

- 2020-09: $96.90 per share

- 2020-10: $100.55 per share

- 2020-11: $94.95 per share

- 2020-12: $92.03 per share

- 2021-01: $88.90 per share

- 2021-02: $80.64 per share

- 2021-03: $93.59 per share

- 2021-04: $97.17 per share

- 2021-05: $93.91 per share

- 2021-06: $88.95 per share

- 2021-07: $94.14 per share

- 2021-08: $94.48 per share

- 2021-09: $88.20 per share

- 2021-10: $90.06 per share

- 2021-11: $86.93 per share

- 2021-12: $97.07 per share

- 2022-01: $97.04 per share

- 2022-02: $90.88 per share

- 2022-03: $99.81 per share

- 2022-04: $100.05 per share

- 2022-05: $105.07 per share

- 2022-06: $100.64 per share

- 2022-07: $103.81 per share

- 2022-08: $103.14 per share

- 2022-09: $89.43 per share

- 2022-10: $91.33 per share

- 2022-11: $99.14 per share

- 2022-12: $93.76 per share

- 2023-01: $93.99 per share

- 2023-02: $88.66 per share

- 2023-03: $94.79 per share

- 2023-04: $96.17 per share

- 2023-05: $87.35 per share

- 2023-06: $88.24 per share

- 2023-07: $89.86 per share

- 2023-08: $84.12 per share

- 2023-09: $80.55 per share

- 2023-10: $81.39 per share

- 2023-11: $83.62 per share

- 2023-12: $84.17 per share

- 2024-01: $80.76 per share

- 2024-02: $78.49 per share

- 2024-03: $82.12 per share

- 2024-04: $82.64 per share

- 2024-05: $81.03 per share

- 2024-06: $78.46 per share

- 2024-07: $86.06 per share

- 2024-08: $93.03 per share

- 2024-09: $96.18 per share

- 2024-10: $95.53 per share

- 2024-11: $101.05 per share

- 2024-12: $94.04 per share

- 2025-01: $99.26 per share

- 2025-02: $106.69 per share

- 2025-03: $108.98 per share

- 2025-04: $109.52 per share

- 2025-05: $107.44 per share

- 2025-06: $104.20 per share

- 2025-07: $109.08 per share

- 2025-08: $106.51 per share

- 2025-09: $114.59 per share

- 2025-10: $111.73 per share

- 2025-11: $112.07 per share

- 2025-12: $105.46 per share

- 2026-01: $110.67 per share

- 2026-02: $116.96 per share

- 2026-03: $115.77 per share

- 2026-04: $117.94 per share

- 2026-05: $111.05 per share

- 2026-06: $116.77 per share

- 2026-07: $109.42 per share

- 2026-08: $106.17 per share

- 2026-09: $100.78 per share

- 2026-10: $105.87 per share

## Annual estimated value (USD per share)

- FY2016: low $32.47 per share, central $39.68 per share, high $46.25 per share

- FY2017: low $32.98 per share, central $40.03 per share, high $46.64 per share

- FY2018: low $30.19 per share, central $36.33 per share, high $42.32 per share

- FY2019: low $18.65 per share, central $22.72 per share, high $26.48 per share

- FY2023: low $3.61 per share, central $4.10 per share, high $4.76 per share

- FY2024: low $3.52 per share, central $4.00 per share, high $4.65 per share

- FY2025: low $52.46 per share, central $64.72 per share, high $75.48 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:49.591Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/783325/000078332526000018/wec-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.