WEC Energy Group WEC
WEC Energy Group is a regulated utility company that generates, transmits, and distributes electricity and natural gas in Wisconsin, Illinois, Michigan, and Minnesota, operating under a regulated tariff model that provides stable and predictable cash flows. WEC Energy Group is a regulated utility with a stable business, but its high leverage (Net Debt/EBITDA 5.79) and rising interest rates pressure its valuation and financial health. Earnings growth of 19.7% and an attractive dividend (3.76%) offer some support, although the stock trades near its 52-week low.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
WEC Energy Group is a regulated utility company that generates, transmits, and distributes electricity and natural gas in Wisconsin, Illinois, Michigan, and Minnesota, operating under a regulated tariff model that provides stable and predictable cash flows. WEC Energy Group is a regulated utility with a stable business, but its high leverage (Net Debt/EBITDA 5.79) and rising interest rates pressure its valuation and financial health. Earnings growth of 19.7% and an attractive dividend (3.76%) offer some support, although the stock trades near its 52-week low.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.2 |
| Quality / Moat | 3.7 |
| Valuation | 4.1 |
| Growth | 6.2 |
| Dividend | 7.1 |
| Momentum | 4.1 |
| Risk & Context | 8.1 |
OVERALL SCORE: 5.6/10
Context and risks
The sharp rise in 10-year yields (5.17%) is a drag for a regulated utility with high debt (Net Debt/EBITDA 5.79) and long-duration cash flows. The stock's fall to the 7th percentile of its 52-week range reflects this pressure, which is not fully discounted.
News considered in the analysis
- WEC Energy Group (WEC) Stock Looks Reasonable Following Its 41% Three Year Run — Análisis de valoración sin información nueva; no afecta a las perspectivas de la empresa.
- DTE Is Sitting on an AI-Era Power Opportunity — Noticia sobre un competidor (DTE), no sobre WEC; sin impacto directo.
- PCG vs. WEC: Which Stock Is the Better Value Option? — Comparativa genérica sin información nueva sobre WEC.
- Is WEC Energy Stock Underperforming the Dow? — Comparativa de rendimiento bursátil sin información fundamental nueva.
- AI Data Centers Need Enormous Amounts of Power: These 5 Dividend Stocks Provide It — La demanda de electricidad de los centros de datos de IA es una oportunidad de crecimiento para las utilities reguladas, aunque el impacto en WEC aún no está cuantificado.
Verdict: Hold. Regulatory stability and the dividend provide a cushion, but high leverage and a rising rate environment limit near-term upside potential.
Main risk: High leverage (Net Debt/EBITDA 5.79) in a rising interest rate environment, which makes debt refinancing more expensive and pressures the valuation of its long-term cash flows.
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