This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
WEC Energy Group Inc
WEC : NYSE : Utilities
$55.67 | %
Today's Range: 54.93 - 56.12
Avg. Daily Volume: 2,148,000
02/12/16 - 4:02 PM ET

Financial Analysis


WEC ENERGY GROUP INC's gross profit margin for the fourth quarter of its fiscal year 2015 has increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. WEC ENERGY GROUP INC has very weak liquidity. Currently, the Quick Ratio is 0.40 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 95.16% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)1848.31225.1
EBITDA ($mil)559.4345.7
EBIT ($mil)380.2242.2
Net Income ($mil)179.9121.4


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)49.861.9
Total Assets ($mil)29355.215163.4
Total Debt ($mil)10376.85228.1
Equity ($mil)8685.24450.1


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin30.2728.22
EBITDA Margin30.2628.21
Operating Margin20.5719.77
Sales Turnover0.20.33
Return on Assets2.173.87
Return on Equity7.3513.21
Debt Q4 FY15 Q4 FY14
Current Ratio0.810.92
Debt/Capital0.540.54
Interest Expense107.060.7
Interest Coverage3.553.99


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)315.68225.52
Div / share0.460.39
EPS0.570.53
Book value / share27.5119.73
Institutional Own % n/a n/a
Avg Daily Volume2093165.02150501.0

Valuation


BUY. WEC ENERGY GROUP INC's P/E ratio indicates a premium compared to an average of 19.43 for the Multi-Utilities industry and a premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 2.05 indicates a discount versus the S&P 500 average of 2.51 and a discount versus the industry average of 2.08. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, WEC ENERGY GROUP INC seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WEC 23.90 Peers 19.43   WEC 13.76 Peers 7.72

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

WEC is trading at a premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

WEC is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WEC 18.19 Peers 17.13   WEC 0.96 Peers 2.05

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

WEC is trading at a premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

WEC trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WEC 2.05 Peers 2.08   WEC -8.53 Peers 9.33

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WEC is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WEC is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WEC 3.00 Peers 1.98   WEC 18.59 Peers -9.96

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

WEC is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

WEC has a sales growth rate that significantly exceeds its peers.

 

 

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Latest Stock Upgrades/Downgrades


Top Rated Stocks Top Rated Funds Top Rated ETFs