WEC Energy Group Inc

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WEC : NYSE : Utilities
$60.86 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1786700.0
03/22/17 - 4:01 PM ET

Financial Analysis


WEC ENERGY GROUP INC's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. WEC ENERGY GROUP INC has very weak liquidity. Currently, the Quick Ratio is 0.32 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 remained virtually unchanged only increasing by 3.16% 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.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)1963.01848.3
EBITDA ($mil)554.8586.8
EBIT ($mil)361.7407.6
Net Income ($mil)194.7179.3


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)37.549.8
Total Assets ($mil)30123.229355.2
Total Debt ($mil)10175.610376.8
Equity ($mil)8960.28685.2


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin28.2631.75
EBITDA Margin28.2631.74
Operating Margin18.4322.05
Sales Turnover0.250.2
Return on Assets3.122.17
Return on Equity10.477.35
Debt Q4 FY16 Q4 FY15
Current Ratio0.890.81
Debt/Capital0.530.54
Interest Expense102.6107.0
Interest Coverage3.533.81


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)315.62315.68
Div / share0.50.46
EPS0.610.57
Book value / share28.3927.51
Institutional Own % n/a n/a
Avg Daily Volume1723018.01915631.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 19.96 for the Multi-Utilities industry and a discount compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 2.10 indicates a discount versus the S&P 500 average of 2.98 and a discount versus the industry average of 2.31. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, WEC ENERGY GROUP INC appears to be valued on par with the 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 20.24 Peers 19.96   WEC 8.96 Peers 8.43

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

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

 

Average. 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 valuation on par 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 18.20 Peers 17.67   WEC 4.29 Peers 3.54

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

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

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WEC 2.10 Peers 2.31   WEC 25.00 Peers 18.14

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.

 

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

WEC is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WEC 2.52 Peers 2.44   WEC 26.09 Peers 0.04

Average. 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 valuation on par with its industry on this measurement.

 

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.

 

 

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