WEC Energy Group, Inc. (WEC) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: WEC Energy Group, Inc.

Updated on October 30, 2026 · accounts published on October 29, 2026

Reading of October 29, 2026: A regulated utility with rising margins and a stretched balance sheet

WEC Energy trades at a P/E of 22.2, 2 % below its ten-year median, with a 3.3 % dividend raised for 11 straight fiscal years.

• Is WEC Energy expensive or cheap? WEC Energy trades at a P/E of 22.2, 2 % below its ten-year median and 7 % above the utility sector median.
• How is the business doing? Revenue grew 14 % over the last 12 months, and the 24.8 % operating margin beats the 2014-2025 average of 22 %.
• How strong is the balance sheet? Net debt was 5.5× EBITDA in fiscal 2025, right at the sector's healthy limit, and interest coverage of 2.7× falls short of 3×.
• What to expect from the next earnings? Analysts expect EPS of $1.29 for the quarter reported on February 4, 2027, after a 21.5 % beat last quarter.
• Is the dividend sustainable with this debt? The fiscal 2025 payout of 74 % stays under the 80 % ceiling, backed by dividend growth of 7.7 % a year since 2015.

Is WEC Energy expensive or cheap?

Over the last 12 months WEC Energy has traded at a P/E of 22.2. That is close to its ten-year median of 22.7 and inside a decade range of 15.6 to 31.1. Over the last decade it traded at a lower P/E 44 % of the time, so the multiple sits near the middle of its own history. The sector median P/E across 83 utilities is 20.7, which puts WEC Energy at a 7 % premium. A P/B of 0.9× and an EV/EBITDA of 9.5× do not look stretched either. The shares are up 3 % over 12 months and trade 4 % below their 52-week high of $118.85.

How is the business doing?

Revenue rose 14 % year on year over the last 12 months, which is fast for a regulated utility. Profitability kept pace: the operating margin of 24.8 % is above both fiscal 2025 (24.2 %) and the 12-year average of 22.0 %. Net margin is 17.5 %. Returns on capital are modest, as is normal in such a capital-heavy sector. ROIC of 5.3 % over the last 12 months is 1.3 points above the sector median of 4.0 %, but it has not reached 10 % in any of the last ten fiscal years. ROE of 8.6 % falls inside the regulated range of 8 % to 12 %.

How strong is the balance sheet?

In fiscal 2025 net debt came to $71.24 per share, equal to 62 % of the current share price. That is 5.5× EBITDA, exactly the ceiling usually considered healthy for utilities. Interest coverage of 2.7× is below the 3× benchmark, so operating profit covers interest with less room than ideal. Short-term liquidity is also thin, with a current ratio of 0.48 over the last 12 months. The Piotroski score of 6 out of 9 points to average financial health. Debt is the main constraint on this business, and it leaves little room if interest costs rise.

What to expect from the next earnings?

On October 29, 2026 WEC Energy reported EPS of $1.18 against $0.97 expected. That 21.5 % surprise is the largest of the last eight quarters, and the company has beaten EPS estimates in 7 of those 8. Even so, the 2026 EPS consensus has not moved in the last 30 days and holds at $5.60 across 10 analysts, while the 2026 revenue consensus rose 1.4 %. Of the 35 analysts covering the company, 21 rate it hold, 10 buy and 3 sell. The next report is due on February 4, 2027, with EPS of $1.29 expected.

Is the dividend sustainable with this debt?

Utilities are regulated, slow-growing businesses that people own for the dividend. That is why debt, interest rates and payout consistency matter more here than growth multiples. WEC Energy has raised its dividend for 11 consecutive fiscal years, by 7.7 % a year over 2015-2025, above the 4 % healthy mark. EPS grew 4.7 % a year over 2020-2025, inside the healthy range of 4 % to 7 %. The fiscal 2025 payout of 73.7 % passes the 80 % test, but only just. With interest coverage at 2.7× and net debt at the limit, the dividend depends on earnings continuing to grow.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.