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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
WEC
Primary Facts
Utilities�Regulated Electric
Name:
-
Sector:
693.30M
Industry:
103.01
CEO:
Mr. J. Kevin Fletcher
Total Employees:
Large Cap
Our Technological Advancement Rating
Our Rating:
0.883986984
-0.094164171
Wec Energy Group, Inc. (XNYS:WEC) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
WEC ENERGY GROUP, INC. (XNYS:WEC)
One Month Price Target:
Six Month Price Target :
$103.18
Likely Price in One Year's Time:
Ticker:
$104.01
Likely Trading Range Today Under (Normal Volatility)
$103.38
Price Upper limit ($) :
$105.01
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P135
This week:
$99.02
This month :
$94.08
Other Primary facts
Market Cap:
315.43M
Market Cap Classification:
32.51B
Number of Shares
IPO Date:
B
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-18.05%
$85.14
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$113.03
13.15%
$92.99
$121.55
Medium risk (<10%) entry points
Buy Call
Sell Call
$108.44
Buy Put:
Sell Put:
$84.47
$97.58
$110.26
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Utilities�Regulated Electric
Sharpe Ratio:
WEC, is amongst the top 60% highest yielding stocks in terms of daily returns
Comparison:
1.17%
0.342607625
Sharpe ratio is 34.26% higher than the industry
Average Returns/Yield of
Utilities�Regulated Electric
Daily returns:
1
Weekly returns:
0.04%
Monthly returns:
0.19%
Yearly returns:
9.32%
Comparison of returns:
0.188105228
Classification:
Average annual returns/yield (last 3 years) is 18.81% above industry average
Results of T-Test of Returns:
WEC is a riskier investment compared to Nasdaq (IXIC)
Statistical test of Returns:
0.51
Volatility (measured by Standard Deviation)
Daily Volatility:
& is -30.99% lower than the market/S&P 500 average
Weekly Volatility:
1.91%
Monthly Volatility:
4.26%
Yearly Volatility:
8.53%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
37.18%
-24.04%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -24.04% below long-term volatility
Weekly VaR:
-3.88%
Monthly VaR:
-8.67%
How Much Can the price of
Utilities�Regulated Electric
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: High (50-70%)
Worst case (decline):
$87.67
This translates to price declining to:
-15%
This translates to price declining to:
-60.08%
Severe Crash Probability
-17.34%
What is Value at Risk (VaR)?
Risk Fundamentals
4.87%
WEC is a 22.41% riskier investment compared to the market/S&P 500 & is 4.87% riskier than Nasdaq (IXIC)
WEC is a 22.41% riskier investment compared to the market/S&P 500
Beta Examination of
Utilities�Regulated Electric
0.289
Expected beta in 1 year's time:
0.589
Expected beta in 3 year's time:
0.434
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500--0.29
Beta in relation to Nasdaq (XNAS):
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Beta in relation to all global stocks::
Beta is -42.09% below industry average
Beta Comparison & Analysis
Beta of competitors/peers::
0.144
-0.432
Average Industry Beta:
Beta is -43.21% lower than peers
-0.420946408
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
WACC is -22.09% below industry mean WACC
50.77%
Alpha provided | Alpha Analysis
Alpha provided:
0.613
2.287
2.668
Analysis of Cost of Capital of
Utilities�Regulated Electric
Equity cost of capital:
Alpha is 267% higher than market/& is unsustainably high
-0.219
Unlevered (without debt) cost of capital:
Equity cost of capital is -21.92% below industry mean WACC
Before-tax cost of debt:
2.55%
After-tax cost of debt:
3.10%
Overall debt rating:
2.45%
Weighted average cost of capital (WACC):
3.10%
-22.09%
Key Per-Share Metrics & Analysis
Revenue per share:
Present value of the expected future dividends only: $97.33
Revenue growth rate per share of (3Y):
Price to sales ratio is 31.18% above the industry mean
-789.85%
EPS:
One Billion Three Hundred Fifty-Three Million Two Hundred Sixteen Thousand One Hundred Fifty Dollars
Expected Annual growth rate of EPS (3Y):
-
-173.01%
Free cash flow (FCF) per share:
Price to book ratio is 52.87% above the industry mean
-
2.855792477
Debt per share
Debt repayment rate in last quarter: 3.31%
EBITDA per share
Each employee generates -61% less EBITDA than industry average revenue per employee
Valuation Analysis Today of
Utilities�Regulated Electric
P/E Ratio:
Sustainable growth rate is 50.77% above industry average
P/E Ratio of Competitors/Peers:
23.82
-0.139725313
118.7830882
-0.132789006
$1.71
Share value as per dividend discount (DDM) model: $134.57
P/S (Price to Sales ratio):
$27.05
0.31175926
P/B (Price to book value ratio):
Price to sales ratio is 31.18% above the industry mean
-
-
Net income growth rate (3Y):
Annual revenue growth rate is -789.85% below industry average
-872.84%
Dividend Analysis
Net income growth rate is -872.84% lower than the industry average net income growth rate
Dividend payout rate: 16.92%
$0.73
Previous Dividend: $0.73
Previous adjusted dividend: $0.73
Previous Dividend: $2.81
Expected next dividend best case: $0.76
Expected next dividend worst case: $0.69
Average dividend payment (long-term): $0.66
Average dividend increase/decrease (growth rate) % per period: 2.18%
Expected next dividend payment date: 30/08/2022
Expected next dividend record date: 08/11/2022
Expected next dividend declaration date: 20/07/2022
Previous dividend payment date: 06/01/2022
Previous dividend record date: 13/05/2022
Dividend History:
Previous dividend declaration date: 21/04/2022
2022-02-11--$0.73
2021-08-12--$0.68
2022-05-12--$0.73
2021-11-10--$0.68
2021-05-13--$0.68
-3.180102121
In-depth Debt & Leverage Analysis
Debt to equity ratio:
133.89%
Net debt to equity ratio:
The remaining useful life of property plant & equipment is: 12.5 years
Debt to assets ratio:
38.73%
Net debt to assets ratio:
119.88%
-44.83%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -44.83% below industry average
1.62
Looking forward:
Debt growth rate:
1.5x
696.28%
3.31%
Analysis of Key Statistics
Correlation of price movement with the market:
15.47612412
Statistical significance of correlation:
-0.28%
Average Correlation of the industry with the market:
0.509
-14.72%
R Squared (percentage of price movement explained by movement of the market):
0.509
Correlation of price movement with Nasdaq (^IXIC):
0.259
Covariance of price movement with the market:
0.028
Kurtosis
0.031
20.698
Skewness of returns:
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
-0.847
Fundamental Analysis & Dupont Analysis of
Utilities�Regulated Electric
Gross Profit Margin Ratio:
3.12B
Operating Profit Margin Ratio:
Net profit margin is 36.72% higher than the industry
83.03%
Net Profit Margin Ratio:
3.12B
Effective Tax Rate:
-
-0.220507144
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is 50.61% higher than the industry
32.44%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is 83.03% higher than the industry
50.61%
Financial Leverage:
Interest coverage ratio is 162.40% more than industry average
Current Ratio:
Return on equity (ROE) is 32.44% higher than the industry
-0.672015201
Cash Conversion Cycle (days):
$42.84
-0.994072721
Current ratio is -67.20% below industry average
Stock based compensation to net income ratio:
Equity growth rate per share is 285.58% higher than the industry
In-depth Efficiency Analysis
Revenue generated per employee:
Cash conversion cycle is -99.41% below industry average
-0.552289719
EBITDA generated per employee:
Each employee generates -55% less revenue than industry average revenue per employee
-0.607300146
Profit generated per employee:
$10.05
-52%
Free cash flow (FCF) generated per employee:
Each employee generates -52% less net income/profit than industry average revenue per employee
-4.033278452
Assets/Capital per employee
Each employee generates -403% less free cash flow than industry average revenue per employee
-4.033278452
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
Utilities�Regulated Electric
$129.12
Eversource Energy (XNYS:ES)
CONSOLIDATED EDISON, INC. (XNYS:ED)
AMERICAN WATER WORKS COMPANY, INC. (XNYS:AWK)
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED (XNYS:PEG)
EDISON INTERNATIONAL (XNYS:EIX)
FIRSTENERGY CORP. (XNYS:FE)
DTE ENERGY COMPANY (XNYS:DTE)
AMEREN CORPORATION (XNYS:AEE)
Current Analyst Ratings
$4.29
Strong buy�13%
Buy�4%
Hold�25%
Sell�4%
Strong sell�0%
Income Statement
Period:
3/31/2022
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
8.53B
5.41B
148%
-
-
-
-
1.31B
6.72B
-
469.20M
1.09B
151%
252.50M
- 208300.00K
74%
252.50M
Statement of Cash Flow
Date:
Period:
568.00M
Differed Income Tax :
278.10M
Stock Based Compensation :
103.80M
Change in Working Capital :
-
Accounts Receivables:
172.40M
Other Working Capital:
- 293800.00K
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
- 45500.00K
Investments in PP&E:
1.08B
Net Acquisitions:
-
Purchases of Investments:
- 21100.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
Value
3/31/2022
2022
Q1
33.80M
-
33.80M
1.64B
368.80M
524.30M
2.56B
27.11B
3.05B
-
1.82B
-
4.43B
36.41B
-
38.97B
693.70M
1.61B
-
-
957.30M
3.26B
13.51B
5.94B
24.27B
-
27.53B
3.20M
7.11B
- 3200.0K
Value
1.31B
4.13B
11.27B
38.80B
-
15.13B
-
-
- 317100.00K
- 338200.00K
- 463300.00K
-
- 23400.00K
- 229600.00K
9.80M
- 706500.00K
-
32.10M
119.60M
87.50M
1.08B
- 383500.00K
Our Proprietary Portfolio Rating
Our Rating:
-3.356763279
Price Forecast/Expected Price in Next 5 Years of
Utilities�Regulated Electric
2023
2024
2025
2026
2027
119.5522686
$119.55
$121.88
$124.25
$126.66