Orin
WECNYSE·Regulated Electric

WEC Energy Group, Inc. WEC

Market cap $33.1BP/E 19.5× trailingGross margin 62.0%Reports Thu 29 Oct, before the open
$101.48
+0.31 (+0.31%)live 09:40 ET
52-wk $101.00 – $119.91
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Orin's take
0.62conviction · moderate
Refreshed 19 Aug · take v7. A new filing or a print queues the next refresh.

WEC Energy's Q2 2026 EPS of $0.91 (up $0.15 year-over-year) and reaffirmed 2026 guidance of $5.51–$5.61 per share signal that the $37.5B capex program is beginning to convert into earnings growth after a flat FY2025 at $4.83 EPS, with FY2025 revenue up 13.96% to $9.8B and gross margin expanding to 50.5%. However, FY2025 FCF of -$1.0B and total debt of $22.3B reflect the heavy balance-sheet cost of this build-out, and at $109.34 the stock trades at a 10% P/E premium to the peer median of 19.07x while sitting below both its 50-day ($113.01) and 200-day ($112.04) moving averages.

With smart money essentially neutral at -0.0001 as of 2026-06-30 and the MACD histogram only刚刚 turning positive, the fundamental improvement is real but not yet reflected in technicals or flows; the risk/reward remains balanced pending evidence that FCF stabilizes and the stock reclaims its trend lines.

What could go wrong

  • Capex execution and FCF strain. FY2025 capex of $4.4B drove FCF to -$1.0B; sustained negative FCF could pressure the balance sheet and limit financial flexibility if rate recovery lags spending.
  • Rising debt burden. Total debt grew to $22.3B in FY2025 from $20.3B in FY2024; higher interest costs could offset margin gains if rates remain elevated.
  • Valuation premium. At a 10.25% P/E premium and 56.14% P/S premium to peer medians, any earnings shortfall versus 2026 guidance could trigger a sharper de-rating.
  • Data center demand disappointment. The $37.5B capex plan through 2030 is predicated on AI-driven load growth; slower-than-expected data center buildout could leave the plan oversized.

What would change my mind

Technical stabilization. Stock reclaims and holds above the 50-day moving average of $113.01 on volumebullish
FCF trajectory improvement. Quarterly or annual FCF turns positive as capex peaks and rate base growth flows through to revenuebullish
Earnings delivery. 2026 full-year EPS tracks to the upper end of $5.51–$5.61 guidance, confirming capex-to-earnings conversionbullish
Data center demand softening. AI data center load growth disappoints or large customer commitments are delayedbearish

Where this comes from: MarketBeat Q2 earnings call highlights, 2026-08-01 · FMP FY2025 + derived_metrics · FMP FY2025 · peer_relative. Orin's read on WEC; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$2.5B0.1% of fund
State Street$2.5B0.1% of fund
Vanguard Portfolio Management$2.0B0.1% of fund
Geode Capital Management$1.1B0.1% of fund
Bank Of America /De/$1.0B0.1% of fund
Wells Fargo & Company/Mn$1.0B0.2% of fund

95 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 162 Form 4 filings, net $862K. Of the 50 on hand, 0 were open-market purchases and 14 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Utilities
MetricNowOwn medianSector
P/E19.5×21.0×25.9×
EV/EBITDA13.6×13.9×
P/S3.25×3.46×
P/B2.3×2.5×

Its P/E sits 20th percentile of its own last 5 years (−1.17σ from its own mean).

What Wall Street published

35 firms · 2026-09-23
Consensus target

$120

$114$127 · +18% against today's price

How they rate it
  • 10 buy or overweight
  • 21 hold
  • 4 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 17.4× of 9 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
WECWEC Energy Group, Inc.$33B19.5×13.6×62.0%16.7%12%
AEEAmeren Corporation$28B17.4×11.8×41.1%17.9%12%
CMSCMS Energy Corporation$20B18.7×12.4×69.7%11.6%11%
DTEDTE Energy Company$26B19.3×12.5×36.7%8.1%11%
EDConsolidated Edison, Inc.$38B16.8×9.9×76.0%12.5%9%
ESEversource Energy$24B16.8×9.7×35.2%10.4%9%
ETREntergy Corporation$46B25.1×13.8×38.9%13.5%10%
FEFirstEnergy Corp.$25B23.3×11.6×53.4%6.9%9%
PCGPG&E Corporation$33B9.0×9.2×56.2%12.3%10%
PEGPublic Service Enterprise Group Incorporated$34B16.7×13.3×85.4%16.0%12%

The median is of the 9 peers listed above and nothing else — check it against the column. This company trades 11.8% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 20.2×FY25 21.7×

What its sector has traded at

Utilities
FY14 14.0×FY26 27.4×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$153$114.78 · +33%2026-06-10
Levered DCF$235$114.78 · +105%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $101.48
52-week range$101 – $120
Analyst targets$114 – $127
Standard DCF$153 as of 2026-06-10, when it was $114.78
Levered DCF$235 as of 2026-06-10, when it was $114.78
At own 5y-median P/E (21×)$109
At 5y P/E range (19–24×)$101 – $122
At sector P/E (26×)$135

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.