Wec Energy Intrinsic Value Calculation – Mizuho Analyst Positively Reaffirms Buy Rating on WEC Energy Group
July 1, 2023
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Mizuho analyst Anthony Crowdell recently reaffirmed his Buy rating on WEC ($NYSE:WEC) Energy Group during an analyst meeting held on June 30, 2023. Crowdell noted that he remains very positive about the company’s outlook for the long term and his rating reflects that sentiment. WEC Energy Group is a diversified energy company that provides energy services to millions of customers across the United States. The company operates through two primary segments: electric and natural gas. Through its electric segment, WEC Energy Group transmits and distributes electric energy to homes and businesses in Wisconsin, Illinois, Michigan, and Minnesota.
Additionally, it sells electric energy to wholesale customers in the Midwest. Furthermore, its natural gas segment distributes natural gas to customers in Wisconsin, Illinois, and Michigan.
Market Price
On Friday, Mizuho Securities USA analyst Paul Fremont issued a positive reaffirmation of his ‘Buy’ rating on WEC Energy Group’s stock. The analyst’s optimism comes despite the current volatile market and the uncertainty in the energy sector. The news was received well by investors, as WEC ENERGY stock opened at $87.4 and closed at $88.2, up by 1.1% from the previous closing price of $87.2.
Despite the slight bump in stock price, Mizuho’s analyst still sees potential for further growth in the company. This positive outlook for the future of the company is likely to attract more investors, leading to further growth in WEC Energy Group’s stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wec Energy. More…
| Total Revenues | Net Income | Net Margin |
| 9.58k | 1.35k | 14.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wec Energy. More…
| Operations | Investing | Financing |
| 1.78k | -3.57k | 1.8k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wec Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 42.8k | 30.81k | 36.99 |
Key Ratios Snapshot
Some of the financial key ratios for Wec Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.7% | 4.9% | 22.9% |
| FCF Margin | ROE | ROA |
| -7.0% | 11.9% | 3.2% |
Analysis – Wec Energy Intrinsic Value Calculation
GoodWhale has conducted an analysis of WEC ENERGY‘s wellbeing and our proprietary Valuation Line suggests the fair value of WEC ENERGY shares is around $107.1. Currently, the stock is trading at $88.2, meaning it is undervalued by 17.7%. This presents an opportunity for investors to take advantage of a discounted price. We took into account a range of factors to determine the fair value of WEC ENERGY such as the company’s financials, performance history, competitive landscape, and industry trends. Our analysis ultimately concludes that WEC ENERGY is undervalued at its current price. More…
Peers
WEC Energy Group Inc, a diversified energy holding company, engages in the business of providing electric and natural gas service through its subsidiaries. Dominion Energy Inc, Central Puerto SA, and Portland General Electric Co are some of WEC Energy Group’s competitors in the energy industry.
– Dominion Energy Inc ($NYSE:D)
Dominion Energy Inc is a leading provider of electricity and natural gas. The company serves more than 6 million customers in the United States. Dominion Energy Inc has a strong portfolio of assets and a commitment to safety, reliability, and customer service. The company’s market cap is 54.69B as of 2022 and its ROE is 7.47%. Dominion Energy Inc is a diversified energy company with a focus on electricity and natural gas. The company is one of the largest producers and transporters of energy in the United States. Dominion Energy Inc is committed to providing affordable, reliable, and clean energy to its customers.
– Central Puerto SA ($NYSE:CEPU)
Central Puerto SA is an Argentine electricity company that supplies power to the central and northern regions of the country. It has a market cap of 1.25B as of 2022 and a Return on Equity of 7.42%. The company generates, transmits, and distributes electricity through a network of over 3,000 kilometers of high-voltage lines and more than 60,000 kilometers of medium- and low-voltage lines. It also has a thermal power plant with a capacity of 1,200 MW.
– Portland General Electric Co ($NYSE:POR)
Portland General Electric Co is an electric utility company that serves customers in Oregon. As of 2022, the company had a market capitalization of $3.9 billion and a return on equity of 9.64%. The company is involved in the generation, transmission, and distribution of electricity, as well as the sale of electricity to retail and wholesale customers. Portland General Electric is the largest electricity provider in Oregon, serving over 800,000 customers.
Summary
Analyst Anthony Crowdell from Mizuho reaffirmed his optimistic outlook towards WEC Energy Group and maintained a Buy rating on June 30th, 2023. He believes that WEC Energy Group is a good investment opportunity with potential for long-term growth and profitability. He highlighted their strong financial performance, efficient management, and positive fundamentals as reasons for his bullish opinion.
Crowdell also noted the company’s potential to benefit from upcoming trends in the energy sector. He advised investors to keep an eye on the company in order to maximize their returns.
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