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WEC Energy Group Inc (NYSE:WEC)
Piotroski F-Score
7 (As of Today)

Good Sign:

Piotroski F-Score of 7 is 7, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

WEC Energy Group Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

WEC' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Max: 9
Current: 7

3
9

During the past 13 years, the highest Piotroski F-Score of WEC Energy Group Inc was 9. The lowest was 3. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Net Income was 80.9 + 182.5 + 181.1 + 346.2 = $791 Mil.
Cash Flow from Operations was 385.9 + 357.3 + 220.4 + 695.9 = $1,660 Mil.
Revenue was 991.2 + 1698.7 + 1848.3 + 2194.8 = $6,733 Mil.
Gross Profit was 638.2 + 1108.1 + 1165.7 + 1355.9 = $4,268 Mil.
Average Total Assets from the begining of this year (Mar15)
to the end of this year (Mar16) was
(15135.6 + 28614.5 + 28769.6 + 29355.2 + 29104.6) / 5 = $26195.9 Mil.
Total Assets at the begining of this year (Mar15) was $15,136 Mil.
Long-Term Debt was $8,956 Mil.
Total Current Assets was $1,896 Mil.
Total Current Liabilities was $2,230 Mil.
Net Income was 133 + 126.3 + 122.6 + 195.8 = $578 Mil.

Revenue was 1043.7 + 1033.3 + 1225.1 + 1387.9 = $4,690 Mil.
Gross Profit was 625.3 + 625.9 + 701.6 + 774 = $2,727 Mil.
Average Total Assets from the begining of last year (Mar14)
to the end of last year (Mar15) was
(14800.8 + 14619.8 + 14724.9 + 14905 + 15135.6) / 5 = $14837.22 Mil.
Total Assets at the begining of last year (Mar14) was $14,801 Mil.
Long-Term Debt was $4,169 Mil.
Total Current Assets was $1,326 Mil.
Total Current Liabilities was $1,560 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

WEC Energy Group Inc's current net income (TTM) was 791. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

WEC Energy Group Inc's current cash flow from operations (TTM) was 1,660. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Mar15)
=790.7/15135.6
=0.05224107

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=577.7/14800.8
=0.03903167

WEC Energy Group Inc's return on assets of this year was 0.05224107. WEC Energy Group Inc's return on assets of last year was 0.03903167. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

WEC Energy Group Inc's current net income (TTM) was 791. WEC Energy Group Inc's current cash flow from operations (TTM) was 1,660. ==> 1,660 > 791 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar16)=Long-Term Debt/Average Total Assets from Mar15 to Mar16
=8955.8/26195.9
=0.34187793

Gearing (Last Year: Mar15)=Long-Term Debt/Average Total Assets from Mar14 to Mar15
=4169.2/14837.22
=0.28099604

WEC Energy Group Inc's gearing of this year was 0.34187793. WEC Energy Group Inc's gearing of last year was 0.28099604. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Mar16)=Total Current Assets/Total Current Liabilities
=1896.4/2229.8
=0.85047986

Current Ratio (Last Year: Mar15)=Total Current Assets/Total Current Liabilities
=1326.4/1560.3
=0.85009293

WEC Energy Group Inc's current ratio of this year was 0.85047986. WEC Energy Group Inc's current ratio of last year was 0.85009293. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

WEC Energy Group Inc's number of shares in issue this year was 317.1. WEC Energy Group Inc's number of shares in issue last year was 227.3. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=4267.9/6733
=0.63387791

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2726.8/4690
=0.58140725

WEC Energy Group Inc's gross margin of this year was 0.63387791. WEC Energy Group Inc's gross margin of last year was 0.58140725. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Mar15)
=6733/15135.6
=0.44484527

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Mar14)
=4690/14800.8
=0.31687476

WEC Energy Group Inc's asset turnover of this year was 0.44484527. WEC Energy Group Inc's asset turnover of last year was 0.31687476. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+0+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

WEC Energy Group Inc has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

WEC Energy Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1111111111
Question 2 1111111111
Question 3 0010110101
Question 4 1111111111
Question 5 1101101110
Question 6 0110010101
Question 7 1011011110
Question 8 1001111001
Question 9 0000110111
F-score 6566786867

WEC Energy Group Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Question 1 1111111111
Question 2 1111111111
Question 3 1111000011
Question 4 1111111111
Question 5 1100110000
Question 6 1111000011
Question 7 1111110000
Question 8 0000011111
Question 9 1111100111
F-score 8877664577
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