WEC Energy Group (WEC Energy Group) Free Cash Flow

: $526 Mil (TTM As of Dec. 2023)

View and export this data going back to 1987. Start your Free Trial

WEC Energy Group's total free cash flow for the months ended in Dec. 2023 was $-283 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Dec. 2023 was $526 Mil.

WEC Energy Group's Free Cash Flow per Share for the months ended in Dec. 2023 was $-0.90. Its free cash flow per share for the trailing twelve months (TTM) ended in Dec. 2023 was $1.66.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Free Cash Flow Growth Rate using Free Cash Flow per Share data.

During the past 13 years, WEC Energy Group's highest 3-Year average Free Cash Flow per Share Growth Rate was 248.80% per year. The lowest was -163.30% per year. And the median was -18.70% per year.

WEC Energy Group Free Cash Flow Historical Data

The historical data trend for WEC Energy Group's Free Cash Flow can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

WEC Energy Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Free Cash Flow

84.70

-42.80

-220.10

-254.20

525.50

WEC Energy Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Free Cash Flow																-613.00	296.70	383.90	128.30	-283.40

WEC Energy Group Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

WEC Energy Group's Free Cash Flow for the fiscal year that ended in Dec. 2023 is calculated as

Free Cash Flow (A: Dec. 2023 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	3018.4	+	-2492.9
	=	526

WEC Energy Group's Free Cash Flow for the quarter that ended in Dec. 2023 is calculated as

Free Cash Flow (Q: Dec. 2023 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	480	+	-763.4
	=	-283

Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $526 Mil.

WEC Energy Group (NYSE:WEC) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Dec23, WEC Energy Group's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Dec23)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	-0.05695238	/	84.17	+	0.0724
	=	7.17 %

Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.

WEC Energy Group Free Cash Flow Related Terms

Thank you for viewing the detailed overview of WEC Energy Group's Free Cash Flow provided by GuruFocus.com. Please click on the following links to see related term pages.

WEC Energy Group (WEC Energy Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » WEC Energy Group Inc (NYSE:WEC) » Definitions » Free Cash Flow

Comparable Companies

EIX DTE ETR FE XEL ES ED PPL AEE PEG NEE SO DUK LSE:NG. AEP PCG D BOM:532555 EXC BOM:532898

Traded in Other Exchanges

WIC:Germany WIC:Germany W1EC34:Brazil

Address

231 West Michigan Street, P.O. Box 1331, Milwaukee, WI, USA, 53201

Website

https://www.wecenergygroup.com

WEC Energy Group's electric and gas utility businesses serve electric and gas customers in Illinois, Michigan, Minnesota, and Wisconsin service territories. The company also owns a 60% stake in American Transmission Co. WEC's asset mix is approximately 49% electric generation and distribution, 36% gas distribution, 10% electric transmission, and 5% unregulated renewable energy.

Executives

Ulice Jr Payne	director	MANPOWERGROUP INC., 100 MANPOWER PLACE, MILWAUKEE WI 53212
Ave M Bie	director	231 WEST MICHIGAN STREET, MILWAUKEE WI 53203
Scott J Lauber	officer: Vice President and Treasurer	231 W. MICHIGAN STREET, MILWAUKEE WI 53203
Joshua M Erickson	officer: VP and Deputy General Counsel	231 WEST MICHIGAN STREET, MILWAUKEE WI 53203
Glen E Tellock	director	1725 SHEPHERD ROAD, CHATTANOOGA TN 37421
William Mastoris	officer: EVP-Cust. Svc. and Operations	231 WEST MICHIGAN STREET, MILWAUKEE WI 53203
Robert M Garvin	officer: Senior Vice President	231 W. MICHIGAN STREET, MILWAUKEE WI 53203
Molly A Mulroy	officer: EVP & Chief Admin Officer	231 WEST MICHIGAN STREET, MILWAUKEE WI 53203
Anthony Reese	officer: Vice President and Treasurer	231 WEST MICHIGAN STREET, MILWAUKEE WI 53203
Tom Metcalfe	officer: Exec. VP - Generation	231 W. MICHIGAN STREET, MILWAUKEE WI 53203
Thomas K Lane	director	51 JOHN F. KENNEDY PARKWAY, SUITE 200, SHORT HILLS NJ 07078
Cristina A Garcia-thomas	director	231 WEST MICHIGAN STREET, MILWAUKEE WI 53203
Charles R Matthews	officer: President & CEO - PGL/NSG	231 W. MICHIGAN STREET, MILWAUKEE WI 53203
Xia Liu	officer: EVP and CFO	ONE ENERGY PLACE, PENSACOLA FL 32520
Gale E Klappa	director, officer: President	231 W. MICHIGAN STREET, MILWAUKEE WI 53203