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WEC Energy Group Financial Strength

: 3 (As of Jun. 2021)
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WEC Energy Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

WEC Energy Group Inc displays poor financial strength. Usually this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

WEC Energy Group's Interest Coverage for the quarter that ended in Jun. 2021 was 3.07. WEC Energy Group's debt to revenue ratio for the quarter that ended in Jun. 2021 was 2.18. As of today, WEC Energy Group's Altman Z-Score is 1.24.


Competitive Comparison

For the Utilities - Regulated Electric subindustry, WEC Energy Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

WEC Energy Group Financial Strength Distribution

For the Utilities - Regulated industry and Utilities sector, WEC Energy Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where WEC Energy Group's Financial Strength falls into.



WEC Energy Group Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

WEC Energy Group's Interest Expense for the months ended in Jun. 2021 was $-120 Mil. Its Operating Income for the months ended in Jun. 2021 was $369 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $12,696 Mil.

WEC Energy Group's Interest Coverage for the quarter that ended in Jun. 2021 is

Interest Coverage=-1*Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*368.8/-120
=3.07

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. WEC Energy Group Inc interest coverage is 3.63, which is low.

2. Debt to revenue ratio. The lower, the better.

WEC Energy Group's Debt to Revenue Ratio for the quarter that ended in Jun. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1918.1 + 12695.7) / 6704.8
=2.18

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

WEC Energy Group has a Z-score of 1.24, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.24 is in distress zone. This implies bankrupcy possibility in the next two years.

* 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.


WEC Energy Group  (NYSE:WEC) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

WEC Energy Group has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


WEC Energy Group Financial Strength Related Terms

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


WEC Energy Group Business Description

WEC Energy Group logo
Industry
Utilities » Utilities - Regulated NAICS : 221118 SIC : 4931
Traded in Other Exchanges
Address
231 West Michigan Street, P.O. Box 1331, Milwaukee, WI, USA, 53201
WEC Energy Group's electric and gas utility businesses serve electric and gas customers in its Illinois, Michigan, Minnesota, and Wisconsin service territories. The company also owns a 60% stake in American Transmission Co. WEC's asset mix is approximately 51% electric generation and distribution, 34% gas distribution, 13% electric transmission, and 2% unregulated renewable generation.
Executives
Reese Anthony officer: Vice President and Treasurer 231 WEST MICHIGAN STREET MILWAUKEE WI 53203
Matthews Charles R officer: President & CEO - PGL/NSG 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Kuester Frederick D officer: Sr. Executive Vice Pres. 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Lauber Scott J officer: Sr. EVP and COO 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Liu Xia officer: EVP and CFO ONE ENERGY PLACE PENSACOLA FL 32520
Guc William J officer: Vice President & Controller 130 EAST RANDOLPH DRIVE CHICAGO IL 60601
Green Maria C director C/O INGERSOLL-RAND COMPANY 800-E BEATY STREET DAVIDSON NC 28036
Kelsey Margaret C officer: Executive VP & General Counsel PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: KELSEY MARGARET C a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Krueger Daniel officer: EVP WEC Infrastructure 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Metcalfe Tom officer: Pres. WI Utilities 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Garvin Robert M officer: Exec Vice President - Ext Affs 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Klappa Gale E director, officer: Executive Chairman 231 W. MICHIGAN STREET MILWAUKEE WI 53203
Cunningham Danny L director C/O ACTUANT CORPORATION N86 W12500 WESTBROOK CROSSING MENOMONEE FALLS WI 53051
Stanek Mary Ellen director 14730 WEST JUNEAU BOULEVARD ELM GROVE WI 53122
Culver Curt S director 250 E KILBOURN AVE MILWAUKEE WI 53202

WEC Energy Group Headlines

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