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WEC Energy Group Altman Z-Score

: 1.25 (As of Today)
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Warning Sign:

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

WEC Energy Group has a Altman Z-Score of 1.25, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for WEC Energy Group's Altman Z-Score or its related term are showing as below:

NYSE:WEC' s Altman Z-Score Range Over the Past 10 Years
Min: 0.68   Med: 1.18   Max: 1.82
Current: 1.24

0.68
1.82

During the past 13 years, WEC Energy Group's highest Altman Z-Score was 1.82. The lowest was 0.68. And the median was 1.18.


WEC Energy Group Altman Z-Score Historical Data

The historical data trend for WEC Energy Group's Altman Z-Score 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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.19 1.19 1.14 1.29 1.20

WEC Energy Group Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.25 1.33 1.20 1.25 1.23

Competitive Comparison

For the Utilities - Regulated Electric subindustry, WEC Energy Group's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

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

* The bar in red indicates where WEC Energy Group's Altman Z-Score falls into.



WEC Energy Group Altman Z-Score Calculation

Altman 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.

WEC Energy Group's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.029+1.4*0.177+3.3*0.0525+0.6*1.082+1.0*0.2104
=1.25

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2021:
Total Assets was $37,795 Mil.
Total Current Assets was $2,278 Mil.
Total Current Liabilities was $3,374 Mil.
Retained Earnings was $6,688 Mil.
Pre-Tax Income was 329.8 + 585.2 + 276.8 + 314 = $1,506 Mil.
Interest Expense was -120 + -119.5 + -117.9 + -122 = $-479 Mil.
Revenue was 1676.2 + 2691.4 + 1933.4 + 1651 = $7,952 Mil.
Market Cap (Today) was $28,960 Mil.
Total Liabilities was $26,765 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(2278.1 - 3373.9)/37794.9
=-0.029

X2=Retained Earnings/Total Assets
=6688.2/37794.9
=0.177

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1505.8 - -479.4)/37794.9
=0.0525

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=28960.044/26764.5
=1.082

X5=Revenue/Total Assets
=7952/37794.9
=0.2104

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

WEC Energy Group has a Altman Z-Score of 1.25 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


WEC Energy Group  (NYSE:WEC) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


WEC Energy Group Altman Z-Score Related Terms

Thank you for viewing the detailed overview of WEC Energy Group's Altman Z-Score 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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