WEC (WEC Energy Group Inc) vs S&P 500 Comparison

WEC

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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WEC

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

WEC

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

WEC

SRE

ENGI

SREN

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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WEC Energy Group Inc
Glance View

Economic Moat

None

Market Cap

34.2B USD

Industry

Utilities

In the heartland of America's Midwest, WEC Energy Group Inc. operates as a cornerstone utility company, weaving a complex web of energy solutions that power millions of homes and businesses. Born from the 2015 merger of two longstanding giants, Wisconsin Energy Corporation and Integrys Energy Group, WEC has become one of the nation's premier electric and natural gas delivery firms. At its core, WEC Energy navigates a dynamic energy landscape by leveraging its vast network of subsidiaries, including Wisconsin Electric Power Company and Peoples Gas, to provide reliable services in Illinois, Wisconsin, Michigan, and Minnesota. This diverse geographical footprint allows WEC to mitigate regional risks and maintain steady cash flows amid regulatory challenges and fluctuating energy demands. WEC Energy Group makes money by ensuring that electricity and natural gas flow seamlessly to its customers. The company primarily operates under a regulated utility model, which offers it a measure of stability through set rates approved by public service commissions. These tariffs enable WEC to earn a predictable return on its substantial infrastructure investments, which include maintaining, upgrading, and expanding its distribution systems. Additionally, WEC explores renewable energy avenues to meet evolving regulatory frameworks and consumer expectations, investing in solar and wind projects. This strategic emphasis not only positions the company to capture emerging growth opportunities but also reflects a prudent approach to long-term sustainability, balancing traditional energy operations with the future of green energy.

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WEC Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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WEC

vs

S&P 500

Stocks Performance
WEC vs S&P 500

Performance Gap
WEC vs S&P 500

Performance By Year
WEC vs S&P 500

Competitors Performance
WEC Energy Group Inc vs Peers

WEC Energy Group Inc
Glance View

Company

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WEC vs S&P 500

Stocks Performance WEC vs S&P 500

Performance Gap WEC vs S&P 500

Performance By Year WEC vs S&P 500

Competitors Performance WEC Energy Group Inc vs Peers

WEC Energy Group Inc Glance View

Company

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Tools

Stocks

WEC

vs

S&P 500

Stocks Performance
WEC vs S&P 500

Performance Gap
WEC vs S&P 500

Performance By Year
WEC vs S&P 500

Competitors Performance
WEC Energy Group Inc vs Peers

WEC Energy Group Inc
Glance View