Essay about Wisconsin Energy Corp

Submitted By hkdavidv
Words: 943
Pages: 4

(WEC-NYSE)

Summary
Wisconsin Energy Corporation reported their net income of $126.3 million or 56 cents a share for the third quarter of 2014 and their third quarter 2014 revenues totaled at $1.03 billion. With the steadily improving Wisconsin economy, the rising customer base and higher demand for utility services is showing strong potential growth in the near future. At the end of September 2014 alone, the company was serving approximately 4,400 more electric customers and about 6,700 more natural gas customers than a year ago. With their current acquisition proposal of Integrys Energy group (TEG-NYSE), their performance in the future is bound to exceed expectations. The proposed combination of Wisconsin Energy and Integrys will bring together two strong and well-regarded utility operators with complementary geographic footprints to create a larger, more diverse Midwest electric and natural gas delivery company with the operational expertise, scale and financial resources to meet the region’s future energy needs.

Their recent performance in the past year has made their stock a solid performer in the market. For the first nine months of 2014, the company recorded net income of $466.9 million or $2.05 a share, up from $433.1 million or $1.88 a share a year ago. The company’s ticker symbol is WEC and their shares are traded primarily on the New York Stock Exchange (NYSE). Their stock is currently priced at 50.87 on the market and is up 1.46 percent from December 5, 2014. Some of their major shareholders include Gale E. Klappa, the CEO of the company, The Vanguard Group, Inc., State Street Corporation, and BlackRock Fund Advisors, which hold about 36 million shares of the Wisconsin Energy Corp. The company operates largely within the Utility – Electric Power sector and their market capitalization comes in at $11.47 billion. I recommend that you 100 percent buy this stock.
Summary Data

Company Overview
Wisconsin Energy Corporation, based in Milwaukee, is a diversified holding company that generates and distributes electric energy to more than 1.1 million customers in Wisconsin and Michigan’s Upper Peninsula. The company operates in two segments, Utility Energy and Non-Utility Energy through its subsidiaries We Energies, W.E. Power, and WISPARK. The company provides electric utility services to customers in the paper, foundry, food products, and machinery production industries, as well as to the retail chains. It also provides retail gas distribution services in Wisconsin, as well as transports customer-owned gas to paper, food products, and fabricated metal products industries; and generates, distributes, and sells steam. In addition, the company invests in and develops real estate, including business parks and other commercial real estate projects primarily in southeastern Wisconsin. Wisconsin Energy Corp., a component of the S&P 500, has nearly $15 billion of assets, 4,300 employees and approximately 40,000 stockholders of record.

Investment Analysis
With the economy in Wisconsin Energy Corporation’s service regions prospering at a constant rate, the demands for their utility services will continue to increase as more customers become financially stable and find it more economically viable to consume more gas and electric. The unemployment rate in Wisconsin also contributed to the growing economy as it decreased to 5.5 percent, coming in lower than the nationwide average. A large percentage of industrial and commercial customers used .1 percent more electricity from last year’s third quarter and retail consumption of electricity rose by 1.8 percent. This is just an example of the slow yet steady growth going on in the company today.
Investment Data

With Wisconsin Energy Corporation’s proposed expansion with Integrys Energy Group, Inc., they would combine to become one of the largest utility companies in the Midwest. The joined entity would be able to help the company expand its reach into different service