MGE Energy (MGEE) AI Stock Analysis

• Market Cap: $3.21B
• Dividend Yield: 2.05%
• Average Volume (3M): 93.04K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.39
• Revenue Growth: 6.03%
• EPS Growth: 6.15%
• Country: US
• Employees: 717
• Sector: Utilities
• Sector Strength: 84
• Industry: Diversified Utilities
• EPS (TTM): 1.14
• Shares Outstanding: 36,539,420
• 10 Day Avg. Volume: 83,905
• 30 Day Avg. Volume: 93,042
• PEG Ratio: 4.47
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -119.55
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 8.22
• Enterprise Value/Ebitda: 3.11
• 1Y Price Target: $71.50
• Price Target Upside: -18.69% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: $94.00 ▲(6.90%Upside)

MGE Energy's strong financial performance is the most significant factor contributing to the overall score, supported by robust revenue growth and profitability. However, weak technical indicators and a relatively high valuation moderate the overall score, indicating potential risks in market momentum and stock value.

MGE Energy Business Overview & Revenue Model

Company Description

MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in Wisconsin. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other. The company generates, purchases, and distributes electricity; owns or leases electric generation facilities located in Wisconsin and Iowa; and plans, constructs, operates, maintains, and expands transmission facilities to provide transmission services. It also generates electricity from coal-fired, gas-fired, and renewable energy sources, as well as purchases power under short and long-term commitments. As of December 31, 2021, the company generated and distributed electricity to 159,000 customers in Dane County, Wisconsin; and purchased and distributed natural gas to 169,000 customers in seven Wisconsin counties. MGE Energy, Inc.is headquartered in Madison, Wisconsin.

How the Company Makes Money

MGE Energy generates revenue primarily through the sale of electricity and natural gas to its customer base, which includes residential, commercial, and industrial clients. The company's key revenue streams include electricity sales, natural gas sales, and transmission services. MGE Energy owns and operates a variety of energy generation assets, including natural gas-fired plants and renewable energy sources like wind and solar, which contribute to its electricity production. Additionally, the company earns revenue from its investment in American Transmission Company, which provides transmission services. MGE Energy's financial performance is influenced by regulatory decisions, energy market conditions, and its ongoing investments in sustainable energy infrastructure.

MGE Energy Financial Statement Overview

Summary

MGE Energy exhibits robust financial health with consistent revenue growth and strong profitability margins. Effective cash flow management and a stable financial position with moderate leverage contribute to its strong financial performance.

Income Statement

MGE Energy has demonstrated strong revenue growth, with TTM revenue reaching $704.58M, up from $676.94M in the prior year. The gross profit margin improved to 56.45% TTM, indicating efficient cost management. The net profit margin is healthy at 18.22% TTM. Both EBIT and EBITDA margins have shown positive results, standing at 22.51% and 36.27% TTM, respectively, reflecting strong operating performance.

Balance Sheet

The company's debt-to-equity ratio is 0.61, suggesting a relatively moderate level of leverage. The return on equity (ROE) stands at 10.19%, signifying efficient use of equity to generate profits. The equity ratio is a solid 44.28%, providing a strong foundation with sufficient equity to cover assets. Despite these strengths, maintaining a balanced approach to leverage will be crucial for future stability.

Cash Flow

MGE Energy's cash flow position is strong, with an operating cash flow to net income ratio of 2.26 TTM, indicating efficient cash generation. The free cash flow increased significantly to $50.02M TTM, and the free cash flow to net income ratio is 0.39, showing improvement in cash reserves. The free cash flow growth rate is 22.41% over the previous year, highlighting a positive cash flow trend.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
704.58M	676.94M	690.43M	714.52M	606.58M	538.63M
	Gross Profit
397.77M	278.83M	269.04M	243.92M	213.55M	203.94M
	EBIT
158.62M	146.26M	146.38M	137.74M	117.29M	110.00M
	EBITDA
255.55M	272.68M	276.28M	249.37M	210.97M	209.55M
	Net Income Common Stockholders
128.35M	120.57M	117.70M	110.95M	105.76M	92.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.31M	21.30M	11.14M	11.60M	17.44M	44.74M
	Total Assets
2.84B	2.83B	2.68B	2.52B	2.37B	2.25B
	Total Debt
767.81M	787.45M	780.01M	727.17M	641.92M	594.11M
	Net Debt
732.51M	766.15M	768.87M	715.56M	624.48M	549.37M
	Total Liabilities
1.58B	1.60B	1.54B	1.44B	1.34B	1.28B
	Stockholders Equity
1.26B	1.23B	1.14B	1.08B	1.03B	976.00M
Cash Flow		Free Cash Flow
50.02M	40.86M	15.49M	-21.30M	-15.64M	-30.70M
	Operating Cash Flow
289.83M	277.78M	237.56M	153.74M	137.53M	172.44M
	Investing Cash Flow
-245.65M	-241.49M	-230.02M	-180.15M	-156.97M	-210.41M
	Financing Cash Flow
-27.65M	-26.83M	-10.48M	25.54M	-8.76M	59.19M

MGE Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 87.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGEE, the sentiment is Negative. The current price of 87.93 is below the 20-day moving average (MA) of 89.76, below the 50-day MA of 89.78, and below the 200-day MA of 91.49, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 41.23 is Neutral, neither overbought nor oversold. The STOCH value of 38.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGEE.

MGE Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OTTR	74 Outperform	$3.25B	11.05	18.38%	2.71%	-2.68%	-3.73%
BKH	68 Neutral	$4.12B	14.51	8.02%	4.76%	3.28%	-3.49%
NWE	68 Neutral	$3.17B	13.43	8.27%	5.11%	4.31%	19.33%
ALE	67 Neutral	$3.75B	20.31	6.49%	4.51%	-11.15%	-23.41%
AVA	67 Neutral	$3.01B	15.89	7.25%	5.25%	3.14%	-2.66%
Sector *	64 Neutral	$8.59B	10.39	4.24%	4.64%	4.07%	-13.04%
MGEE	62 Neutral	$3.21B	24.89	10.62%	2.05%	6.03%	6.15%

MGE Energy Corporate Events

MGE Energy Holds Annual Shareholders Meeting

MGE Energy held its Annual Meeting of Shareholders on May 20, 2025, where key decisions were made regarding the company’s governance and operations. The meeting resulted in the election of three Class III Directors, the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and a nonbinding advisory vote on executive compensation, with the majority of votes supporting the proposed measures.

The most recent analyst rating on (MGEE) stock is a Sell with a $68.00 price target. To see the full list of analyst forecasts on MGE Energy stock, see the MGEE Stock Forecast page.

MGE Energy Releases Financial Presentation Ahead of AGA Forum

On May 16, 2025, MGE Energy, Inc. posted a financial presentation on its Investor Relations website. The company will also participate in the AGA Financial Forum in Marco Island, Florida, from May 17-20, 2025, which may impact investor relations and stakeholder engagement.

The most recent analyst rating on (MGEE) stock is a Sell with a $68.00 price target. To see the full list of analyst forecasts on MGE Energy stock, see the MGEE Stock Forecast page.