MGE Energy (MGEE) AI Stock Analysis

• Market Cap: $3.42B
• Dividend Yield: 1.9%
• Average Volume (3M): 114.84K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.38
• Revenue Growth: 6.03%
• EPS Growth: 6.15%
• Country: US
• Employees: 717
• Sector: Utilities
• Sector Strength: 80
• Industry: Diversified Utilities
• EPS (TTM): 1.14
• Shares Outstanding: 36,539,420
• 10 Day Avg. Volume: 114,829
• 30 Day Avg. Volume: 114,837
• PEG Ratio: 17.99
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 81.45
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 17.88
• Enterprise Value/Ebitda: 3.85
• 1Y Price Target: $72.00
• Price Target Upside: -21.82% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

MGE Energy's overall score reflects its strong financial performance, particularly in terms of revenue growth and cash flow generation. The technical analysis indicates stable market trends with a neutral sentiment, while the valuation suggests the stock is moderately priced. The absence of significant earnings call data or corporate events means these components do not affect the score.

MGE Energy Business Overview & Revenue Model

Company Description

MGE Energy, Inc. (MGEE) is a public utility holding company headquartered in Madison, Wisconsin. It primarily operates in the electric and gas utility sectors through its main subsidiary, Madison Gas and Electric Company. The company provides electricity to over 150,000 customers in the Madison area and natural gas service to more than 160,000 customers in various counties across Wisconsin. MGE Energy focuses on delivering safe, reliable, and sustainable energy solutions to its customers while maintaining a commitment to environmental stewardship and community engagement.

How the Company Makes Money

MGE Energy generates revenue primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers in its service areas. The company's revenue model is based on regulated utility operations, where rates are set and approved by the Public Service Commission of Wisconsin. Key revenue streams include customer charges, energy usage charges, and fuel cost adjustments. Additionally, MGE Energy benefits from investments in renewable energy projects, including wind and solar, which are integrated into its energy portfolio to enhance sustainability and meet regulatory requirements. These investments also attract state and federal incentives and tax credits, contributing to the company's overall earnings.

MGE Energy Financial Statement Overview

Summary

MGE Energy presents a solid financial profile with strong profitability and stable balance sheet metrics. Despite a slight revenue decline, profit margins have improved, and cash flow performance shows significant improvement. Continued focus on revenue growth and cash flow efficiency will be key for sustaining financial strength.

Income Statement

MGE Energy has demonstrated strong profitability with a consistent gross profit margin of approximately 95% in 2024. The net profit margin improved slightly from 17.05% in 2023 to 17.81% in 2024, indicating effective cost management. However, there was a slight revenue decline of 1.95% from 2023 to 2024, which is a concern despite the profitability margins. The EBIT margin remained stable at around 21.61%, while the EBITDA margin was 27.42% in 2024, reflecting steady operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.63, indicating a balanced approach to leveraging. Return on equity increased slightly to 9.80% in 2024, signaling effective use of equity to generate profits. The equity ratio stood at 43.50%, suggesting a solid capital structure. While the company's financial health remains stable, careful monitoring of debt levels is advised.

Cash Flow

MGE Energy's free cash flow grew significantly by 163.85% from 2023 to 2024, indicating improved cash generation capacity. The operating cash flow to net income ratio was 2.30 in 2024, showcasing strong cash conversion capabilities. However, the free cash flow to net income ratio was only 0.34, reflecting limitations in cash retained after capital expenditures. Overall, cash flow management appears robust, though further improvements in free cash flow conversion would enhance liquidity.

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

MGE Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGEE, the sentiment is Positive. The current price of 92.1 is above the 20-day moving average (MA) of 91.03, above the 50-day MA of 91.07, and above the 200-day MA of 91.52, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 80.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MGEE.

MGE Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGEE	75 Outperform	$3.42B	26.47	10.62%	1.90%	6.03%	6.15%
OTTR	73 Outperform	$3.34B	11.36	18.38%	2.42%	-2.68%	-3.73%
BKH	70 Outperform	$4.27B	15.05	8.02%	4.46%	3.28%	-3.49%
NWE	68 Neutral	$3.47B	14.59	7.94%	4.62%	4.31%	19.33%
ALE	67 Neutral	$3.78B	20.44	6.49%	4.37%	-11.15%	-23.41%
AVA	67 Neutral	$3.15B	16.66	7.25%	4.89%	3.14%	-2.66%
Sector *	63 Neutral	$8.57B	10.13	4.66%	4.38%	3.79%	-12.91%

MGE Energy Corporate Events

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.

Spark’s Take on MGEE Stock

According to Spark, TipRanks’ AI Analyst, MGEE is a Outperform.

MGE Energy’s overall score reflects its strong financial performance, particularly in terms of revenue growth and cash flow generation. The technical analysis indicates stable market trends with a neutral sentiment, while the valuation suggests the stock is moderately priced. The absence of significant earnings call data or corporate events means these components do not affect the score.

To see Spark’s full report on MGEE stock, click here.

MGE Energy Announces Executive Vice President’s Retirement

On February 21, 2025, Lynn Hobbie, Executive Vice President of Marketing and Communications at Madison Gas and Electric Company, announced her plans to retire by the end of 2025. This announcement may impact the company’s marketing and communications strategies as they prepare for leadership changes in the coming year.

MGE Energy Releases Financial Presentation for Transparency

On February 25, 2025, MGE Energy, Inc. released a financial presentation on its Investor Relations website, which was also furnished to the Securities and Exchange Commission. This release is part of the company’s ongoing efforts to provide transparency and keep stakeholders informed about its financial status.