MGE Energy (MGEE) AI Stock Analysis

• Market Cap: $3.04B
• Dividend Yield: 2.19%
• Average Volume (3M): 117.55K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.29
• Revenue Growth: 8.26%
• EPS Growth: 12.47%
• Country: US
• Employees: 717
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 1.22
• Shares Outstanding: 36,541,847
• 10 Day Avg. Volume: 127,068
• 30 Day Avg. Volume: 117,549
• PEG Ratio: 11.46
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 5.03
• P/FCF Ratio: 83.27
• Enterprise Value/Market Cap: 1.29
• Enterprise Value/Revenue: 5.39
• Enterprise Value/Gross Profit: 9.60
• Enterprise Value/Ebitda: 13.03
• 1Y Price Target: $80.00
• Price Target Upside: -4.99% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.68
• Revenue Forecast (FY): $713.66M

• Rating: 67 Neutral
• Price Target: $92.00 ▲(9.26% Upside)

MGE Energy's overall stock score is driven by its solid financial performance and stable balance sheet, which are the most significant factors. The technical analysis suggests a neutral market sentiment, while the valuation indicates moderate pricing with limited growth potential. The absence of recent earnings call data and corporate events means these factors do not influence the score.

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 customers. The company’s revenue model is driven by regulated utility services, where rates are set by the Wisconsin Public Service Commission (PSC) based on the company's cost of service and allowed return on investment. Key revenue streams include residential, commercial, and industrial electricity sales, along with natural gas sales. Additionally, MGE earns revenue from various energy efficiency programs and renewable energy initiatives, often supported by state and federal incentives. The company may also benefit from partnerships with local governments and businesses to promote sustainability, which can lead to additional funding and revenue opportunities.

MGE Energy Financial Statement Overview

Summary

MGE Energy presents a solid financial profile with strong profitability and a stable balance sheet. The income statement reflects efficient operations and profitability, but the cash flow statement indicates areas for improvement in cash management. The company should focus on enhancing free cash flow generation to support future growth and investment opportunities.

Income Statement

MGE Energy demonstrates strong profitability with consistent gross and net profit margins over the years. The TTM data shows a slight improvement in revenue growth compared to the previous year, indicating a positive trajectory. The EBIT and EBITDA margins are robust, reflecting efficient operational management. However, the revenue growth rate has been volatile, with some periods of decline, which could pose a risk if not managed.

Balance Sheet

The company's balance sheet is stable, with a moderate debt-to-equity ratio indicating a balanced approach to leverage. The return on equity is healthy, showcasing effective use of shareholder funds to generate profits. The equity ratio suggests a solid capital structure, although the debt levels have slightly increased over time, which could impact future financial flexibility.

Cash Flow

Operating cash flow is strong, with a high coverage ratio indicating good cash generation relative to net income. However, the negative free cash flow growth and low free cash flow to net income ratio highlight potential challenges in cash management and investment activities. The company needs to address these issues to ensure long-term cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	725.52M	676.94M	690.43M	714.52M	606.58M	538.63M
Gross Profit	407.22M	278.83M	269.04M	243.92M	213.55M	203.94M
EBITDA	300.05M	272.68M	276.28M	249.37M	210.97M	209.55M
Net Income	134.61M	120.57M	117.70M	110.95M	105.76M	92.42M
Balance Sheet
Total Assets	2.99B	2.83B	2.68B	2.52B	2.37B	2.25B
Cash, Cash Equivalents and Short-Term Investments	10.81M	21.30M	11.14M	11.60M	17.44M	44.74M
Total Debt	841.44M	787.45M	780.01M	727.17M	641.92M	594.11M
Total Liabilities	1.69B	1.60B	1.54B	1.44B	1.34B	1.28B
Stockholders Equity	1.30B	1.23B	1.14B	1.08B	1.03B	976.00M
Cash Flow
Free Cash Flow	-31.77M	40.86M	15.49M	-21.30M	-15.64M	-30.70M
Operating Cash Flow	296.72M	277.78M	237.56M	153.74M	137.53M	172.44M
Investing Cash Flow	-335.72M	-241.49M	-230.02M	-180.15M	-156.97M	-210.41M
Financing Cash Flow	34.62M	-26.83M	-10.48M	25.54M	-8.76M	59.19M

MGE Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 84.20
• 50DMA: Positive
• 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 Neutral. The current price of 84.2 is below the 20-day moving average (MA) of 84.55, above the 50-day MA of 84.15, and below the 200-day MA of 87.29, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 50.19 is Neutral, neither overbought nor oversold. The STOCH value of 60.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MGEE.

MGE Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWE	78 Outperform	$3.99B	18.41	7.62%	4.38%	4.90%	-4.42%
BKH	76 Outperform	$5.26B	17.60	7.90%	4.20%	7.03%	6.64%
OTTR	72 Outperform	$3.55B	12.78	16.10%	2.49%	-3.18%	-8.62%
ALE	68 Neutral	$3.92B	23.62	5.83%	4.29%	-4.30%	-8.49%
AVA	68 Neutral	$3.35B	17.48	7.31%	4.65%	2.14%	-6.51%
MGEE	67 Neutral	$3.04B	22.59	10.80%	2.19%	8.26%	12.47%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

MGE Energy Corporate Events

MGE Energy Enters $50M Note Purchase Agreement

On October 14, 2025, Madison Gas and Electric Company (MGE) entered into a Note Purchase Agreement to issue $50 million in senior notes, split between Series A and Series B, with maturity dates in 2036 and 2055, respectively. The proceeds from these notes are intended to fund capital expenditures and other corporate obligations, potentially impacting MGE’s financial strategy and stakeholder interests.

The most recent analyst rating on (MGEE) stock is a Hold with a $92.00 price target. To see the full list of analyst forecasts on MGE Energy stock, see the MGEE Stock Forecast page.

MGE Energy Increases Quarterly Dividend by 5.6%

On August 15, 2025, MGE Energy announced a 5.6% increase in its regular quarterly dividend to $0.475 per share, payable on September 15, 2025, marking the 50th consecutive year of dividend increases. This milestone underscores the company’s commitment to sustainable growth and reflects the strength of its long-term business strategy, which focuses on providing reliable and affordable energy while delivering value to customers and shareholders.

The most recent analyst rating on (MGEE) stock is a Sell with a $71.00 price target. To see the full list of analyst forecasts on MGE Energy stock, see the MGEE Stock Forecast page.

MGE Energy Inc. Reports Strong Q2 2025 Earnings

MGE Energy Inc., a Wisconsin-based corporation, operates primarily in the energy sector, providing electricity and gas services through its subsidiary, Madison Gas and Electric Company. The company is known for its commitment to sustainable energy practices and is a significant player in the regional energy market.

MGE Energy Reports Strong Q2 2025 Earnings Growth

On August 6, 2025, MGE Energy reported its second-quarter earnings for 2025, showing an increase in GAAP earnings to $26.5 million, or $0.73 per share, up from $23.8 million, or $0.66 per share, in the same period of 2024. The growth was driven by rate base investment and favorable weather conditions, with notable contributions from the operational Darien Solar Project and Paris Battery Energy Storage System. Electric residential sales rose by approximately 5% due to warmer weather, while gas net income remained steady compared to the previous year.

The most recent analyst rating on (MGEE) stock is a Sell with a $71.00 price target. To see the full list of analyst forecasts on MGE Energy stock, see the MGEE Stock Forecast page.