MGE Energy (MGEE) AI Stock Analysis

• Market Cap: $3.07B
• Dividend Yield: 2.14%
• Average Volume (3M): 150.64K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.35
• Revenue Growth: 8.47%
• EPS Growth: 12.76%
• Country: US
• Employees: 717
• Sector: Utilities
• Sector Strength: 80
• Industry: Diversified Utilities
• EPS (TTM): 0.72
• Shares Outstanding: 36,541,847
• 10 Day Avg. Volume: 127,421
• 30 Day Avg. Volume: 150,643
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 5.56
• Enterprise Value/Gross Profit: 13.41
• Enterprise Value/Ebitda: 13.76
• 1Y Price Target: $84.00
• Price Target Upside: 0.72% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $93.00 ▲(11.51% Upside)

MGE Energy's overall score reflects strong financial performance and positive corporate events, such as dividend increases and earnings growth. However, technical indicators suggest a bearish trend, and the valuation appears high, which tempers the overall score.

MGE Energy Business Overview & Revenue Model

Company Description

MGE Energy, Inc. (MGEE) is a publicly traded holding company based in Madison, Wisconsin, primarily engaged in the utility sector. The company operates through its principal subsidiary, Madison Gas and Electric Company (MGE), which provides electric and natural gas services to residential, commercial, and industrial customers in south-central Wisconsin. MGE Energy focuses on delivering reliable energy services while promoting sustainability through renewable energy initiatives, energy efficiency programs, and environmentally responsible practices.

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 demonstrates robust financial health with strong profitability and stable leverage. Revenue and profit margins are improving, but attention is needed on free cash flow management. Overall, the company is well-positioned in the diversified utilities sector, with a solid financial foundation.

Income Statement

MGE Energy shows strong profitability with a consistent increase in gross profit margin from 34.1% in 2022 to 56.5% TTM. The net profit margin has also improved to 18.2% TTM. Revenue growth is positive at 1.95% TTM, indicating a recovery from previous declines. EBIT and EBITDA margins are stable, reflecting efficient operations.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.61 TTM, showing prudent leverage management. Return on equity is solid at 10.8% TTM, indicating effective use of equity capital. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 2.70 TTM, indicating good cash generation relative to net income. However, free cash flow growth is negative at -11.5% TTM, which could signal potential cash flow challenges. The free cash flow to net income ratio is modest at 0.17 TTM.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	718.32M	676.94M	690.43M	714.52M	606.58M	538.63M
Gross Profit	297.89M	278.83M	269.04M	243.92M	213.55M	203.94M
EBITDA	290.36M	272.68M	276.28M	249.37M	210.97M	209.55M
Net Income	131.05M	120.57M	117.70M	110.95M	105.76M	92.42M
Balance Sheet
Total Assets	2.86B	2.83B	2.68B	2.52B	2.37B	2.25B
Cash, Cash Equivalents and Short-Term Investments	10.57M	21.30M	11.14M	11.60M	17.44M	44.74M
Total Debt	772.13M	787.45M	780.01M	727.17M	641.92M	594.11M
Total Liabilities	1.59B	1.60B	1.54B	1.44B	1.34B	1.28B
Stockholders Equity	1.27B	1.23B	1.14B	1.08B	1.03B	976.00M
Cash Flow
Free Cash Flow	44.25M	40.86M	15.49M	-21.30M	-15.64M	-30.70M
Operating Cash Flow	281.30M	277.78M	237.56M	153.74M	137.53M	172.44M
Investing Cash Flow	-246.23M	-241.49M	-230.02M	-180.15M	-156.97M	-210.41M
Financing Cash Flow	-41.47M	-26.83M	-10.48M	25.54M	-8.76M	59.19M

MGE Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 83.4 is below the 20-day moving average (MA) of 84.86, below the 50-day MA of 86.85, and below the 200-day MA of 91.02, indicating a bearish trend. The MACD of -0.81 indicates Negative momentum. The RSI at 41.56 is Neutral, neither overbought nor oversold. The STOCH value of 47.21 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	79 Outperform	$3.45B	12.10	17.13%	2.48%	-3.69%	-8.25%
BKH	78 Outperform	$4.49B	15.54	8.13%	4.44%	5.41%	-1.89%
NWE	73 Outperform	$3.40B	15.08	7.93%	4.73%	3.78%	7.48%
AVA	72 Outperform	$3.02B	16.72	6.91%	5.27%	2.41%	-9.85%
MGEE	69 Neutral	$3.07B	23.37	10.75%	2.14%	8.47%	12.76%
Sector *	67 Neutral	$17.73B	18.25	8.12%	3.60%	7.33%	12.21%
ALE	62 Neutral	$3.77B	20.52	6.46%	4.46%	-0.44%	-17.46%

MGE Energy Corporate Events

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 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.

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.