MGE Energy (MGEE) AI Stock Analysis

• Market Cap: $3.28B
• Dividend Yield: 1.98%
• Average Volume (3M): 142.18K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.40
• Revenue Growth: -1.95%
• EPS Growth: 2.33%
• Country: US
• Employees: 717
• Sector: Utilities
• Sector Strength: 84
• Industry: Diversified Utilities
• EPS (TTM): 3.33
• Shares Outstanding: 36,536,358
• 10 Day Avg. Volume: 150,115
• 30 Day Avg. Volume: 142,184
• PEG Ratio: 11.56
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.92
• Price to Cash Flow (P/CF): 12.30
• P/FCF Ratio: 11.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $80.00
• Price Target Upside: -10.80% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

MGE Energy's overall stock score reflects a stable financial performance with strong profitability and cash flow improvements. While the technical analysis suggests a cautious approach due to bearish indicators, the valuation highlights potential overvaluation concerns. The absence of recent earnings call data and corporate events limits additional insight into future prospects.

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 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. The slight revenue decline is offset by improved profit margins, and cash flow performance shows significant improvement. Continued focus on revenue growth and cash flow efficiency will be key for sustaining financial strength amidst industry challenges.

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
644.09M	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
768.98M	780.01M	727.17M	641.92M	594.11M
	Net Debt
747.68M	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: 89.69
• 50DMA: Positive
• 100DMA: Negative
• 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 89.69 is below the 20-day moving average (MA) of 90.53, below the 50-day MA of 90.96, and below the 200-day MA of 90.56, indicating a bullish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 53.07 is Neutral, neither overbought nor oversold. The STOCH value of 83.66 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
BKH	72 Outperform	$4.31B	15.29	8.13%	4.40%	-8.73%	0.14%
OTTR	71 Outperform	$3.25B	10.84	19.39%	2.44%	-1.38%	2.28%
MGEE	69 Neutral	$3.28B	26.96	10.17%	1.98%	-1.95%	2.33%
NWE	68 Neutral	$3.61B	16.10	7.94%	4.50%	6.45%	13.95%
ALE	64 Neutral	$3.78B	21.02	6.34%	4.39%	-18.62%	-27.88%
Sector *	62 Neutral	$8.60B	12.04	6.29%	4.50%	3.04%	-9.39%
AVA	56 Neutral	$3.31B	18.05	7.09%	4.65%	10.64%	2.28%

MGE Energy Corporate Events

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.