NasdaqGS:MGEE

Stock Analysis Report

Executive Summary

MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in Wisconsin.

Snowflake

Fundamentals

Average dividend payer with adequate balance sheet.

Risks

  • MGE Energy is not covered by any analysts.

Similar Companies

Share Price & News

How has MGE Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

NasdaqGS:MGEE

0.6%

US Electric Utilities

0.2%

US Market


1 Year Return

13.1%

NasdaqGS:MGEE

13.6%

US Electric Utilities

-0.7%

US Market

MGEE matched the Electric Utilities industry (12.7%) over the past year.

MGEE outperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

MGEEIndustryMarket
7 Day1.7%0.6%0.2%
30 Day3.3%1.7%-2.7%
90 Day5.9%3.9%1.6%
1 Year15.4%13.1%17.5%13.6%1.6%-0.7%
3 Year41.7%33.2%34.9%21.3%40.0%30.9%
5 Year111.5%88.5%76.0%45.8%53.8%36.8%

Price Volatility Vs. Market

How volatile is MGE Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MGE Energy undervalued based on future cash flows and its price relative to the stock market?

30.67x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

MGE Energy's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

MGE Energy's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

MGE Energy is overvalued based on earnings compared to the US Electric Utilities industry average.

MGE Energy is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for MGE Energy, we can't assess if its growth is good value.


Price Based on Value of Assets

MGE Energy is overvalued based on assets compared to the US Electric Utilities industry average.


Next Steps

Future Growth

How is MGE Energy expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if MGE Energy is high growth as no revenue estimate data is available.

MGE Energy's earnings are expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Unable to compare MGE Energy's revenue growth to the United States of America market average as no estimate data is available.

MGE Energy's earnings growth is positive but not above the United States of America market average.

MGE Energy's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if MGE Energy will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has MGE Energy performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MGE Energy's year on year earnings growth rate has been positive over the past 5 years.

MGE Energy's 1-year earnings growth is negative, it can't be compared to the 5-year average.

MGE Energy's 1-year earnings growth is negative, it can't be compared to the US Electric Utilities industry average.


Return on Equity

MGE Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

MGE Energy used its assets more efficiently than the US Electric Utilities industry average last year based on Return on Assets.


Return on Capital Employed

MGE Energy's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is MGE Energy's financial position?


Financial Position Analysis

MGE Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

MGE Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

MGE Energy's level of debt (62.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (62.7% vs 62.4% today).

Debt is well covered by operating cash flow (28.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

What is MGE Energy's current dividend yield, its reliability and sustainability?

1.87%

Current Dividend Yield


Dividend Yield and Payments Analysis

MGE Energy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

MGE Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of MGE Energy's salary, the management and board of directors tenure and is there insider trading?

9.5yrs

Average board tenure


CEO

Jeff Keebler (47yo)

2.4yrs

Tenure

US$1,501,606

Compensation

Mr. Jeffrey M. Keebler, also known as Jeff, is President and Chief Executive Officer of Madison Gas and Electric Company (“MGE”) and also serves as its Chairman of the Board since October 1, 2018. He serve ...


CEO Compensation Analysis

Jeff's remuneration is lower than average for companies of similar size in United States of America.

Jeff's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

9.5yrs

Average Tenure

65.5yo

Average Age

The tenure for the MGE Energy board of directors is about average.


Insider Trading

More shares have been bought than sold by MGE Energy individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$50018 Jun 19
Cari Renlund
EntityIndividual
Shares7.2
Max PriceUS$69.40
BuyUS$4,49722 May 19
James Berbee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares63.34
Max PriceUS$70.99
BuyUS$34,97427 Mar 19
Jeffrey Keebler
EntityIndividual
Role
Chief Executive Officer
President
Shares524.95
Max PriceUS$66.62
BuyUS$28,47807 Mar 19
James Berbee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares435.77
Max PriceUS$65.35
BuyUS$3,00007 Mar 19
Regina Millner
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares45.91
Max PriceUS$65.35
BuyUS$9,99207 Mar 19
Marcia Anderson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares152.9
Max PriceUS$65.35
BuyUS$8,99315 Nov 18
James Berbee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares142.02
Max PriceUS$63.32
BuyUS$1,49930 Aug 18
James Berbee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares23.11
Max PriceUS$64.85

Ownership Breakdown


Management Team

  • Jeff Newman (56yo)

    Executive VP

    • Tenure: 10.6yrs
    • Compensation: US$896.12k
  • Jeff Keebler (47yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$1.50m
  • Ken Frassetto

    Director - Shareholder Services and Treasury Management

    • Tenure: 0.0yrs

Board Members

  • Gary Wolter (64yo)

    Director

    • Tenure: 19.6yrs
    • Compensation: US$227.79k
  • Curt Hastings (73yo)

    Director

    • Tenure: 20.6yrs
    • Compensation: US$120.04k
  • Regina Millner (74yo)

    Lead Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$127.79k
  • Jim Berbee (55yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$90.56k
  • Mark Bugher (70yo)

    Director

    • Tenure: 8.9yrs
    • Compensation: US$113.79k
  • Londa Dewey (58yo)

    Director

    • Tenure: 11.5yrs
    • Compensation: US$115.29k
  • Thomas Stolper (70yo)

    Director

    • Tenure: 10.7yrs
    • Compensation: US$110.79k
  • James Possin (67yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$123.29k
  • Jeff Keebler (47yo)

    President

    • Tenure: 2.4yrs
    • Compensation: US$1.50m
  • Marcia Anderson (61yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$90.56k

Company Information

MGE Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MGE Energy, Inc.
  • Ticker: MGEE
  • Exchange: NasdaqGS
  • Founded: 1855
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$2.620b
  • Shares outstanding: 34.67m
  • Website: https://www.mgeenergy.com

Location

  • MGE Energy, Inc.
  • 133 South Blair Street
  • Madison
  • Wisconsin
  • 53788
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGEENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1969

Biography

MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in Wisconsin. It operates through five segments: Regulated Electric Utility Operations; Regulated Gas Util ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:43
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.