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MGE Energy

Nasdaq:MGEE
Snowflake Description

Adequate balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGEE
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Utilities
Company description

MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in Wisconsin. The last earnings update was 42 days ago. More info.


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MGEE Share Price and Events
7 Day Returns
1.7%
NasdaqGS:MGEE
1.4%
US Electric Utilities
1.2%
US Market
1 Year Returns
15.9%
NasdaqGS:MGEE
18.4%
US Electric Utilities
2.3%
US Market
MGEE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MGE Energy (MGEE) 1.7% 0.1% 6.8% 15.9% 30.2% 80.4%
US Electric Utilities 1.4% 2.8% 4.6% 18.4% 17.6% 37.9%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • MGEE underperformed the Electric Utilities industry which returned 18.4% over the past year.
  • MGEE outperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
MGEE
Industry
5yr Volatility vs Market

MGEE Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MGE Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MGE Energy.

NasdaqGS:MGEE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:MGEE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.28
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.279 (1 + (1- 21%) (21.35%))
0.549
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:MGEE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for MGE Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:MGEE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 24.31 Est @ 39.86% 22.62
2020 31.29 Est @ 28.72% 27.08
2021 37.84 Est @ 20.92% 30.46
2022 43.69 Est @ 15.46% 32.72
2023 48.78 Est @ 11.64% 33.98
2024 53.15 Est @ 8.97% 34.45
2025 56.93 Est @ 7.1% 34.32
2026 60.22 Est @ 5.79% 33.77
2027 63.16 Est @ 4.87% 32.95
2028 65.83 Est @ 4.23% 31.94
Present value of next 10 years cash flows $314.28
NasdaqGS:MGEE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $65.83 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$1,418.26
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,418.26 ÷ (1 + 7.5%)10
$688.26
NasdaqGS:MGEE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $314.28 + $688.26
$1,002.54
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,002.54 / 34.67
$28.92
NasdaqGS:MGEE Discount to Share Price
Calculation Result
Value per share (USD) From above. $28.92
Current discount Discount to share price of $70.50
= -1 x ($70.50 - $28.92) / $28.92
-143.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of MGE Energy is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MGE Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MGE Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:MGEE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.54
NasdaqGS:MGEE Share Price ** NasdaqGS (2019-06-19) in USD $70.5
United States of America Electric Utilities Industry PE Ratio Median Figure of 26 Publicly-Listed Electric Utilities Companies 22.39x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MGE Energy.

NasdaqGS:MGEE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MGEE Share Price ÷ EPS (both in USD)

= 70.5 ÷ 2.54

27.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does MGE Energy's expected growth come at a high price?
Raw Data
NasdaqGS:MGEE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
3.3%per year
United States of America Electric Utilities Industry PEG Ratio Median Figure of 22 Publicly-Listed Electric Utilities Companies 3.2x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for MGE Energy, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on MGE Energy's assets?
Raw Data
NasdaqGS:MGEE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $23.91
NasdaqGS:MGEE Share Price * NasdaqGS (2019-06-19) in USD $70.5
United States of America Electric Utilities Industry PB Ratio Median Figure of 29 Publicly-Listed Electric Utilities Companies 2.17x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NasdaqGS:MGEE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MGEE Share Price ÷ Book Value per Share (both in USD)

= 70.5 ÷ 23.91

2.95x

* Primary Listing of MGE Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MGE Energy is overvalued based on assets compared to the US Electric Utilities industry average.
X
Value checks
We assess MGE Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. MGE Energy has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MGEE Future Performance

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

  • No analysts cover MGE Energy, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MGE Energy expected to grow at an attractive rate?
  • MGE Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • MGE Energy's earnings growth is positive but not above the United States of America market average.
  • Unable to compare MGE Energy's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:MGEE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:MGEE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 3.3%
United States of America Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 8%
United States of America Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:MGEE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:MGEE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
NasdaqGS:MGEE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 570 159 88
2018-12-31 560 153 84
2018-09-30 560 174 104
2018-06-30 562 156 101
2018-03-31 564 137 98
2017-12-31 563 131 98
2017-09-30 562 114 76
2017-06-30 559 121 77
2017-03-31 554 145 78
2016-12-31 545 148 76
2016-09-30 537 148 72
2016-06-30 541 162 73

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MGE Energy's earnings are expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if MGE Energy is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:MGEE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from MGE Energy Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MGEE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
NasdaqGS:MGEE Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.54
2018-12-31 2.43
2018-09-30 3.00
2018-06-30 2.92
2018-03-31 2.84
2017-12-31 2.82
2017-09-30 2.19
2017-06-30 2.23
2017-03-31 2.25
2016-12-31 2.18
2016-09-30 2.09
2016-06-30 2.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if MGE Energy will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess MGE Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MGE Energy has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MGEE Past Performance

  How has MGE Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MGE Energy's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
MGE Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MGE Energy Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:MGEE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 569.71 88.23 -9.22
2018-12-31 559.77 84.22 -10.95
2018-09-30 559.96 103.99 -7.16
2018-06-30 561.71 101.12 -8.99
2018-03-31 563.91 98.31 -8.99
2017-12-31 563.10 97.61 -6.23
2017-09-30 561.75 75.97 -4.57
2017-06-30 558.93 77.23
2017-03-31 554.04 77.83
2016-12-31 544.75 75.56 -6.59
2016-09-30 536.79 72.29
2016-06-30 540.87 72.76
2016-03-31 541.42 70.09
2015-12-31 564.03 71.34
2015-09-30 578.76 75.30
2015-06-30 573.10 70.27
2015-03-31 579.74 70.88
2014-12-31 619.85 80.32
2014-09-30 629.41 79.21
2014-06-30 634.37 80.23
2014-03-31 633.90 80.04
2013-12-31 590.89 74.91
2013-09-30 572.63 71.31
2013-06-30 570.37 70.60
2013-03-31 559.30 70.98
2012-12-31 541.32 64.45
2012-09-30 535.26 63.34
2012-06-30 531.00 60.74

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MGE Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MGE Energy used its assets more efficiently than the US Electric Utilities industry average last year based on Return on Assets.
  • MGE Energy's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess MGE Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MGE Energy has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MGEE Health

 How is MGE Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MGE Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of MGE Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MGE Energy Company Filings, last reported 2 months ago.

NasdaqGS:MGEE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 828.95 521.73 82.40
2018-12-31 816.64 510.90 83.10
2018-09-30 811.98 498.93 133.86
2018-06-30 794.18 448.80 95.58
2018-03-31 787.01 424.61 101.16
2017-12-31 778.19 426.61 107.95
2017-09-30 753.25 400.83 104.73
2017-06-30 737.74 394.84 102.92
2017-03-31 732.83 395.85 117.70
2016-12-31 724.09 387.12 95.96
2016-09-30 720.26 388.13 111.59
2016-06-30 703.03 389.09 110.31
2016-03-31 697.10 390.06 97.33
2015-12-31 690.46 391.01 81.38
2015-09-30 689.37 396.33 94.27
2015-06-30 671.33 397.37 75.79
2015-03-31 667.66 398.41 70.70
2014-12-31 659.40 406.44 65.76
2014-09-30 653.99 400.47 88.72
2014-06-30 640.36 401.49 87.91
2014-03-31 635.73 402.50 93.49
2013-12-31 617.51 403.52 68.81
2013-09-30 612.75 404.52 75.33
2013-06-30 597.78 374.18 42.33
2013-03-31 592.95 371.34 45.89
2012-12-31 579.43 361.50 46.36
2012-09-30 578.13 362.17 59.20
2012-06-30 563.63 362.83 41.29
  • MGE Energy's level of debt (62.9%) 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 (63.3% vs 62.9% today).
  • Debt is well covered by operating cash flow (30.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).
X
Financial health checks
We assess MGE Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MGE Energy has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MGEE Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.91%
Current annual income from MGE Energy dividends.
If you bought $2,000 of MGE Energy shares you are expected to receive $38 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MGE Energy's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • MGE Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:MGEE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 3.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:MGEE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
NasdaqGS:MGEE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-14 1.350 1.947
2019-01-18 1.350 2.053
2018-10-19 1.350 2.152
2018-08-17 1.350 2.085
2018-05-15 1.290 2.097
2018-01-19 1.290 2.279
2017-10-20 1.290 2.026
2017-08-18 1.290 1.977
2017-05-16 1.230 1.887
2017-01-20 1.230 1.930
2016-11-18 1.230 1.951
2016-08-19 1.230 2.169
2016-05-17 1.180 2.158
2016-01-15 1.180 2.360
2015-11-20 1.180 2.642
2015-08-24 1.180 2.897
2015-05-19 1.130 2.884
2015-01-16 1.130 2.612
2014-11-19 1.130 2.510
2014-08-15 1.130 2.777
2014-05-20 1.087 2.831
2014-01-17 1.087 2.839
2013-11-15 1.087 2.909
2013-08-16 1.087 2.996
2013-05-21 1.054 2.802
2013-01-31 1.054 2.892
2012-08-17 1.054 3.069
2012-08-07 1.020 3.078
2012-04-20 1.020 3.284
2012-01-20 1.020 3.413
2011-11-18 1.020 3.426
2011-08-19 1.020 3.644
2011-08-05 1.000 3.757
2011-05-17 1.000 3.671
2011-05-06 1.000 3.583
2011-01-21 1.000 3.666
2010-11-19 1.000 3.532
2010-08-20 1.000 3.791
2010-08-05 0.981 3.989
2010-05-06 0.981 4.036
2010-02-25 0.981 4.142
2009-08-21 0.982 4.165
2009-08-06 0.965 4.014

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of MGE Energy's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x 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.
X
Income/ dividend checks
We assess MGE Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MGE Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MGE Energy has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MGEE Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Keebler
COMPENSATION $1,501,606
AGE 46
TENURE AS CEO 2.3 years
CEO Bio

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 serves as President, CEO & Chairman of the Board at MGE Energy, Inc. since October 1, 2018. He serves as Director of American Transmission Company LLC since June 27, 2018. He has served as President and Chief Executive Officer, Director at MGE Energy, Inc. since March 1, 2017 until October 1, 2018. Mr. Keebler has 22 years of experience. He was Assistant Vice President - Energy Supply and Customer Service of MGE since January 2012. He served as Senior Vice President - Energy Supply and Planning of Madison Gas and Electric Company since July 2015. Mr. Keebler has been employed at Madison Gas and Electric Company since 1995. Mr. Keebler is a director of the University of Wisconsin Research Park and United Way of Dane County. He was Senior Director - Energy Supply Procurement of MGE since May 2007. He started with MGE in 1995. He has a Bachelor of Science Degree in Finance and Economics from the University of Wisconsin-La Crosse and a Master of Business Administration from the University of Wisconsin-Whitewater. He has held various leadership positions at MGE in Energy Supply, Rates, Generation Planning, Information Technology, Customer Service and Human Resources.

CEO Compensation
  • Jeff's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jeff's remuneration is lower than average for companies of similar size in United States of America.
Management Team

Jeff Keebler

TITLE
President
COMPENSATION
$2M
AGE
46
TENURE
2.3 yrs

Jeff Newman

TITLE
Executive VP
COMPENSATION
$896K
AGE
55
TENURE
10.4 yrs

Ken Frassetto

TITLE
Director - Shareholder Services and Treasury Management
Board of Directors Tenure

Average tenure and age of the MGE Energy board of directors in years:

9.3
Average Tenure
64.5
Average Age
  • The tenure for the MGE Energy board of directors is about average.
Board of Directors

Jeff Keebler

TITLE
President
COMPENSATION
$2M
AGE
46
TENURE
0.7 yrs

Curt Hastings

TITLE
Director
COMPENSATION
$120K
AGE
72
TENURE
20.4 yrs

Regina Millner

TITLE
Lead Independent Director
COMPENSATION
$128K
AGE
73
TENURE
9.1 yrs

James Possin

TITLE
Director
COMPENSATION
$123K
AGE
66
TENURE
9.6 yrs

Gary Wolter

TITLE
Director
COMPENSATION
$228K
AGE
63
TENURE
19.4 yrs

Londa Dewey

TITLE
Director
COMPENSATION
$115K
AGE
57
TENURE
11.3 yrs

Thomas Stolper

TITLE
Director
COMPENSATION
$111K
AGE
69
TENURE
10.5 yrs

Mark Bugher

TITLE
Director
COMPENSATION
$114K
AGE
69
TENURE
8.8 yrs

Marcia Anderson

TITLE
Director
COMPENSATION
$91K
AGE
60
TENURE
1.3 yrs

Jim Berbee

TITLE
Director
COMPENSATION
$91K
AGE
54
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by MGE Energy insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. May 19 Buy James Berbee Individual 21. May 19 21. May 19 63 $70.99 $4,497
27. Mar 19 Buy Jeffrey Keebler Individual 25. Mar 19 25. Mar 19 525 $66.62 $34,974
07. Mar 19 Buy James Berbee Individual 05. Mar 19 05. Mar 19 436 $65.35 $28,478
07. Mar 19 Buy Marcia Anderson Individual 05. Mar 19 05. Mar 19 153 $65.35 $9,992
07. Mar 19 Buy Regina Millner Individual 05. Mar 19 05. Mar 19 46 $65.35 $3,000
15. Nov 18 Buy James Berbee Individual 13. Nov 18 13. Nov 18 142 $63.32 $8,993
30. Aug 18 Buy James Berbee Individual 28. Aug 18 28. Aug 18 23 $64.85 $1,499
15. Aug 18 Buy James Berbee Individual 14. Aug 18 14. Aug 18 239 $65.80 $15,738
X
Management checks
We assess MGE Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MGE Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MGEE News

Simply Wall St News

What does MGE Energy, Inc.'s (NASDAQ:MGEE) Balance Sheet Tell Us About Its Future?

See our latest analysis for MGE Energy MGEE’s Debt (And Cash Flows) MGEE has built up its total debt levels in the last twelve months, from US$425m to US$522m – this includes long-term debt. … Additionally, MGEE has produced cash from operations of US$159m in the last twelve months, resulting in an operating cash to total debt ratio of 31%, meaning that MGEE’s debt is appropriately covered by operating cash. … In MGEE's case, the ratio of 6.23x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving MGEE ample headroom to grow its debt facilities.

Simply Wall St -

Should You Buy MGE Energy, Inc. (NASDAQ:MGEE) For Its Dividend?

NasdaqGS:MGEE Historical Dividend Yield, May 29th 2019 Payout ratios Dividends are usually paid out of company earnings. … Conclusion To summarise, shareholders should always check that MGE Energy's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Earnings per share growth has been slow, but we respect a company that maintains a relatively stable dividend.

Simply Wall St -

You Might Like MGE Energy, Inc. (NASDAQ:MGEE) But Do You Like Its Debt?

Moreover, MGEE has produced cash from operations of US$159m during the same period of time, leading to an operating cash to total debt ratio of 31%, meaning that MGEE’s operating cash is sufficient to cover its debt. … Looking at MGEE’s US$112m in current liabilities, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.97x. … Next Steps: Although MGEE’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

Don't Sell MGE Energy, Inc. (NASDAQ:MGEE) Before You Read This

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll apply a basic P/E ratio analysis to MGE Energy, Inc.'s (NASDAQ:MGEE), to help you decide if the stock is worth further research. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

With A -14% Earnings Drop, Is MGE Energy, Inc.'s (NASDAQ:MGEE) A Concern?

(NASDAQ:MGEE) released its most recent earnings update (31 December 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … MGEE's trailing twelve-month earnings (from 31 December 2018) of US$84m has? … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 5.1%, indicating the rate at which MGEE is growing has slowed down

Simply Wall St -

Taking A Look At MGE Energy, Inc.'s (NASDAQ:MGEE) ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every $1 worth of shareholders' equity, it generated $0.10 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

MGE Energy (NASDAQ:MGEE) Shareholders Booked A 69% Gain In The Last Five Years

To wit, the MGE Energy share price has climbed 69% in five years, easily topping the market return of 44% (ignoring dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, MGE Energy achieved compound earnings per share (EPS) growth of 2.4% per year.

Simply Wall St -

Is MGE Energy, Inc.'s (NASDAQ:MGEE) Balance Sheet A Threat To Its Future?

Mid-caps stocks, like MGE Energy, Inc. … MGEE’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Does MGE Energy, Inc. (NASDAQ:MGEE) Have A Place In Your Portfolio?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … (NASDAQ:MGEE) has paid a dividend to shareholders. … View our latest analysis for MGE Energy

Simply Wall St -

Should You Be Tempted To Sell MGE Energy, Inc. (NASDAQ:MGEE) Because Of Its P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … That corresponds to an earnings yield of approximately 4.8%. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

MGEE Company Info

Description

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 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, natural gas, and renewable energy sources, as well as purchases power under short and long-term commitments. As of February 22, 2019, the company distributed electricity to 153,000 customers in Dane County, Wisconsin, including the City of Madison; and purchased and distributed natural gas to 161,000 customers in seven south-central and western Wisconsin counties. MGE Energy, Inc. was founded in 1855 and is based in Madison, Wisconsin.

Details
Name: MGE Energy, Inc.
MGEE
Exchange: NasdaqGS
Founded: 1855
$2,444,120,085
34,668,370
Website: http://www.mgeenergy.com
Address: MGE Energy, Inc.
133 South Blair Street,
Madison,
Wisconsin, 53788,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MGEE Common Stock Nasdaq Global Select US USD 02. Jan 1969
Number of employees
Current staff
Staff numbers
0
MGE Energy employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 23:45
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2017/11/13
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.