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.


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

-2.9%

MGEE

1.7%

US Electric Utilities

0.07%

US Market


1 Year Return

19.7%

MGEE

18.3%

US Electric Utilities

8.9%

US Market

Return vs Industry: MGEE exceeded the US Electric Utilities industry which returned 18.3% over the past year.

Return vs Market: MGEE exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

MGEEIndustryMarket
7 Day-2.9%1.7%0.07%
30 Day-1.3%0.3%-0.3%
90 Day1.6%6.6%-1.6%
1 Year22.2%19.7%22.2%18.3%11.3%8.9%
3 Year39.7%31.4%44.8%30.3%46.3%36.8%
5 Year94.3%73.6%71.4%42.1%62.1%44.3%

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 compared to its fair value and its price relative to the market?

30.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGEE ($74.5) is trading above our estimate of fair value ($29.57)

Significantly Below Fair Value: MGEE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MGEE is poor value based on its PE Ratio (30.2x) compared to the Electric Utilities industry average (23.9x).

PE vs Market: MGEE is poor value based on its PE Ratio (30.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MGEE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MGEE is overvalued based on its PB Ratio (3.1x) compared to the US Electric Utilities industry average (2.3x).


Next Steps

Future Growth

How is MGE Energy forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGEE's forecast earnings growth (2.7% per year) is below the savings rate (2.7%).

Earnings vs Market: MGEE's earnings (2.7% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: MGEE's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if MGEE's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if MGEE's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MGEE's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: MGEE's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: MGEE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MGEE had negative earnings growth (-15.5%) over the past year, making it difficult to compare to the Electric Utilities industry average (4.2%).


Return on Equity

High ROE: MGEE's Return on Equity (10.3%) is considered low.


Return on Assets

ROA vs Industry: MGEE has a higher Return on Assets than the Electric Utilities industry average last year.


Return on Capital Employed

ROCE Improving: MGEE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is MGE Energy's financial position?


Financial Position Analysis

Short Term Liabilities: MGEE's short term assets ($211.6M) exceeds its short term liabilities ($128.2M)

Long Term Liabilities: MGEE's short term assets (211.6M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: MGEE's debt to equity ratio (62.4%) is considered high

Reducing Debt: MGEE's debt to equity ratio has reduced from 62.7% to 62.4% over the past 5 years.

Debt Coverage: MGEE's debt is well covered by operating cash flow (28.4%).

Interest Coverage: MGEE's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet

Inventory Level: MGEE has a high level of physical assets or inventory.

Debt Coverage by Assets: MGEE's 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?

1.89%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MGEE's dividend (1.89%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MGEE's dividend (1.89%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: MGEE's dividends per share have been stable in the past 10 years.

Growing Dividend: MGEE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.8%), MGEE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

9.7yrs

Average board tenure


CEO

Jeff Keebler (47yo)

2.6yrs

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

Compensation vs. Market: Jeff's total compensation ($USD1.50M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Board Age and Tenure

9.7yrs

Average Tenure

65.5yo

Average Age

Experienced Board: MGEE's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

Insider Buying: MGEE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$28,48123 Aug 19
James Berbee
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares375.25
Max PriceUS$75.90
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
Independent 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
Independent 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
Independent Director
Shares152.9
Max PriceUS$65.35
BuyUS$8,99315 Nov 18
James Berbee
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares142.02
Max PriceUS$63.32

Ownership Breakdown


Management Team

  • Jeff Newman (56yo)

    Executive VP

    • Tenure: 10.8yrs
    • Compensation: US$896.12k
  • Jeff Keebler (47yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$1.50m
  • Ken Frassetto

    Director - Shareholder Services and Treasury Management

    • Tenure: 0yrs

Board Members

  • Gary Wolter (64yo)

    Director

    • Tenure: 19.8yrs
    • Compensation: US$227.79k
  • Curt Hastings (73yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$120.04k
  • Regina Millner (74yo)

    Lead Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$127.79k
  • Jim Berbee (55yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$90.56k
  • Mark Bugher (70yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$113.79k
  • Londa Dewey (58yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$115.29k
  • Thomas Stolper (70yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: US$110.79k
  • James Possin (67yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$123.29k
  • Jeff Keebler (47yo)

    President

    • Tenure: 2.6yrs
    • Compensation: US$1.50m
  • Marcia Anderson (61yo)

    Independent Director

    • Tenure: 1.6yrs
    • 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$2.583b
  • 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 Analysis2019/10/22 23:38
End of Day Share Price2019/10/22 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.