NasdaqGS:MGEE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


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

Stable Share Price: MGEE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MGEE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.07%

MGEE

-1.8%

US Electric Utilities

1.5%

US Market


1 Year Return

-8.3%

MGEE

-0.4%

US Electric Utilities

22.3%

US Market

Return vs Industry: MGEE underperformed the US Electric Utilities industry which returned -0% over the past year.

Return vs Market: MGEE underperformed the US Market which returned 22.1% over the past year.


Shareholder returns

MGEEIndustryMarket
7 Day-0.07%-1.8%1.5%
30 Day5.3%-0.8%8.8%
90 Day10.1%7.4%10.8%
1 Year-6.4%-8.3%3.0%-0.4%25.1%22.3%
3 Year18.8%11.7%10.4%1.2%49.5%39.6%
5 Year83.8%65.8%52.4%30.5%105.8%83.3%

Long-Term 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?

26.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGEE ($70.92) is trading above our estimate of fair value ($31.24)

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 (26.8x) compared to the US Electric Utilities industry average (20x).

PE vs Market: MGEE is poor value based on its PE Ratio (26.8x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: MGEE is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: MGEE is overvalued based on its PB Ratio (2.6x) compared to the US Electric Utilities industry average (1.9x).


Next Steps

Future Growth

How is MGE Energy forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGEE's forecast earnings growth (5.6% per year) is above the savings rate (2.2%).

Earnings vs Market: MGEE's earnings (5.6% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: MGEE's revenue (4.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: MGEE's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGEE's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has MGE Energy performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGEE has high quality earnings.

Growing Profit Margin: MGEE's current net profit margins (17.6%) are higher than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: MGEE's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: MGEE's earnings growth over the past year (7.7%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: MGEE earnings growth over the past year (7.7%) exceeded the Electric Utilities industry 6.1%.


Return on Equity

High ROE: MGEE's Return on Equity (9.6%) is considered low.


Next Steps

Financial Health

How is MGE Energy's financial position?


Financial Position Analysis

Short Term Liabilities: MGEE's short term assets ($199.9M) exceed its short term liabilities ($115.5M).

Long Term Liabilities: MGEE's short term assets ($199.9M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: MGEE's debt to equity ratio (55.4%) is considered high.

Reducing Debt: MGEE's debt to equity ratio has reduced from 57.5% to 55.4% over the past 5 years.

Debt Coverage: MGEE's debt is well covered by operating cash flow (28.7%).

Interest Coverage: MGEE's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MGEE's dividend (2.09%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: MGEE's dividend (2.09%) is low compared to the top 25% of dividend payers in the US market (4.1%).


Stability and Growth of Payments

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 (53.9%), MGEE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGEE's dividends in 3 years are forecast to be well covered by earnings (49.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.3yrs

Average management tenure


CEO

Jeff Keebler (48 yo)

3.75yrs

Tenure

US$2,381,012

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD2.38M) is below average for companies of similar size in the US market ($USD5.19M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Keebler
President3.75yrsUS$2.38m0.0064%
$ 161.3k
Cari Renlund
VP, General Counsel & Secretary0.25yrUS$575.33k0.00053%
$ 13.4k
Jeffrey Newman
Executive Vice President0.25yrUS$1.73m0.021%
$ 542.2k
Jared Bushek
VP of Finance0.25yrno data0.0011%
$ 27.6k
Tamara Johnson
VP of Accounting & Controller0.25yrno data0.0015%
$ 37.0k
Ken Frassetto
Director - Shareholder Services and Treasury Managementno datano datano data

0.3yrs

Average Tenure

48yo

Average Age

Experienced Management: MGEE's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Keebler
President3.75yrsUS$2.38m0.0064%
$ 161.3k
Gary Wolter
Director20.92yrsUS$109.34k0.055%
$ 1.4m
Frank Hastings
Lead Independent Directorno dataUS$129.34k0.018%
$ 463.0k
James Berbee
Independent Director2.75yrsUS$103.34k0.0086%
$ 217.7k
Mark Bugher
Independent Director10.25yrsUS$118.84k0.0038%
$ 96.7k
Londa Dewey
Independent Director12.83yrsUS$115.34k0.012%
$ 314.9k
Thomas Stolper
Independent Director12yrsUS$109.34k0.014%
$ 356.9k
James Possin
Independent Director11.08yrsUS$123.34k0.0084%
$ 211.6k
Marcia Anderson
Independent Director2.75yrsUS$113.84k0.0014%
$ 36.7k

10.7yrs

Average Tenure

65yo

Average Age

Experienced Board: MGEE's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

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$2.531b
  • Shares outstanding: 36.16m
  • 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 Analysis2020/12/04 23:03
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.