NasdaqGS:MGEE

Stock Analysis Report

Executive Summary

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

Rewards

Pays a reliable dividend of 1.82%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Average dividend payer with mediocre 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

Stable Share Price: MGEE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.3%

MGEE

2.7%

US Electric Utilities

-2.7%

US Market


1 Year Return

26.1%

MGEE

30.6%

US Electric Utilities

21.2%

US Market

Return vs Industry: MGEE underperformed the US Electric Utilities industry which returned 27.2% over the past year.

Return vs Market: MGEE exceeded the US Market which returned 23.9% over the past year.


Shareholder returns

MGEEIndustryMarket
7 Day-0.3%2.7%-2.7%
30 Day-0.1%7.2%0.09%
90 Day3.7%10.0%6.9%
1 Year28.6%26.1%35.0%30.6%23.8%21.2%
3 Year34.1%26.2%57.1%41.7%48.1%38.6%
5 Year90.5%70.5%69.1%40.7%72.5%53.4%

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?

31.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGEE ($77.35) is trading above our estimate of fair value ($32.4)

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 (31x) compared to the Electric Utilities industry average (25x).

PE vs Market: MGEE is poor value based on its PE Ratio (31x) compared to the US market (18.9x).


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 (3.2x) 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?

7.0%

Forecasted Utilities industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as MGE Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has MGE Energy performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGEE has high quality earnings.

Growing Profit Margin: MGEE's current net profit margins (15.6%) are lower than last year (19.1%).


Past Earnings Growth Analysis

Earnings Trend: MGEE's earnings have grown by 5.6% 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 (-16.8%) over the past year, making it difficult to compare to the Electric Utilities industry average (2%).


Return on Equity

High ROE: MGEE's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MGE Energy's financial position?


Financial Position Analysis

Short Term Liabilities: MGEE's short term assets ($204.4M) exceed its short term liabilities ($152.1M).

Long Term Liabilities: MGEE's short term assets ($204.4M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: MGEE's debt to equity ratio (64.5%) is considered high.

Reducing Debt: MGEE's debt to equity ratio has increased from 61.2% to 64.5% over the past 5 years.

Debt Coverage: MGEE's debt is well covered by operating cash flow (23%).

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

1.78%

Current Dividend Yield


Upcoming Dividend Payment

Purchase MGE Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: MGEE's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: MGEE's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (54.6%), 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?

9.9yrs

Average board tenure


CEO

Jeff Keebler (47yo)

2.8yrs

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 ($USD1.50M) is below average for companies of similar size in the US market ($USD4.99M).

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


Board Age and Tenure

9.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: MGEE's board of directors are considered experienced (9.9 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$4,49715 Nov 19
James Berbee
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares59.66
Max PriceUS$75.38
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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jeff Newman (56yo)

    Executive VP

    • Tenure: 11yrs
    • Compensation: US$896.12k
  • Jeff Keebler (47yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$1.50m
  • Ken Frassetto

    Director - Shareholder Services and Treasury Management


    Board Members

    • Gary Wolter (64yo)

      Director

      • Tenure: 20yrs
      • Compensation: US$227.79k
    • Curt Hastings (73yo)

      Independent Director

      • Tenure: 21yrs
      • Compensation: US$120.04k
    • Regina Millner (74yo)

      Lead Independent Director

      • Tenure: 9.7yrs
      • Compensation: US$127.79k
    • Jim Berbee (55yo)

      Independent Director

      • Tenure: 1.8yrs
      • Compensation: US$90.56k
    • Mark Bugher (70yo)

      Independent Director

      • Tenure: 9.3yrs
      • Compensation: US$113.79k
    • Londa Dewey (58yo)

      Independent Director

      • Tenure: 11.9yrs
      • Compensation: US$115.29k
    • Thomas Stolper (70yo)

      Director

      • Tenure: 11.1yrs
      • Compensation: US$110.79k
    • James Possin (67yo)

      Independent Director

      • Tenure: 10.2yrs
      • Compensation: US$123.29k
    • Jeff Keebler (47yo)

      President

      • Tenure: 2.8yrs
      • Compensation: US$1.50m
    • Marcia Anderson (61yo)

      Independent Director

      • Tenure: 1.8yrs
      • 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$2.742b
    • 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 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. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/27 23:39
    End of Day Share Price2020/01/27 00:00
    Earnings2019/09/30
    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.