MGE Energy, Inc.
MGE Energy, Inc. Fundamental Analysis
MGE Energy, Inc. (MGEE) shows moderate financial fundamentals with a PE ratio of 20.80, profit margin of 18.61%, and ROE of 11.16%. The company generates $0.8B in annual revenue with moderate year-over-year growth of 9.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MGEE's fundamental strength across five key dimensions:
Efficiency Score
WeakMGEE struggles to generate sufficient returns from assets.
Valuation Score
ModerateMGEE shows balanced valuation metrics.
Growth Score
ExcellentMGEE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMGEE maintains a strong and stable balance sheet.
Profitability Score
WeakMGEE struggles to sustain strong margins.
Key Financial Metrics
Is MGEE Expensive or Cheap?
P/E Ratio
MGEE trades at 20.80 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MGEE's PEG of 2.05 indicates potential overvaluation.
Price to Book
The market values MGE Energy, Inc. at 2.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.39 times EBITDA. This is generally considered low.
How Well Does MGEE Make Money?
Net Profit Margin
For every $100 in sales, MGE Energy, Inc. keeps $18.61 as profit after all expenses.
Operating Margin
Core operations generate 22.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.16 in profit for every $100 of shareholder equity.
ROA
MGE Energy, Inc. generates $4.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MGE Energy, Inc. generates strong operating cash flow of $267.25M, reflecting robust business health.
Free Cash Flow
MGE Energy, Inc. generates weak or negative free cash flow of $-131.22M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.57 in free cash annually.
FCF Yield
MGEE converts -4.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How MGEE Stacks Against Its Sector Peers
| Metric | MGEE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.80 | 20.39 | Neutral |
| ROE | 11.16% | 911.00% | Weak |
| Net Margin | 18.61% | 735.00% | Weak |
| Debt/Equity | 0.72 | 1.46 | Strong (Low Leverage) |
| Current Ratio | 1.14 | 1.30 | Neutral |
| ROA | 4.68% | 934.00% | Weak |
MGEE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MGE Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.58%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
43.33%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
48.80%
Industry Style: Defensive, Dividend, Income
High Growth