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MGE Energy
(NASDAQ:MGEE)
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Rating:68Neutral
Price Target:
$87.00
â–²(5.56% Upside)
Action:Reiterated
Date:08/06/26
MGEE’s score is driven primarily by steady financial performance (strong profitability and recent revenue growth, plus a stable balance sheet), partially offset by negative free cash flow in TTM. Technicals are neutral-to-soft near term despite longer-term support, while valuation is reasonable with a moderate dividend yield. Corporate events add a small positive tilt due to improved reported earnings and operational continuity.
Positive Factors
Regulated utility model and steady ROE
MGE operates as a regulated electric and gas utility where allowed returns on invested capital produce predictable earnings and cash flows. Steady ROE around 10–11% and growing equity support long-term financial stability, enabling planned infrastructure investment and consistent regulatory recovery mechanisms.
Negative Factors
Negative free cash flow
Persistent negative free cash flow (TTM ~- $164M) reflects elevated capital spending and working-capital absorption. Over several months this increases reliance on external financing to fund growth and dividends, constraining flexibility and raising execution risk if capital markets tighten or costs of financing rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility model and steady ROE
MGE operates as a regulated electric and gas utility where allowed returns on invested capital produce predictable earnings and cash flows. Steady ROE around 10–11% and growing equity support long-term financial stability, enabling planned infrastructure investment and consistent regulatory recovery mechanisms.
Read all positive factors
MGE Energy (MGEE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.00B
Dividend Yield2.39%
Average Volume (3M)135.28K
Price to Earnings (P/E)20.4
Beta (1Y)0.29
Revenue Growth8.91%
EPS Growth10.48%
CountryUS
Employees726
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)4.06
Shares Outstanding37,746,520
10 Day Avg. Volume172,661
30 Day Avg. Volume135,282
Financial Highlights & Ratios
PEG Ratio1.80
Price to Book (P/B)2.20
Price to Sales (P/S)3.85
P/FCF Ratio-35.82
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$78.00Price Target Upside-5.36% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)3.93
Revenue Forecast (FY)$773.21M
MGE Energy Business Overview & Revenue Model
Company Description
MGE Energy, Inc. operates as a public utility holding company, primarily conducting its business in Wisconsin through various subsidiary entities. The company's operations are divided into several key segments: Regulated Electric Utility, Regulate...
How the Company Makes Money
MGE Energy makes money primarily through regulated utility operations at Madison Gas and Electric (MGE). The company earns revenue by selling electricity and natural gas to residential, commercial, industrial, and other customers within its author...
MGE Energy Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 769.13M | 743.65M | 676.94M | 690.43M | 714.52M | 606.58M |
| Gross Profit | 679.09M | 723.65M | 278.83M | 269.04M | 243.92M | 213.55M |
| EBITDA | 296.30M | 304.78M | 272.68M | 276.28M | 249.37M | 210.97M |
| Net Income | 149.63M | 135.89M | 120.57M | 117.70M | 110.95M | 105.76M |
Balance Sheet | ||||||
| Total Assets | 3.16B | 3.16B | 2.83B | 2.68B | 2.52B | 2.37B |
| Cash, Cash Equivalents and Short-Term Investments | 10.74M | 6.62M | 21.30M | 11.14M | 11.60M | 17.44M |
| Total Debt | 899.61M | 935.73M | 787.45M | 780.01M | 727.17M | 641.92M |
| Total Liabilities | 1.83B | 1.85B | 1.60B | 1.54B | 1.44B | 1.34B |
| Stockholders Equity | 1.33B | 1.30B | 1.23B | 1.14B | 1.08B | 1.03B |
Cash Flow | ||||||
| Free Cash Flow | -184.71M | -79.99M | 40.86M | 15.49M | -21.30M | -15.64M |
| Operating Cash Flow | 358.80M | 263.23M | 277.78M | 237.56M | 153.74M | 137.53M |
| Investing Cash Flow | -554.10M | -350.56M | -241.49M | -230.02M | -180.15M | -156.97M |
| Financing Cash Flow | 205.59M | 71.57M | -26.83M | -10.48M | 25.54M | -8.76M |
MGE Energy Technical Analysis
Positive
82.42
Price Trends
79.02
Positive
77.97
Positive
78.84
Positive
Market Momentum
0.09
Positive
48.51
Neutral
35.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGEE, the sentiment is Positive. The current price of 82.42 is above the 20-day moving average (MA) of 81.17, above the 50-day MA of 79.02, and above the 200-day MA of 78.84, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 35.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MGEE.
MGE Energy Risk Analysis
MGE Energy disclosed 26 risk factors in its most recent earnings report. MGE Energy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MGE Energy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.00B | 20.39 | 10.94% | 2.31% | 8.91% | 10.48% | |
66 Neutral | $3.71B | 13.20 | 15.21% | 2.39% | -0.54% | -5.27% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
60 Neutral | $5.42B | 18.45 | 7.60% | 3.66% | 3.58% | -1.83% | |
60 Neutral | $4.23B | 24.64 | 5.92% | 3.65% | 10.69% | -24.15% | |
56 Neutral | $3.34B | 16.05 | 8.29% | 4.67% | -1.47% | 7.23% |
* Utilities Sector Average
MGEE
MGE Energy
80.85
-1.35
-1.65%
AVA
Avista
38.42
2.35
6.51%
BKH
Black Hills
72.75
14.75
25.44%
NWE
Northwestern
70.27
17.12
32.21%
OTTR
Otter Tail
93.05
15.42
19.86%
MGE Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
MGE Energy boosts earnings on renewable investment gains
Positive
Aug 5, 2026
On August 5, 2026, MGE Energy, Inc. reported second-quarter 2026 GAAP earnings of $33.4 million, or $0.89 per share, up from $26.5 million, or $0.72 per share, a year earlier. Operating revenues for the quarter rose modestly to $161.2 million from...
Business Operations and StrategyExecutive/Board Changes
MGE Energy Announces Vice President of Operations Succession
Positive
Jun 23, 2026
On June 19, 2026, Madison Gas and Electric Company announced that Vice President of Energy Operations James J. Lorenz plans to retire effective December 31, 2026, and will remain in his current role until that date. Effective January 1, 2027, Assi...
Executive/Board ChangesShareholder Meetings
MGE Energy Shareholders Reaffirm Board, Auditor and Pay
Positive
May 22, 2026
At its May 19, 2026 annual meeting of shareholders, MGE Energy, Inc. elected three Class I directors—James G. Berbee, Londa J. Dewey and Angela S. Rieger—to terms expiring at the 2029 annual meeting, reaffirming the company’s exi...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
MGE Energy Highlights Financial Strategy at AGA Forum
Positive
May 8, 2026
On May 8, 2026, MGE Energy, Inc. posted a financial presentation on its Investor Relations website and furnished it to the Securities and Exchange Commission. The materials are intended to support the company’s communication with the investm...
Private Placements and FinancingRegulatory Filings and Compliance
MGE Energy Initiates Shelf Offering to Raise Capital
Neutral
May 8, 2026
MGE Energy disclosed that it is offering and selling shares under an existing shelf registration statement on Form S-3, with the transactions supported by underwriting and forward sale agreements involving forward purchasers and sellers. These fin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.