MGE ENERGY INC (MGEE) Stock Fundamental Analysis
NASDAQ:MGEE - US55277P1049 - Common Stock
86.01 USD
-1.48 (-1.69%)
86.01 USD
0 (0%)
Overall MGEE gets a fundamental rating of 5 out of 10. We evaluated MGEE against 47 industry peers in the Electric Utilities industry. MGEE scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, MGEE is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MGEE had positive earnings in the past year.
In the past year MGEE had a positive cash flow from operations.
In the past 5 years MGEE has always been profitable.
Each year in the past 5 years MGEE had a positive operating cash flow.
1.2 Ratios
MGEE's Return On Assets of 4.58% is amongst the best of the industry. MGEE outperforms 80.85% of its industry peers.
The Return On Equity of MGEE (10.32%) is comparable to the rest of the industry.
MGEE has a Return On Invested Capital of 5.11%. This is in the better half of the industry: MGEE outperforms 72.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MGEE is in line with the industry average of 5.03%.
The last Return On Invested Capital (5.11%) for MGEE is above the 3 year average (4.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 10.32% | ||
| ROIC | 5.11% |
ROA(3y)4.36%
ROA(5y)4.33%
ROE(3y)10.13%
ROE(5y)10.03%
ROIC(3y)4.89%
ROIC(5y)4.73%
1.3 Margins
Looking at the Profit Margin, with a value of 18.24%, MGEE belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
In the last couple of years the Profit Margin of MGEE has grown nicely.
MGEE has a Operating Margin (22.67%) which is in line with its industry peers.
MGEE's Operating Margin has improved in the last couple of years.
The Gross Margin of MGEE (82.70%) is better than 78.72% of its industry peers.
In the last couple of years the Gross Margin of MGEE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.67% | ||
| PM (TTM) | 18.24% | ||
| GM | 82.7% |
OM growth 3Y3.77%
OM growth 5Y2.08%
PM growth 3Y0.7%
PM growth 5Y3.12%
GM growth 3Y2.47%
GM growth 5Y1.05%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGEE is destroying value.
Compared to 1 year ago, MGEE has more shares outstanding
Compared to 5 years ago, MGEE has more shares outstanding
The debt/assets ratio for MGEE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.05 indicates that MGEE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.05, MGEE belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
The Debt to FCF ratio of MGEE is 17.45, which is on the high side as it means it would take MGEE, 17.45 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.45, MGEE is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
MGEE has a Debt/Equity ratio of 0.60. This is a neutral value indicating MGEE is somewhat dependend on debt financing.
The Debt to Equity ratio of MGEE (0.60) is better than 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 17.45 | ||
| Altman-Z | 2.05 |
ROIC/WACC0.64
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.80 indicates that MGEE should not have too much problems paying its short term obligations.
MGEE's Current ratio of 1.80 is amongst the best of the industry. MGEE outperforms 85.11% of its industry peers.
A Quick Ratio of 1.20 indicates that MGEE should not have too much problems paying its short term obligations.
MGEE's Quick ratio of 1.20 is fine compared to the rest of the industry. MGEE outperforms 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.85% over the past year.
The Earnings Per Share has been growing slightly by 5.80% on average over the past years.
Looking at the last year, MGEE shows a quite strong growth in Revenue. The Revenue has grown by 8.47% in the last year.
Measured over the past years, MGEE shows a small growth in Revenue. The Revenue has been growing by 3.54% on average per year.
EPS 1Y (TTM)12.85%
EPS 3Y4.36%
EPS 5Y5.8%
EPS Q2Q%9.09%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y3.73%
Revenue growth 5Y3.54%
Sales Q2Q%9.43%
3.2 Future
Based on estimates for the next years, MGEE will show a small growth in Earnings Per Share. The EPS will grow by 7.38% on average per year.
Based on estimates for the next years, MGEE will show a small growth in Revenue. The Revenue will grow by 4.49% on average per year.
EPS Next Y12.72%
EPS Next 2Y9.72%
EPS Next 3Y8.87%
EPS Next 5Y7.38%
Revenue Next Year6.19%
Revenue Next 2Y4.83%
Revenue Next 3Y4.25%
Revenue Next 5Y4.49%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MGEE is valuated rather expensively with a Price/Earnings ratio of 23.89.
Compared to the rest of the industry, the Price/Earnings ratio of MGEE indicates a rather expensive valuation: MGEE more expensive than 80.85% of the companies listed in the same industry.
MGEE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.17.
With a Price/Forward Earnings ratio of 21.46, MGEE is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MGEE is valued more expensive than 80.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MGEE to the average of the S&P500 Index (22.78), we can say MGEE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 21.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGEE is valued a bit more expensive than 74.47% of the companies in the same industry.
74.47% of the companies in the same industry are more expensive than MGEE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.03 | ||
| EV/EBITDA | 14.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MGEE does not grow enough to justify the current Price/Earnings ratio.
MGEE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.88
PEG (5Y)4.12
EPS Next 2Y9.72%
EPS Next 3Y8.87%
5. Dividend
5.1 Amount
MGEE has a Yearly Dividend Yield of 2.24%.
Compared to an average industry Dividend Yield of 3.53, MGEE is paying slightly less dividend.
MGEE's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
The dividend of MGEE has a limited annual growth rate of 4.91%.
MGEE has paid a dividend for at least 10 years, which is a reliable track record.
MGEE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.91%
Div Incr Years32
Div Non Decr Years32
5.3 Sustainability
50.01% of the earnings are spent on dividend by MGEE. This is a bit on the high side, but may be sustainable.
The dividend of MGEE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.01%
EPS Next 2Y9.72%
EPS Next 3Y8.87%
86.01
-1.48 (-1.69%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners62.86%
Inst Owner Change-2.38%
Ins Owners0.24%
Ins Owner Change8.87%
Market Cap3.14B
Analysts37.14
Price Target73.44 (-14.61%)
Short Float %2.35%
Short Ratio5.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend1.75
Dividend Growth(5Y)4.91%
DP50.01%
Div Incr Years32
Div Non Decr Years32
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.57%
Min EPS beat(2)-3.3%
Max EPS beat(2)6.44%
EPS beat(4)1
Avg EPS beat(4)-7.74%
Min EPS beat(4)-28.8%
Max EPS beat(4)6.44%
EPS beat(8)1
Avg EPS beat(8)-9.75%
EPS beat(12)3
Avg EPS beat(12)-7.65%
EPS beat(16)4
Avg EPS beat(16)-7.45%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.7%
PT rev (3m)0%
EPS NQ rev (1m)-5%
EPS NQ rev (3m)-8.8%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 21.46 | ||
| P/S | 4.38 | ||
| P/FCF | 71.03 | ||
| P/OCF | 11.17 | ||
| P/B | 2.47 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 14.23 |
EPS(TTM)3.6
EY4.19%
EPS(NY)4.01
Fwd EY4.66%
FCF(TTM)1.21
FCFY1.41%
OCF(TTM)7.7
OCFY8.95%
SpS19.66
BVpS34.76
TBVpS34.76
PEG (NY)1.88
PEG (5Y)4.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.58% | ||
| ROE | 10.32% | ||
| ROCE | 5.92% | ||
| ROIC | 5.11% | ||
| ROICexc | 5.13% | ||
| ROICexgc | 5.13% | ||
| OM | 22.67% | ||
| PM (TTM) | 18.24% | ||
| GM | 82.7% | ||
| FCFM | 6.16% |
ROA(3y)4.36%
ROA(5y)4.33%
ROE(3y)10.13%
ROE(5y)10.03%
ROIC(3y)4.89%
ROIC(5y)4.73%
ROICexc(3y)4.91%
ROICexc(5y)4.77%
ROICexgc(3y)4.91%
ROICexgc(5y)4.77%
ROCE(3y)5.74%
ROCE(5y)5.55%
ROICexcg growth 3Y1.41%
ROICexcg growth 5Y-1.04%
ROICexc growth 3Y1.41%
ROICexc growth 5Y-1.04%
OM growth 3Y3.77%
OM growth 5Y2.08%
PM growth 3Y0.7%
PM growth 5Y3.12%
GM growth 3Y2.47%
GM growth 5Y1.05%
F-Score7
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 17.45 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 213.41% | ||
| Cap/Sales | 33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.68% | ||
| Profit Quality | 33.76% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.05 |
F-Score7
WACC7.98%
ROIC/WACC0.64
Cap/Depr(3y)214.72%
Cap/Depr(5y)223.37%
Cap/Sales(3y)30.55%
Cap/Sales(5y)30.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.85%
EPS 3Y4.36%
EPS 5Y5.8%
EPS Q2Q%9.09%
EPS Next Y12.72%
EPS Next 2Y9.72%
EPS Next 3Y8.87%
EPS Next 5Y7.38%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y3.73%
Revenue growth 5Y3.54%
Sales Q2Q%9.43%
Revenue Next Year6.19%
Revenue Next 2Y4.83%
Revenue Next 3Y4.25%
Revenue Next 5Y4.49%
EBIT growth 1Y17.64%
EBIT growth 3Y7.63%
EBIT growth 5Y5.69%
EBIT Next Year94.25%
EBIT Next 3Y30.46%
EBIT Next 5Y24.75%
FCF growth 1Y193.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y66.06%
OCF growth 3Y26.42%
OCF growth 5Y16.31%