MGE ENERGY INC (MGEE) Stock Fundamental Analysis
USA - NASDAQ:MGEE - US55277P1049 - Common Stock
83.25 USD
-0.12 (-0.14%)
83.25 USD
0 (0%)
Taking everything into account, MGEE scores 5 out of 10 in our fundamental rating. MGEE was compared to 47 industry peers in the Electric Utilities industry. MGEE has an excellent profitability rating, but there are some minor concerns on its financial health. MGEE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MGEE was profitable.
In the past year MGEE had a positive cash flow from operations.
MGEE had positive earnings in each of the past 5 years.
In the past 5 years MGEE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.58%, MGEE belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.32%, MGEE is in line with its industry, outperforming 51.06% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.11%, MGEE is doing good in the industry, outperforming 76.60% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MGEE is in line with the industry average of 4.90%.
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
The Profit Margin of MGEE (18.24%) is better than 91.49% of its industry peers.
MGEE's Profit Margin has improved in the last couple of years.
The Operating Margin of MGEE (22.67%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MGEE has grown nicely.
With a decent Gross Margin value of 82.70%, MGEE is doing good in the industry, outperforming 78.72% of the companies in the same industry.
MGEE's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for MGEE has been increased compared to 1 year ago.
Compared to 5 years ago, MGEE has more shares outstanding
Compared to 1 year ago, MGEE has an improved debt to assets ratio.
2.2 Solvency
MGEE has an Altman-Z score of 2.02. This is not the best score and indicates that MGEE is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.02, 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.
With a decent Debt to FCF ratio value of 17.45, MGEE is doing good in 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 | 2.02 |
ROIC/WACC0.65
WACC7.85%
2.3 Liquidity
MGEE has a Current Ratio of 1.80. This is a normal value and indicates that MGEE is financially healthy and should not expect problems in meeting 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.
MGEE has a Quick Ratio of 1.20. This is a normal value and indicates that MGEE is financially healthy and should not expect problems in meeting its short term obligations.
MGEE has a Quick ratio of 1.20. This is amongst the best in the industry. MGEE outperforms 82.98% 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 12.84% over the past year.
MGEE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.80% yearly.
Looking at the last year, MGEE shows a decrease in Revenue. The Revenue has decreased by -1.95% 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)12.84%
EPS 3Y4.36%
EPS 5Y5.8%
EPS Q2Q%7.96%
Revenue 1Y (TTM)-1.95%
Revenue growth 3Y3.73%
Revenue growth 5Y3.54%
Sales Q2Q%N/A
3.2 Future
MGEE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.05% yearly.
Based on estimates for the next years, MGEE will show a small growth in Revenue. The Revenue will grow by 3.92% on average per year.
EPS Next Y12.58%
EPS Next 2Y9.68%
EPS Next 3Y8.6%
EPS Next 5Y7.05%
Revenue Next Year6.12%
Revenue Next 2Y4.71%
Revenue Next 3Y4.12%
Revenue Next 5Y3.92%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
MGEE is valuated rather expensively with a Price/Earnings ratio of 22.56.
Based on the Price/Earnings ratio, MGEE is valued a bit more expensive than the industry average as 78.72% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.28, MGEE is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.78, the valuation of MGEE can be described as rather expensive.
MGEE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MGEE is more expensive than 76.60% of the companies in the same industry.
MGEE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 33.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 20.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGEE is valued a bit more expensive than the industry average as 72.34% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGEE indicates a somewhat cheap valuation: MGEE is cheaper than 72.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.75 | ||
| EV/EBITDA | 13.88 |
4.3 Compensation for Growth
MGEE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of MGEE may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)3.89
EPS Next 2Y9.68%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
MGEE has a Yearly Dividend Yield of 2.28%.
Compared to an average industry Dividend Yield of 3.23, MGEE is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, MGEE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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
MGEE pays out 50.01% of its income as dividend. This is a bit on the high side, but may be sustainable.
MGEE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.01%
EPS Next 2Y9.68%
EPS Next 3Y8.6%
83.25
-0.12 (-0.14%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners62.43%
Inst Owner Change0.07%
Ins Owners0.24%
Ins Owner Change0.62%
Market Cap3.04B
Revenue(TTM)676.94M
Net Income(TTM)131.05M
Analysts42.86
Price Target81.86 (-1.67%)
Short Float %1.87%
Short Ratio5.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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)1.26%
PT rev (3m)11.46%
EPS NQ rev (1m)4.39%
EPS NQ rev (3m)4.39%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 20.78 | ||
| P/S | 4.23 | ||
| P/FCF | 68.75 | ||
| P/OCF | 10.81 | ||
| P/B | 2.4 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 13.88 |
EPS(TTM)3.69
EY4.43%
EPS(NY)4.01
Fwd EY4.81%
FCF(TTM)1.21
FCFY1.45%
OCF(TTM)7.7
OCFY9.25%
SpS19.66
BVpS34.76
TBVpS34.76
PEG (NY)1.79
PEG (5Y)3.89
Graham Number53.72
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%
ROICexgc growth 3Y1.41%
ROICexgc 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 | 2.02 |
F-Score7
WACC7.85%
ROIC/WACC0.65
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)12.84%
EPS 3Y4.36%
EPS 5Y5.8%
EPS Q2Q%7.96%
EPS Next Y12.58%
EPS Next 2Y9.68%
EPS Next 3Y8.6%
EPS Next 5Y7.05%
Revenue 1Y (TTM)-1.95%
Revenue growth 3Y3.73%
Revenue growth 5Y3.54%
Sales Q2Q%N/A
Revenue Next Year6.12%
Revenue Next 2Y4.71%
Revenue Next 3Y4.12%
Revenue Next 5Y3.92%
EBIT growth 1Y17.64%
EBIT growth 3Y7.63%
EBIT growth 5Y5.69%
EBIT Next Year95.76%
EBIT Next 3Y31.12%
EBIT Next 5Y22.01%
FCF growth 1Y193.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y66.06%
OCF growth 3Y26.42%
OCF growth 5Y16.31%
MGE ENERGY INC / MGEE FAQ
Can you provide the ChartMill fundamental rating for MGE ENERGY INC?
ChartMill assigns a fundamental rating of 5 / 10 to MGEE.
What is the valuation status of MGE ENERGY INC (MGEE) stock?
ChartMill assigns a valuation rating of 3 / 10 to MGE ENERGY INC (MGEE). This can be considered as Overvalued.
Can you provide the profitability details for MGE ENERGY INC?
MGE ENERGY INC (MGEE) has a profitability rating of 7 / 10.
What is the financial health of MGE ENERGY INC (MGEE) stock?
The financial health rating of MGE ENERGY INC (MGEE) is 5 / 10.
Can you provide the dividend sustainability for MGEE stock?
The dividend rating of MGE ENERGY INC (MGEE) is 5 / 10 and the dividend payout ratio is 50.01%.