MGE ENERGY INC (MGEE)
US55277P1049 - Common Stock
MGEE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 45 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 valied quite expensively at the moment, while 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.
Each year in the past 5 years MGEE has been profitable.
In the past 5 years MGEE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MGEE (4.40%) is better than 91.11% of its industry peers.
The Return On Equity of MGEE (10.33%) is better than 73.33% of its industry peers.
MGEE's Return On Invested Capital of 4.63% is amongst the best of the industry. MGEE outperforms 84.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGEE is in line with the industry average of 4.92%.
The last Return On Invested Capital (4.63%) for MGEE is above the 3 year average (4.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 10.33% | ||
| ROIC | 4.63% |
ROA(3y)4.42%
ROA(5y)4.31%
ROE(3y)10.29%
ROE(5y)10.1%
ROIC(3y)4.52%
ROIC(5y)4.47%
1.3 Margins
With an excellent Profit Margin value of 17.06%, MGEE belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
MGEE's Profit Margin has improved in the last couple of years.
MGEE has a better Operating Margin (21.20%) than 62.22% of its industry peers.
MGEE's Operating Margin has been stable in the last couple of years.
MGEE has a Gross Margin of 78.59%. This is in the better half of the industry: MGEE outperforms 77.78% 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 | 21.2% | ||
| PM (TTM) | 17.06% | ||
| GM | 78.59% |
OM growth 3Y1.26%
OM growth 5Y0.77%
PM growth 3Y-0.21%
PM growth 5Y2.54%
GM growth 3Y-0.68%
GM growth 5Y0.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGEE is destroying value.
MGEE has about the same amout of shares outstanding than it did 1 year ago.
MGEE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MGEE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.98 indicates that MGEE is not a great score, but indicates only limited risk for bankruptcy at the moment.
MGEE's Altman-Z score of 1.98 is amongst the best of the industry. MGEE outperforms 91.11% of its industry peers.
MGEE has a debt to FCF ratio of 50.36. This is a negative value and a sign of low solvency as MGEE would need 50.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 50.36, MGEE belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that MGEE is somewhat dependend on debt financing.
MGEE has a Debt to Equity ratio of 0.68. This is amongst the best in the industry. MGEE outperforms 82.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 50.36 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.59
WACC7.87%
2.3 Liquidity
MGEE has a Current Ratio of 1.52. This is a normal value and indicates that MGEE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.52, MGEE is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
A Quick Ratio of 1.05 indicates that MGEE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.05, MGEE is in the better half of the industry, outperforming 62.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.21% over the past year.
MGEE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.00% yearly.
MGEE shows a decrease in Revenue. In the last year, the revenue decreased by -3.35%.
MGEE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.28% yearly.
EPS 1Y (TTM)6.21%
EPS 3Y7.75%
EPS 5Y6%
EPS growth Q2Q-5.17%
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y8.63%
Revenue growth 5Y4.28%
Revenue growth Q2Q-13.25%
3.2 Future
MGEE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.04% yearly.
Based on estimates for the next years, MGEE will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
EPS Next Y15.5%
EPS Next 2Y12.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.19%
Revenue Next 2Y2.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MGEE is valuated rather expensively with a Price/Earnings ratio of 24.71.
84.44% of the companies in the same industry are cheaper than MGEE, based on the Price/Earnings ratio.
MGEE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.40 indicates a rather expensive valuation of MGEE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGEE indicates a rather expensive valuation: MGEE more expensive than 80.00% of the companies listed in the same industry.
MGEE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.71 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGEE indicates a rather expensive valuation: MGEE more expensive than 80.00% of the companies listed in the same industry.
77.78% 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 | 187.55 | ||
| EV/EBITDA | 14.75 |
4.3 Compensation for Growth
MGEE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MGEE has an outstanding profitability rating, which may justify a higher PE ratio.
MGEE's earnings are expected to grow with 12.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.59
PEG (5Y)4.12
EPS Next 2Y12.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MGEE has a Yearly Dividend Yield of 2.10%.
MGEE's Dividend Yield is slightly below the industry average, which is at 4.01.
Compared to an average S&P500 Dividend Yield of 2.34, MGEE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
The dividend of MGEE has a limited annual growth rate of 4.81%.
MGEE has paid a dividend for at least 10 years, which is a reliable track record.
MGEE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.81%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
MGEE pays out 51.27% of its income as dividend. 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.
DP51.27%
EPS Next 2Y12.04%
EPS Next 3YN/A
MGE ENERGY INC
NASDAQ:MGEE (5/16/2024, 8:46:30 AM)
80.32
-0.08 (-0.1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.71 | ||
| Fwd PE | 21.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.59
PEG (5Y)4.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 10.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.2% | ||
| PM (TTM) | 17.06% | ||
| GM | 78.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)6.21%
EPS 3Y7.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.35%
Revenue growth 3Y8.63%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y