79.12 USD
-0.09 (-0.11%)
79.12 USD
0 (0%)
MGEE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. MGEE scores excellent on profitability, but there are 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
- MGEE had positive earnings in the past year.
- 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
- MGEE's Return On Assets of 4.50% is amongst the best of the industry. MGEE outperforms 80.43% of its industry peers.
- MGEE has a Return On Equity (10.37%) which is comparable to the rest of the industry.
- MGEE's Return On Invested Capital of 5.02% is amongst the best of the industry. MGEE outperforms 82.61% 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 4.58%.
- The 3 year average ROIC (4.89%) for MGEE is below the current ROIC(5.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 10.37% | ||
| ROIC | 5.02% |
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
- With an excellent Profit Margin value of 18.55%, MGEE belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
- MGEE's Profit Margin has improved in the last couple of years.
- MGEE has a Operating Margin (22.85%) 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 (83.36%) is better than 76.09% 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 | 22.85% | ||
| PM (TTM) | 18.55% | ||
| GM | 83.36% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MGEE is destroying value.
- The number of shares outstanding for MGEE has been increased compared to 1 year ago.
- The number of shares outstanding for MGEE has been increased compared to 5 years ago.
- The debt/assets ratio for MGEE has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.83 indicates that MGEE is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 1.83, MGEE belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
- A Debt/Equity ratio of 0.63 indicates that MGEE is somewhat dependend on debt financing.
- MGEE's Debt to Equity ratio of 0.63 is fine compared to the rest of the industry. MGEE outperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.83 |
ROIC/WACC0.64
WACC7.89%
2.3 Liquidity
- MGEE has a Current Ratio of 0.91. This is a bad value and indicates that MGEE is not financially healthy enough and could expect problems in meeting its short term obligations.
- MGEE has a Current ratio of 0.91. This is in the better half of the industry: MGEE outperforms 60.87% of its industry peers.
- A Quick Ratio of 0.59 indicates that MGEE may have some problems paying its short term obligations.
- MGEE has a Quick ratio (0.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.84% over the past year.
- Measured over the past 5 years, MGEE shows a small growth in Earnings Per Share. The EPS has been growing by 5.80% on average per year.
- Looking at the last year, MGEE shows a quite strong growth in Revenue. The Revenue has grown by 8.26% in the last year.
- The Revenue has been growing slightly by 3.54% on average over the past years.
EPS 1Y (TTM)12.84%
EPS 3Y4.36%
EPS 5Y5.8%
EPS Q2Q%7.96%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y3.73%
Revenue growth 5Y3.54%
Sales Q2Q%4.27%
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 7.24% on average per year.
- MGEE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.30% yearly.
EPS Next Y12.58%
EPS Next 2Y9.68%
EPS Next 3Y8.6%
EPS Next 5Y7.24%
Revenue Next Year6.12%
Revenue Next 2Y4.71%
Revenue Next 3Y4.12%
Revenue Next 5Y4.3%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 21.44 indicates a rather expensive valuation of MGEE.
- Based on the Price/Earnings ratio, MGEE is valued a bit more expensive than the industry average as 69.57% of the companies are valued more cheaply.
- The average S&P500 Price/Earnings ratio is at 28.87. MGEE is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 19.75, MGEE is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, MGEE is valued a bit more expensive than the industry average as 69.57% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, MGEE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.44 | ||
| Fwd PE | 19.75 |
4.2 Price Multiples
- MGEE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MGEE is more expensive than 71.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.09 |
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 excellent profitability rating of MGEE may justify a higher PE ratio.
PEG (NY)1.7
PEG (5Y)3.7
EPS Next 2Y9.68%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
- MGEE has a Yearly Dividend Yield of 2.38%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.90, MGEE is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, MGEE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
- The dividend of MGEE has a limited annual growth rate of 4.91%.
- MGEE has been paying a dividend for at least 10 years, so it has 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)4.91%
Div Incr Years32
Div Non Decr Years32
5.3 Sustainability
- MGEE pays out 49.49% 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.
DP49.49%
EPS Next 2Y9.68%
EPS Next 3Y8.6%
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 for MGEE stock?
ChartMill assigns a valuation rating of 2 / 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 8 / 10.
What is the valuation of MGE ENERGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MGE ENERGY INC (MGEE) is 21.44 and the Price/Book (PB) ratio is 2.23.
What is the financial health of MGE ENERGY INC (MGEE) stock?
The financial health rating of MGE ENERGY INC (MGEE) is 3 / 10.