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MGE Energy Inc (MGEE)



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Upturn Advisory Summary
06/30/2025: MGEE (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $75
1 Year Target Price $75
0 | Strong Buy |
0 | Buy |
0 | Hold |
1 | Sell |
2 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -5.55% | Avg. Invested days 51 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.22B USD | Price to earnings Ratio 24.9 | 1Y Target Price 75 |
Price to earnings Ratio 24.9 | 1Y Target Price 75 | ||
Volume (30-day avg) 3 | Beta 0.77 | 52 Weeks Range 70.88 - 107.68 | Updated Date 06/29/2025 |
52 Weeks Range 70.88 - 107.68 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 2.04% | Basic EPS (TTM) 3.54 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 18.67% | Operating Margin (TTM) 25.54% |
Management Effectiveness
Return on Assets (TTM) 3.82% | Return on Equity (TTM) 10.62% |
Valuation
Trailing PE 24.9 | Forward PE - | Enterprise Value 3953456049 | Price to Sales(TTM) 4.68 |
Enterprise Value 3953456049 | Price to Sales(TTM) 4.68 | ||
Enterprise Value to Revenue 5.61 | Enterprise Value to EBITDA 13.89 | Shares Outstanding 36539400 | Shares Floating 36455747 |
Shares Outstanding 36539400 | Shares Floating 36455747 | ||
Percent Insiders 0.24 | Percent Institutions 62.64 |
Analyst Ratings
Rating 2 | Target Price 75 | Buy - | Strong Buy - |
Buy - | Strong Buy - | ||
Hold - | Sell 1 | Strong Sell 2 | |
Strong Sell 2 |
Upturn AI SWOT
MGE Energy Inc

Company Overview
History and Background
MGE Energy, Inc. was founded in 1901 as Madison Gas and Electric Company (MGE). It has evolved from a local utility to a holding company focused on the energy sector, serving south-central Wisconsin.
Core Business Areas
- Regulated Electric Utility: MGE's regulated electric utility segment generates, purchases, and distributes electricity to customers primarily in Dane County, Wisconsin.
- Regulated Gas Utility: MGE's regulated gas utility segment purchases and distributes natural gas to customers in the same service territory.
- Non-regulated Energy Operations: Includes investments in wind and solar energy projects outside MGE's regulated service territory. These are held through subsidiary companies.
Leadership and Structure
MGE Energy is led by a board of directors and an executive management team. The organizational structure is hierarchical, with divisions responsible for electric, gas, and other operations. Jeff Keebler is the current Chairman, President, and CEO.
Top Products and Market Share
Key Offerings
- Electricity Distribution: Distribution of electricity to residential, commercial, and industrial customers. MGE has a high market share within its service territory. Competitors are other energy sources (e.g., solar) and energy efficiency measures.
- Natural Gas Distribution: Distribution of natural gas to residential, commercial, and industrial customers. MGE has a high market share within its service territory. Competitors are alternative heating fuels (e.g., propane, oil) and electrification.
- Renewable Energy: Investments in and sale of renewable energy generated by owned facilities. Competing with other power generation companies.
Market Dynamics
Industry Overview
The energy industry is undergoing a significant transformation driven by decarbonization, decentralization, and digitalization. Renewable energy sources are gaining market share, and energy efficiency is becoming increasingly important.
Positioning
MGE Energy is positioned as a reliable provider of electricity and natural gas in its service territory. It is also investing in renewable energy projects to meet customer demand and regulatory requirements.
Total Addressable Market (TAM)
The total addressable market encompasses the energy needs of its service territory, plus opportunities in renewable energy investments. Exact TAM is difficult to estimate but includes billions in energy spending in Wisconsin. MGE is positioned to capture a significant portion of this TAM by increasing investments in renewable energy.
Upturn SWOT Analysis
Strengths
- Established presence in its service territory
- Reliable infrastructure
- Strong regulatory relationships
- Growing investments in renewable energy
- Good financial performance
Weaknesses
- Geographic concentration
- Reliance on regulated business
- Exposure to commodity price fluctuations
- Limited growth opportunities outside of Wisconsin
Opportunities
- Increased demand for renewable energy
- Expansion of energy efficiency programs
- Investment in grid modernization
- Strategic acquisitions in the renewable energy sector
Threats
- Increased competition from alternative energy sources
- Changes in regulatory policies
- Economic downturns
- Technological disruptions
- Environmental regulations
Competitors and Market Share
Key Competitors
- WEC (WEC)
- CMS (CMS)
- XEL (XEL)
Competitive Landscape
MGE Energy competes with other utilities for customers and investment opportunities. Its competitive advantage lies in its established presence in its service territory and its commitment to renewable energy.
Major Acquisitions
Bluestem Solar Project
- Year: 2020
- Acquisition Price (USD millions): 65.3
- Strategic Rationale: Increased MGE's renewable generation capacity.
Growth Trajectory and Initiatives
Historical Growth: MGE Energy has experienced steady, albeit moderate, growth in revenue and earnings over the past few years, driven by population growth and investments in renewable energy.
Future Projections: Future growth is expected to be driven by increased demand for electricity and natural gas, as well as investments in renewable energy projects. Analyst estimates predict single-digit revenue growth over the next few years.
Recent Initiatives: Recent initiatives include investments in new solar and wind energy projects, as well as energy efficiency programs.
Summary
MGE Energy is a stable and well-managed utility company with a strong presence in its service territory. Its investment in renewable energy positions it well for future growth. However, its geographic concentration and reliance on regulated business present some risks. Strong reliable dividend paying company.
Peer Comparison
Sources and Disclaimers
Data Sources:
- MGE Energy Inc. Annual Reports
- SEC Filings
- Company Website
- Analyst Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About MGE Energy Inc
Exchange NASDAQ | Headquaters Madison, WI, United States | ||
IPO Launch date 1990-03-26 | President, CEO & Chairman of the Board Mr. Jeffrey M. Keebler | ||
Sector Utilities | Industry Utilities - Regulated Electric | Full time employees 717 | Website https://www.mgeenergy.com |
Full time employees 717 | Website https://www.mgeenergy.com |
MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company in the United States. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other segments. The company generates, purchases, and distributes electricity; purchases and distributes natural gas; owns and leases electric generating capacity; and plans, constructs, operates, maintains, and expands transmission facilities to provide transmission power services. It also generates electricity from coal-fired, gas-fired, and renewable energy sources; and provides solar and wind generation, and battery storage services. As of December 31, 2024, the company owned and operated 825 miles of overhead electric distribution lines; 1,359 miles of underground electric distribution cables; 48 substations with an installed capacity of 1.2 million kVA; and gas facilities, including 3,092 miles of distribution mains, as well as supplied electric service to approximately 167,000 customers. MGE Energy, Inc. was incorporated in 2001 and is headquartered in Madison, Wisconsin.
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