MGE Energy, Inc. (MGEE)
MGE Energy, Inc. is a public utility holding company operating primarily in Wisconsin. It generates and distributes electricity and natural gas to a significant customer base, focusing on regulated utility operations and investments in transmission facilities.
Company Overview
MGE Energy (MGEE) offers investors a stable dividend yield of 2.32% and consistent profitability within the regulated utility sector, driven by its strong market position in Wisconsin and commitment to renewable energy sources, making it a reliable long-term investment.
Investment Thesis
MGE Energy presents a compelling investment opportunity due to its stable, regulated business model and commitment to renewable energy. With a current P/E ratio of 21.60 and a healthy profit margin of 18.6%, MGEE demonstrates consistent profitability. The company's 2.32% dividend yield provides a steady income stream for investors. Growth catalysts include ongoing investments in renewable energy projects and upgrades to transmission infrastructure, positioning MGEE to benefit from the increasing demand for clean energy. Furthermore, the company's strong market position in Wisconsin and focus on operational efficiency should drive long-term value creation. Investors should consider MGEE for its stability, income potential, and growth prospects within the evolving energy landscape.
Key Highlights
- Market capitalization of $2.91 billion, reflecting substantial investor confidence in MGE Energy's stability and growth potential.
- P/E ratio of 21.60, indicating a reasonable valuation relative to earnings.
- Profit margin of 18.6%, demonstrating strong operational efficiency and profitability.
- Gross margin of 56.1%, showcasing the company's ability to manage costs effectively.
- Dividend yield of 2.32%, providing a consistent income stream for investors.
Competitors
Strengths
- Stable revenue stream from regulated utility operations.
- Strong market position in Wisconsin.
- Commitment to renewable energy.
- Reliable transmission infrastructure.
Weaknesses
- Limited geographic diversification.
- Exposure to regulatory risks.
- Dependence on fossil fuels for electricity generation.
- Vulnerability to weather-related disruptions.
Catalysts
- Ongoing: Investments in renewable energy projects, driving long-term growth and sustainability.
- Ongoing: Modernization of transmission infrastructure to improve reliability and efficiency.
- Upcoming: Regulatory approvals for new renewable energy projects, expected in Q3 2026.
- Ongoing: Development of customer-focused energy solutions to enhance customer satisfaction and loyalty.
Risks
- Potential: Changes in government regulations and environmental policies could impact profitability.
- Potential: Rising fuel costs could increase operating expenses.
- Potential: Cybersecurity threats to critical infrastructure could disrupt operations.
- Ongoing: Weather-related disruptions could impact service reliability and increase costs.
- Potential: Economic downturn in Wisconsin could reduce energy demand.
Growth Opportunities
- Expansion of Renewable Energy Portfolio: MGE Energy has the opportunity to significantly expand its renewable energy portfolio, including solar, wind, and biogas projects. The increasing demand for clean energy, driven by government mandates and consumer preferences, creates a substantial market for renewable energy development. By investing in these projects, MGE Energy can reduce its carbon footprint, enhance its brand image, and generate long-term revenue streams. The company can target a market size of $500 million in renewable energy investments over the next five years, leveraging its expertise and partnerships to capitalize on this growth opportunity.
- Modernization of Transmission Infrastructure: Upgrading and expanding its transmission infrastructure presents a significant growth opportunity for MGE Energy. Modernizing the grid will improve reliability, reduce energy losses, and enable the integration of more renewable energy sources. The company can invest in smart grid technologies, advanced metering infrastructure, and high-voltage transmission lines to enhance the efficiency and resilience of its network. This initiative can attract regulatory support and funding, creating a market opportunity of $300 million over the next three years.
- Strategic Acquisitions and Partnerships: MGE Energy can pursue strategic acquisitions and partnerships to expand its geographic reach and service offerings. By acquiring smaller utility companies or partnering with technology providers, MGE Energy can diversify its revenue streams and enhance its competitive position. The company can target acquisitions in adjacent markets or partnerships with companies specializing in energy storage, electric vehicle charging, or smart home solutions. This strategy can create a market opportunity of $200 million over the next five years.
- Customer-Focused Energy Solutions: MGE Energy can drive growth by offering innovative, customer-focused energy solutions. This includes developing energy efficiency programs, demand response initiatives, and personalized energy management tools. By empowering customers to reduce their energy consumption and manage their bills effectively, MGE Energy can enhance customer satisfaction and loyalty. The company can also offer customized energy solutions for businesses, such as on-site generation, energy storage, and microgrids. This approach can unlock a market opportunity of $150 million over the next three years.
- Investment in Energy Storage Solutions: Energy storage is becoming increasingly important for grid stability and reliability, especially with the growth of intermittent renewable energy sources. MGE Energy can invest in battery storage systems, pumped hydro storage, and other energy storage technologies to enhance its ability to balance supply and demand. By deploying energy storage solutions, MGE Energy can reduce its reliance on fossil fuels, improve grid resilience, and generate revenue from ancillary services. This investment can create a market opportunity of $100 million over the next five years.
Opportunities
- Expansion of renewable energy portfolio.
- Modernization of transmission infrastructure.
- Strategic acquisitions and partnerships.
- Development of customer-focused energy solutions.
Threats
- Increasing competition from alternative energy providers.
- Changes in government regulations and environmental policies.
- Rising fuel costs.
- Cybersecurity threats to critical infrastructure.
Competitive Advantages
- Regulated utility operations provide a stable and predictable revenue stream.
- Strong market position in Wisconsin with a large customer base.
- Investments in transmission infrastructure create barriers to entry.
- Commitment to renewable energy enhances brand reputation and attracts environmentally conscious customers.
About
MGE Energy, Inc. was founded with the mission of providing reliable and affordable energy solutions to its customers. Over the years, the company has evolved from a local utility provider to a diversified energy holding company with operations spanning regulated electric and gas utilities, non-regulated energy projects, and transmission investments. The company's core business involves generating, purchasing, and distributing electricity to approximately 159,000 customers in Dane County, Wisconsin, as of December 31, 2021. Additionally, MGE Energy distributes natural gas to around 169,000 customers across seven Wisconsin counties. The company operates and maintains electric generation facilities in Wisconsin and Iowa, utilizing a mix of coal-fired, gas-fired, and renewable energy sources. MGE Energy is committed to expanding its renewable energy portfolio and investing in transmission infrastructure to enhance service reliability and support future growth. Headquartered in Madison, Wisconsin, MGE Energy is deeply rooted in the local community and focused on delivering long-term value to its shareholders and customers.
What They Do
- Generates and distributes electricity to residential, commercial, and industrial customers.
- Purchases and distributes natural gas to customers in multiple counties.
- Owns and operates electric generation facilities in Wisconsin and Iowa.
- Invests in renewable energy sources, such as solar, wind, and biogas.
- Plans, constructs, and maintains transmission facilities.
- Provides transmission services to other utilities and energy providers.
- Offers energy efficiency programs and solutions to customers.
Business Model
- Generates revenue through regulated electric utility operations.
- Generates revenue through regulated gas utility operations.
- Generates revenue through non-regulated energy operations.
- Earns income from investments in transmission facilities.
Industry Context
MGE Energy operates within the diversified utilities sector, which is characterized by stable demand and regulated pricing. The industry is undergoing a significant transformation driven by the increasing adoption of renewable energy sources and the modernization of grid infrastructure. MGE Energy competes with other utility companies in the region, such as Alliant Energy (ALE), and focuses on differentiating itself through its commitment to sustainability and customer service. The market is influenced by government regulations, environmental policies, and technological advancements in energy generation and distribution. The utilities sector is expected to see continued growth in renewable energy investments and grid modernization projects.
Key Customers
- Residential customers in Dane County, Wisconsin.
- Commercial customers in Dane County, Wisconsin.
- Industrial customers in Dane County, Wisconsin.
- Natural gas customers in seven Wisconsin counties.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2023 | $161M | $38M | $0.00 |
| Q2 2023 | $148M | $29M | $0.00 |
| Q1 2023 | $217M | $31M | $0.00 |
| Q4 2022 | $190M | $21M | $0.00 |
Source: Company filings
Chart & Info
Price Chart
MGE Energy, Inc. (MGEE) stock price: $82.88 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in MGE Energy's future, indicating that executives believe in the company's growth potential.
- •Community sentiment has leaned positive, with discussions highlighting the company's commitment to renewable energy and sustainability efforts.
- •MGE Energy's strong operational performance has been recognized, with a focus on efficient energy delivery and customer service, boosting public perception.
- •The growing demand for clean energy solutions aligns well with MGE's strategic initiatives, making it a favorable choice among environmentally conscious investors.
Why Bear
- •Concerns over regulatory changes in the energy sector may impact MGE Energy's operational flexibility and profitability in the long run.
- •Some community members express skepticism regarding the pace of MGE's transition to renewable energy, questioning its ability to adapt quickly enough to market demands.
- •Recent discussions have highlighted potential competitive pressures from other energy providers, which could threaten MGE's market share.
- •Increased operational costs due to inflationary pressures could negatively affect MGE's margins, raising concerns among investors about future profitability.
Latest News
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American Electric Power (AEP) Beats Q4 Earnings and Revenue Estimates
Zacks · Feb 12, 2026
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American Electric Power (AEP) Beats Q4 Earnings and Revenue Estimates
Yahoo! Finance: MGEE News · Feb 12, 2026
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Morgan Stanley Maintains Underweight on MGE Energy, Lowers Price Target to $73
benzinga · Feb 2, 2026
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Reviewing MGE Energy (NASDAQ:MGEE) and Algonquin Power & Utilities (NYSE:AQN)
defenseworld.net · Jan 28, 2026
Technical Analysis
Rationale
AI-generated technical analysis for MGEE including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for MGEE.
Make a Prediction
Set your price target for MGE Energy, Inc. (MGEE), choose a timeframe, and track your prediction accuracy.
Current price: $82.88
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for MGEE.
Price Targets
Wall Street price target analysis for MGEE.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 2/100
Revenue declined -2.0% YoY, signaling shrinking demand or market headwinds.
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Gross Margin 8/100
Gross margin at 42.8% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates MGEE's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
American Electric Power (AEP) Beats Q4 Earnings and Revenue Estimates
American Electric Power (AEP) Beats Q4 Earnings and Revenue Estimates
Morgan Stanley Maintains Underweight on MGE Energy, Lowers Price Target to $73
Reviewing MGE Energy (NASDAQ:MGEE) and Algonquin Power & Utilities (NYSE:AQN)
Frequently Asked Questions
What does MGE Energy, Inc. do?
MGE Energy, Inc. operates as a public utility holding company, primarily in Wisconsin, focusing on regulated electric and gas utility operations. The company generates, purchases, and distributes electricity to approximately 159,000 customers in Dane County, Wisconsin, as of December 31, 2021. It also purchases and distributes natural gas to around 169,000 customers in seven Wisconsin counties. MGE Energy invests in renewable energy sources and maintains transmission facilities to provide reliable energy services. The company's business model centers on providing essential utility services while adapting to the evolving energy landscape.
Is MGEE stock a good buy?
MGEE stock presents a potentially attractive investment opportunity, given its stable, regulated business model and commitment to renewable energy. The company's dividend yield of 2.32% offers a steady income stream, and its profit margin of 18.6% indicates strong operational efficiency. However, investors should consider the company's P/E ratio of 21.60 and potential regulatory risks. The growth potential lies in expanding its renewable energy portfolio and modernizing its transmission infrastructure. A balanced analysis suggests MGEE could be a good buy for investors seeking stable income and long-term growth within the utility sector.
What are the main risks for MGEE?
MGEE faces several key risks inherent to the utility sector. Changes in government regulations and environmental policies could significantly impact its profitability and investment strategies. Rising fuel costs could increase operating expenses, potentially squeezing margins. Cybersecurity threats pose a constant risk to its critical infrastructure, potentially disrupting operations. Weather-related disruptions can also affect service reliability and increase costs. Additionally, an economic downturn in Wisconsin could reduce energy demand, impacting revenue. These risks warrant careful consideration by potential investors.
Is MGEE a good stock to buy?
Whether MGEE is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the MGEE MoonshotScore?
The MoonshotScore for MGEE is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is MGEE data updated?
MGEE stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to MGEE is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for MGEE?
Growth catalysts for MGE Energy, Inc. (MGEE) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes MGE Energy, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are MGEE's main competitors?
MGE Energy, Inc. (MGEE) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether MGEE has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about MGEE?
Wall Street analyst coverage for MGEE includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is MGEE's market cap?
Market capitalization (market cap) for MGEE is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows MGEE's current market cap alongside enterprise value and other valuation metrics.
How has MGEE stock performed recently?
MGEE's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing MGEE's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in MGEE?
Key risk categories for MGEE include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures MGEE's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling MGEE?
Insider trading activity for MGEE tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is MGEE a good stock for beginners?
MGE Energy, Inc. (MGEE) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is MGEE for first-time investors?
Every stock carries risk, including MGE Energy, Inc. (MGEE). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like MGEE.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Future performance is subject to market conditions and regulatory changes.