MGE Energy Inc.

Valuation Analysis

About the Company

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, 2025, the company owned and operated 811 miles of overhead electric di

MGE Energy Inc. Stock at a Glance

MGE Energy Inc. (MGEE) is currently trading at $77.66 with a market capitalization of $2.9B. The trailing P/E ratio stands at 19.91x, with a forward P/E of 18.71x. The 52-week range spans from $72.16 to $91.49; the current price is 15.1% below the yearly high. Year-over-year revenue growth stands at +10.8%. The net profit margin stands at 19.03%.

💰 Dividend

MGE Energy Inc. pays an annual dividend of $1.90 per share, representing a yield of 2.45%. The payout ratio stands at 48.08%.

📊 Analyst Rating

4 analysts rate MGE Energy Inc. (MGEE) on consensus: Hold. The average price target is $76.25, implying -1.82% from the current price. Analyst price targets range from $70.00 to $81.00.

MGE Energy Inc.: The Investment Case in Detail

MGE Energy Inc. (MGEE) operates in the Utilities — specifically Utilities - Regulated Electric — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 10.8% pace year-over-year, suggesting the business model continues to find new customers and pricing power. The combination of a 41.35% gross margin and 23.5% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

Valuation in Context

At a PEG of 4.12, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (5.54%).

Trading Data

💵 Dividend Info

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