MGE Energy, Inc. (MGEE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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MGE Energy, Inc.

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ALLETE, Inc.

Why is MGE Energy, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.64% and Operating profit at 7.30% over the last 5 years

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 281.3 MM
ROCE(HY) Highest at 10.75%
DIVIDEND PER SHARE(HY) Highest at USD 8.43

With ROCE of 8.10%, it has a expensive valuation with a 1.99 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -21.59%, its profits have risen by 6.6% ; the PEG ratio of the company is 4.5

High Institutional Holdings at 64.61%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -21.59% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MGE Energy, Inc. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is MGE Energy, Inc. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

MGE Energy, Inc.

-24.17%

0.36

20.40%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.64%

EBIT Growth (5y)

7.30%

EBIT to Interest (avg)

4.98

Debt to EBITDA (avg)

2.89

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

0.36

Tax Ratio

9.89%

Dividend Payout Ratio

52.75%

Pledged Shares

Institutional Holding

64.61%

ROCE (avg)

7.79%

ROE (avg)

10.12%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.56

EV to EBIT

24.52

EV to EBITDA

14.59

EV to Capital Employed

1.99

EV to Sales

5.61

PEG Ratio

4.50

Dividend Yield

2.03%

ROCE (Latest)

8.10%

ROE (Latest)

10.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 281.3 MM

ROCE(HY)

Highest at 10.75%

DIVIDEND PER SHARE(HY)

Highest at USD 8.43

RAW MATERIAL COST(Y)

Fallen by -5.75% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 59.9 %

-3What is not working for the Company

INTEREST(Q)

Highest at USD 8.46 MM

Here's what is working for MGE Energy, Inc.

Operating Cash Flow

Highest at USD 281.3 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 8.43 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Debt-Equity Ratio

Lowest at 59.9 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -5.75% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 28.35 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for MGE Energy, Inc.

Interest

At USD 8.46 MM has Grown at 11.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 8.46 MM

in the last five periods and Increased by 11.56% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)