MGEE
MGE Energy, Inc.

MGE Energy, Inc.MGEE

Utilities · Utilities - Regulated Electric
80.26USD
+2.42%
Nov 09, 2026
MGEE overview ready
Regulated Electric and Gas Utility Expanding Regional Grid Capacity
Regulated local electric-and-gas utility and transmission investor serving the Madison, Wisconsin area; MGEE's utility subsidiary must plan, procure, rate-base and operate generation, distribution and transmission capacity as regional electricity demand and large-load requirements evolve.
Primary theme is lagging
Power / Grid is lagging (-16.9pp vs SPY over 21 sessions; 8 of 32 members ahead of SPY).
Advancing price action
Longer-term context reads early trend, with a near-term setup of daily reclaim.
Demanding valuation
The price embeds expectations that run ahead of the cash the business currently produces.
Low free cash flow yield
Free cash flow yield is weak.
Primary risk
Regulatory risk affecting rates and allowed returns.
Market Nov 6Filing Sep 30Price action Nov 8Research Jul 29

Conviction Level

PriceAction9.4BusinessPerformance7.0BusinessQuality6.6Valuation3.4ThemeMomentum1.0Improving — Revenue growth has accelerated, rising from +1.1% to +8.4% year over year. Diluted EPS is up 21% year over year at $1.48. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
Power / GridLagging
vs SPY
−16.9pp
Theme return
−21.9%
Beating SPY
8 of 32
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Advancing price action
Longer-term context reads early trend, with a near-term setup of daily reclaim.
EntryBreakout + retest

Price broke through the weekly SMA200, then retested it constructively and recovered — a fresh structural entry rather than a chase.

Key Financials

Market Cap
$3.0B
Avg Volume (60D)
188.1K
60 sessions
Revenue Growth YoY
+9.9%
FY2025 vs FY2024
Gross Margin
+41.4%
Operating Margin
+22.5%
Trailing twelve months
Free Cash Flow Yield
-3.4%
Distance from 200DMA
+4.4%
P/E
18.8x
EV / Sales
5.0x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Improving

Revenue growth has accelerated, rising from +1.1% to +8.4% year over year. Diluted EPS is up 21% year over year at $1.48.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthAccelerating
+8.4%
$190M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. n/a
  2. +11%
  3. +1.1%
  4. +8.4%
Earnings growthGrowing
+21%
Diluted EPS $1.48 vs $1.22 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. +16%
  3. +24%
  4. +21%
Operating marginStable
30.5%
+1.4 pp YoY

Business Quality

6.6 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

MGE Energy, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash the business currently produces. It trades at 5.0x revenue, which requires sustained delivery to be justified.

Company Research

Thesis
Regulated local electric-and-gas utility and transmission investor serving the Madison, Wisconsin area; MGEE's utility subsidiary must plan, procure, rate-base and operate generation, distribution and transmission capacity as regional electricity demand and large-load requirements evolve.
Opportunity
Moderate opportunity
Utility and large-load spending on substations, distribution upgrades and electrical capacity additions.
Key risk
Regulatory risk affecting rates and allowed returns.

Economic classification

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Business & Markets

Utilities · Utilities - Regulated Electric
What they do

MGE Energy, Inc. operates as a public utility holding company providing regulated electric and gas utility services, as well as transmission investments and nonregulated energy operations primarily in the Madison, Wisconsin area.

How it earns

The company generates revenue primarily through regulated utility rates approved by public utility commissions and investments in transmission infrastructure.

Products & services
Electricity generation and distribution
Natural gas purchase and distribution
Electric transmission services
Customers & end markets
Residential and commercial utility customers in Madison, Wisconsin area
Regional electricity transmission market participants
Market position

A regulated local utility with a stable monopoly position in its service area.

Demand drivers
Low cyclicality

Utility demand and revenues are relatively stable and regulated, with limited sensitivity to economic cycles.