MGE Energy Inc (MGEE)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I see MGE Energy as a small, regulated utility holding company - 726 employees, electric and gas operations, transmission investments - whose franchise is protected by its service territory, though regulated returns cap upside. The filed numbers show a steady operator: in fiscal 2025, the year ended 2025-12-31, net income was $135.9M and diluted EPS $3.72, up from $120.6M and $3.33 in fiscal 2024, the year ended 2024-12-31. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was $48.5M and diluted EPS $1.32, versus $41.6M and $1.14 in fiscal Q1 2025. That is respectable improvement, and FairStock categorizes it as a STALWART - steady growth, with profits up about 8.0% a year over five years. At the 2026-10-13 close of $71.21, FairStock calculates a P/E of 17.50, P/B of 1.87, dividend yield 2.74%, and PEG 0.68. Return on equity is 11.04%, but ROCE is only 3.72%, and debt-to-equity is 0.65. The balance sheet is leveraged, typical for a utility, but Altman Z-Score 1.31 and Piotroski 5/9 suggest limited margin for error. Free cash flow is negative $164.3M, a -6.3% FCF yield, because capital spending is heavy. The Graham Number is $59.09, so the price carries a -20.51% margin of safety - meaning it is not statistically cheap. MGE is a decent, boring utility with a regulated moat and modest growth, but it is not a bargain. I would want a lower price or clearer free cash flow before calling it compelling.

In plain English: MGE Energy is a regulated electric and gas utility serving customers in the U.S. The business looks steady and profitable, with net income rising in recent filed periods, but it spends heavily on its system and does not currently generate spare cash after outlays. At the recent price, the shares look fair to slightly expensive compared with earnings and accounting value, and the dividend is modest.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer