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Mge Energy Inc

MGEE

Electric, Gas & Sanitary Services

Mkt Cap

$2.365B

PE

19.93

Debt

$712M

Cash

$11.27M

EV

$3.066B

FCF

$11.57M

Market Cap

$2.365B

P/E Ratio

19.93

Debt

$712M

Cash

$11.27M

EV

$3.066B

FCF

$11.57M
Charts data: {"Earnings":[{"time":"2014-12-30","value":80319000},{"time":"2015-12-30","value":71343000},{"time":"2016-12-30","value":75560000},{"time":"2017-12-30","value":97606000},{"time":"2018-12-30","value":84219000},{"time":"2019-12-30","value":86874000},{"time":"2020-12-30","value":92418000},{"time":"2021-12-30","value":105761000},{"time":"2022-12-30","value":110952000}],"Sales":[{"time":"2014-12-30","value":619852000},{"time":"2015-12-30","value":564028000},{"time":"2016-12-30","value":544745000},{"time":"2017-12-30","value":563099000},{"time":"2018-12-30","value":559768000},{"time":"2019-12-30","value":568855000},{"time":"2020-12-30","value":538633000},{"time":"2021-12-30","value":606584000},{"time":"2022-12-30","value":714519000}],"Net Margins":[{"time":"2014-12-30","value":0.12957770564586385},{"time":"2015-12-30","value":0.12648840128504257},{"time":"2016-12-30","value":0.13870710148785212},{"time":"2017-12-30","value":0.17333719292699862},{"time":"2018-12-30","value":0.15045340212373698},{"time":"2019-12-30","value":0.15271730054231747},{"time":"2020-12-30","value":0.17157879298149203},{"time":"2021-12-30","value":0.1743550769555412},{"time":"2022-12-30","value":0.1552820848710811}],"Assets":[{"time":"2014-12-30","value":1697666000},{"time":"2015-12-30","value":1730673000},{"time":"2016-12-30","value":1801060000},{"time":"2017-12-30","value":1855182000},{"time":"2018-12-30","value":1988618000},{"time":"2019-12-30","value":2081664000},{"time":"2020-12-30","value":2253651000},{"time":"2021-12-30","value":2371906000},{"time":"2022-12-30","value":2517600000}],"Stockholders Equity":[{"time":"2014-12-30","value":659401000},{"time":"2015-12-30","value":690458000},{"time":"2016-12-30","value":724088000},{"time":"2017-12-30","value":778187000},{"time":"2018-12-30","value":816644000},{"time":"2019-12-30","value":855676000},{"time":"2020-12-30","value":976000000},{"time":"2021-12-30","value":1027468000},{"time":"2022-12-30","value":1081674000}],"ROE":[{"time":"2014-12-30","value":0.12180600272065102},{"time":"2015-12-30","value":0.10332706696135029},{"time":"2016-12-30","value":0.10435195722066931},{"time":"2017-12-30","value":0.1254274358219811},{"time":"2018-12-30","value":0.10312816845528774},{"time":"2019-12-30","value":0.10152674610483407},{"time":"2020-12-30","value":0.09469057377049181},{"time":"2021-12-30","value":0.10293361934386278},{"time":"2022-12-30","value":0.10257434310152597}],"ROA":[{"time":"2014-12-30","value":0.0813458006462991},{"time":"2015-12-30","value":0.0717957696225688},{"time":"2016-12-30","value":0.07119585133199338},{"time":"2017-12-30","value":0.06939265258071715},{"time":"2018-12-30","value":0.057430336042417394},{"time":"2019-12-30","value":0.05327949179118244},{"time":"2020-12-30","value":0.04880835586344114},{"time":"2021-12-30","value":0.049451369489347384},{"time":"2022-12-30","value":0.0547120273276136}]}

MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in Wisconsin. 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 and natural gas in Wisconsin and Iowa; and plans, constructs, operates, maintains, and expands transmission facilities to provide transmission services. It also generates electricity from coal-fired, gas-fired, and renewable energy sources. MGE Energy, Inc. founded in 2001 and is headquartered in Madison, Wisconsin.

Sector

    Growth

    %

    %

    Discount

    %

    %

    Multiple

    g\r+10%+11%+12%+13%+14%
    0%109887
    +1%1110988
    +2%13111098
    +3%141311109
    +4%1714121110
    Years012345678910TV
    FCF$11.57M$9.483M$7.771M$6.368M$5.218M$4.276M$3.504M$2.872M$2.353M$1.928M$1.58M$15.8M
    DCF$8.246M$5.876M$4.187M$2.984M$2.126M$1.515M$1.08M$769.3K$548.2K$390.6K$3.906M
    Value$31.63M

    In the chart Earnings are multiplied by this value.

    Earnings Growth 5.9%
    Earnings Stability 81%


    Competitiveness and MOAT

    High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

    Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
    Net Margin13%13%14%17%15%15%17%17%16%17%
    ROA8.1%7.2%7.1%6.9%5.7%5.3%4.9%4.9%5.5%5.8%
    ROE12%10%10%13%10%10%9.5%10%10%10%

    What is the average Net Margin?

    The average Net Margin over the past 5 years is +16.3%.

    What is the trend of Net Margin?

    The trend of Net Margin over the past 5 years is 0%.

    What is the average Return on Assets (ROA)?

    The average ROA over the past 5 years is +5.55%.

    What is the trend of Return on Assets (ROA)?

    The trend of ROA over the past 5 years is -0.29%.

    What is the average Return on Equity (ROE)?

    The average ROE over the past 5 years is +10.5%.

    What is the trend of Return on Equity (ROE)?

    The trend of ROE over the past 5 years is -0.35%.


    Safety & Stabiliy

    Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

    Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
    Debt FCF-5.786.1918.16-8.56-16.19-18.63-39.62-30.7961.53
    Debt Equity0.620.580.550.580.620.640.590.600.610.63
    MIN
    Graham Stability---100%100%100%100%100%100%100%

    What is the Debt/FCF?

    The Debt/FCF trailing twelve month is 61.53.

    What is the trend of Debt/FCF?

    The trend of Debt/FCF over the past 5 years is -9.72.

    What is the Graham’s Stability?

    Graham’s Stability measure stands at 1.00.


    Growth

    Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

    Years12-201512-201712-201912-2021Trend
    Revenue3.4%4.9%7.9%18%2.9%
    Net Income6.5%2.6%8.5%4.9%1.2%
    Stockholders Equity6.6%6.8%8.1%5.3%0.3%
    FCF-----76%

    What is the 5 year Revenue CAGR?

    The Revenue CAGR over the past 5 years is +4.88%.

    What is the trend of Revenue growth?

    The trend of Revenue growth rate over the past 5 years is +2.9%.

    What is the 5 year Earnings CAGR?

    The Earnings CAGR over the past 5 years is +2.6%.

    What is the trend of Earnings growth?

    The trend of Earnings growth rate over the past 5 years is +1.23%.

    What is the 5 year Equity CAGR?

    The Equity CAGR over the past 5 years is +6.81%.

    What is the trend of Equity growth?

    The trend of Equity growth rate over the past 5 years is +0.3%.

    What is the 5 year FCF CAGR?

    The FCF CAGR over the past 5 years is -.

    What is the trend of FCF growth?

    The trend of FCF growth rate over the past 5 years is -76.35%.