Descripción de la empresa
MGE Energy, Inc. operates as a public utility holding company within the United States, executing business activities through specific subsidiaries that manage regulated electric and gas utility operations, nonregulated energy initiatives, transmission investments, and other segments. The company functions within the Utilities sector, specifically under the Regulated Electric industry classification, which implies a business model subject to government regulation regarding rates and service obligations. This entity employs a workforce of 726 individuals and holds a total market capitalization of $2.90B, while generating annual revenues of $726.65M in the trailing twelve months. These financial figures indicate a mid-sized utility player with a substantial revenue base that supports its operations across regulated and nonregulated segments, establishing a stable yet moderate position within the broader energy infrastructure landscape.
Salud financiera
The company reported revenue of $726.65M for the trailing twelve months, with a corresponding net income of $135.89M and EBITDA of $286.78M. The significant disparity between the gross revenue figure and the final net income reveals a cost structure that includes substantial operating expenses, taxes, and interest costs before arriving at the bottom line profit. While the EBITDA of $286.78M reflects strong operational cash generation potential, the free cash flow stands at -$89,253,504, indicating that capital expenditures or other cash outflows currently exceed the cash generated from operations, which impacts immediate financial flexibility. The gross margin is established at 42.6%, suggesting a favorable pricing power or efficient cost of goods sold typical of regulated utilities; the operating margin of 20.6% further demonstrates effective control over selling, general, and administrative expenses; and the profit margin of 18.7% confirms the company's ability to convert revenue into actual earnings after all obligations. On the balance sheet, the company holds cash totaling $5.67M against a total debt load of $935.73M, resulting in a debt-to-equity ratio of 71.76, which characterizes a highly leveraged balance sheet common in capital-intensive utility sectors. The current ratio is recorded at 0.77, a metric that indicates the company possesses less current assets than current liabilities, signaling potential constraints in meeting short-term liquidity obligations without accessing external financing. Additionally, the return on equity is 10.7% and the return on assets is 3.8%, metrics that reveal management's effectiveness in generating returns relative to shareholder equity and total asset base, respectively, with the lower ROA reflecting the heavy asset intensity of the utility business.
Evaluación de valoración
The trailing twelve-month P/E ratio is 21.20, while the forward P/E ratio is 18.60, implying that the market anticipates earnings growth that will allow the company to trade at a lower multiple in the coming year relative to historical performance. The price-to-book ratio stands at 2.21, indicating that the stock trades at a premium of over two times its net asset value, which suggests the market values the company's intangible assets or stable cash flows higher than the accounting book value. Alternative valuation metrics include a price-to-sales ratio of 3.99 and an EV/EBITDA of 13.30, figures that provide context on the company's valuation relative to its revenue generation and earnings power before interest, taxes, depreciation, and amortization. The stock's trading range over the last year spans from a 52-week low of $72.17 to a 52-week high of $94.00, placing the current valuation somewhere within this historical band depending on the real-time market price not explicitly listed in the provided facts. The beta value is 0.79, which indicates that the stock's price volatility is lower than the broader market, making it a less sensitive instrument to general market swings compared to the average equity.
Growth & Income
Revenue growth for the year-over-year period is 11.7%, while earnings growth is recorded at 5.1%, indicating that earnings are expanding at a slower pace than revenue, which often points to margin compression or one-time costs affecting the net income line. As a dividend payer, the company offers a dividend yield of 2.4% with a payout ratio of 49.7%, a level that appears sustainable given the positive net income and the fact that the payout does not exceed 50% of earnings. The gap between revenue and earnings growth suggests that while top-line expansion is robust, the company must carefully manage costs to translate that top-line activity into proportional bottom-line results. The overall growth and income profile presents a utility company with moderate earnings expansion and a consistent, sustainable dividend stream that provides income to shareholders while maintaining a conservative payout discipline.