📊 MGEE Key Takeaways
Is MGEE a Good Investment? Thesis Analysis
MGE Energy exhibits severe accounting anomalies with negative revenue (-2.6% YoY) yet positive operating and net income, indicating potential data quality issues or non-standard business classification. The company's negative free cash flow (-$80M) despite $263M operating cash flow signals unsustainable capital expenditure ($343M), raising concerns about investment returns and financial sustainability.
MGE Energy shows the core traits of a financially sound regulated utility: steady net income, solid returns on equity and assets, and strong interest coverage despite a sizable capital program. However, free cash flow is negative because capital expenditures exceed operating cash flow, liquidity is thin, and the reported negative revenue/margin figures indicate data-quality distortions that reduce confidence in the headline profitability metrics.
Why Buy MGEE? Key Strengths
- Strong interest coverage ratio of 12.2x indicates ability to service debt obligations
- Positive operating cash flow of $263.2M demonstrates underlying business cash generation
- Moderate debt-to-equity ratio of 0.61x suggests acceptable leverage levels
- Net income remained stable while diluted EPS grew 11.7%, indicating decent per-share earnings progression
- ROE of 10.4% and ROA of 4.3% suggest respectable profitability for a capital-intensive utility business
- Interest coverage of 12.2x and debt-to-equity of 0.61x indicate manageable leverage and good debt-servicing capacity
MGEE Investment Risks to Consider
- Fundamental data contradiction: negative revenue growth cannot logically produce positive net income without extraordinary items, suggesting unreliable financial reporting or data integrity issues
- Negative free cash flow (-$80M) with capex exceeding operating cash flow indicates unsustainable business model or value-destructive capital allocation
- Critically low current ratio of 0.77x indicates insufficient liquid assets to cover short-term obligations, presenting immediate liquidity risk
- Negative free cash flow of $79.99M shows internal cash generation is not currently covering capital investment needs
- Current and quick ratios of 0.77x point to limited short-term liquidity flexibility
- Reported negative revenue and extreme margin figures suggest accounting or data-mapping issues, which make trend analysis less reliable
Key Metrics to Watch
- Resolution of revenue decline vs. income growth contradiction in next filing
- Free cash flow trend and sustainability of high capital expenditure program
- Current ratio improvement and working capital management
- Operating cash flow relative to capital expenditures
- Debt levels and current ratio/liquidity trend
MGEE Financial Metrics
💡 AI Analyst Insight
The 236.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
MGEE Profitability Ratios
MGEE vs Energy Sector
How MGE ENERGY INC compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MGEE Overvalued or Undervalued?
Based on fundamental analysis, MGE ENERGY INC has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MGEE Balance Sheet & Liquidity
MGEE 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: MGE ENERGY INC's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $3.25 reflects profitable operations.
MGEE Growth Metrics (YoY)
MGEE Capital Allocation
MGEE SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for MGE ENERGY INC (CIK: 0001161728)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MGEE
What is the AI rating for MGEE?
MGE ENERGY INC (MGEE) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MGEE's key strengths?
Claude: Strong interest coverage ratio of 12.2x indicates ability to service debt obligations. Positive operating cash flow of $263.2M demonstrates underlying business cash generation. ChatGPT: Net income remained stable while diluted EPS grew 11.7%, indicating decent per-share earnings progression. ROE of 10.4% and ROA of 4.3% suggest respectable profitability for a capital-intensive utility business.
What are the risks of investing in MGEE?
Claude: Fundamental data contradiction: negative revenue growth cannot logically produce positive net income without extraordinary items, suggesting unreliable financial reporting or data integrity issues. Negative free cash flow (-$80M) with capex exceeding operating cash flow indicates unsustainable business model or value-destructive capital allocation. ChatGPT: Negative free cash flow of $79.99M shows internal cash generation is not currently covering capital investment needs. Current and quick ratios of 0.77x point to limited short-term liquidity flexibility.
What is MGEE's revenue and growth?
MGE ENERGY INC reported revenue of $-33.8M.
Does MGEE pay dividends?
MGE ENERGY INC pays dividends, with $67.6M distributed to shareholders in the trailing twelve months.
Where can I find MGEE SEC filings?
Official SEC filings for MGE ENERGY INC (CIK: 0001161728) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MGEE's EPS?
MGE ENERGY INC has a diluted EPS of $3.72.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MGEE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, MGE ENERGY INC has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MGEE stock overvalued or undervalued?
Valuation metrics for MGEE: ROE of 10.4% (sector avg: 14%), net margin of -402.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy MGEE stock in 2026?
Our dual AI analysis gives MGE ENERGY INC a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MGEE's free cash flow?
MGE ENERGY INC's operating cash flow is $263.2M, with capital expenditures of $343.2M. FCF margin is 236.7%.
How does MGEE compare to other Energy stocks?
Vs Energy sector averages: Net margin -402.1% (avg: 12%), ROE 10.4% (avg: 14%), current ratio 0.77 (avg: 1.3).