📊 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.
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
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
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
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 an AI rating of SELL with 75% 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.
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.
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 75% 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).