MGE Energy, Inc. (MGEE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-27.7%

$54.46

vs $75.33 price

Levered DCF

$88.63

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

1.71

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	21.08×	28.22×	22.25×	22.93×	28.17×	26.93×	33.83×	24.67×
P/B	2.2×	2.77×	2.29×	2.35×	2.89×	2.56×	3.19×	2.55×
P/S	3.85×	5.03×	3.79×	3.56×	4.9×	4.63×	4.8×	3.71×
EV / EBITDA	12.45×	15.29×	12.25×	13.08×	17.06×	14.52×	16.24×	13.36×
Gross margin	41.5%	41.2%	39.0%	34.1%	35.2%	37.9%	35.6%	33.9%
Operating margin	22.9%	21.6%	21.2%	19.3%	19.3%	20.4%	19.5%	20.4%
Net margin	18.3%	17.8%	17.0%	15.5%	17.4%	17.2%	15.3%	15.0%
Current ratio	0.77×	1.81×	1.52×	1.08×	1.69×	1.1×	1.41×	1.99×
Debt / equity	0.72×	0.64×	0.68×	0.67×	0.62×	0.61×	0.66×	0.63×
Interest coverage	5.05×	4.44×	4.81×	5.17×	4.86×	4.68×	4.81×	5.82×
Dividend yield	2.4%	1.9%	2.3%	2.3%	1.8%	2.1%	1.8%	2.2%
Payout ratio	49.7%	52.7%	51.3%	51.8%	51.8%	56.0%	55.1%	54.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.4%	9.8%	10.3%	10.3%	10.3%	9.5%	10.2%	10.3%
Return on invested capital	5.0%	5.0%	4.6%	4.6%	5.0%	4.3%	4.6%	4.6%
Return on assets	4.3%	4.3%	4.4%	4.4%	4.5%	4.1%	4.2%	4.2%
Free cash flow yield	-2.8%	1.2%	0.6%	-0.8%	-0.5%	-1.2%	-1.2%	-2.8%
Earnings yield	4.7%	3.5%	4.5%	4.4%	3.6%	3.7%	3.2%	4.1%
Enterprise value	$3.8B	$4.2B	$3.4B	$3.3B	$3.6B	$3B	$3.3B	$2.5B
Net debt / EBITDA	3.05×	2.81×	2.78×	2.87×	2.96×	2.62×	2.67×	2.28×
Cash conversion cycle (days)	11	43	57	68	47	44	38	47