The company's utility business should continue to benefit from favorable demographics within their service area. Population growth ought to boost demand for power in the Madison area. Limited exposure to economically sensitive industrial customers means greater stability.
The stock carries Value Line highest rank for the year ahead relative price performance. MGE Energy also earns favorable marks for Safety, Financial Strength, Price Stability, and Earnings Predictability. Volatility is below average here, too. In addition, Value Line anticipate solid growth win revenues and share earnings for the company over the pull to late decade. But this appears to be partly reflected in the recent quotation, as the shares are trading within Value Lines target price range. The price-to-earnings multiple is well above the historical average, and long term total return potential is nothing to write home about.
Patient investors should probably remain on the side lines for now.
This come from Value Line page for MGE. It look like they are telling us investors that this company is over valued at this time. Its average PE for the past ten year is 15.0. It now carry's a PE of almost 25. I think I will sit on the side lines for now.
I think this market over valued at this point. This is because of the Feds not willing to raise interest rate. This makes the stock market the only game in town. Just my opinion.