QUOTE AND NEWS
SeekingAlpha  Feb 24  Comment 
SeekingAlpha  Nov 3  Comment 
Benzinga  Nov 1  Comment 
The list of below stocks is notable as the shares have rallied for three days in a row on increasing volume and with no news spanning the trading days from October 27 to October 31: Chuy's Holdings Inc (NASDAQ: CHUY): Chuy's is expected to...
MarketWatch  Aug 19  Comment 
MGE Energy Inc. said Friday that it raised its quarterly dividend to 30.75 cents from 29.5 cents, a 4.2% increase. The new dividend is payable Sept. 15 to shareholders of record on Sept. 1. Shares of the public utility fell 1.4% in in afternoon...
SeekingAlpha  Aug 4  Comment 
Forbes  May 25  Comment 
Looking at the universe of stocks we cover at Dividend Channel, on 5/27/16, MGE Energy Inc (NASD: MGEE), Universal Health Services, Inc. (NYSE: UHS), and Nelnet Inc (NYSE: NNI) will all trade ex-dividend for their respective upcoming dividends....




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

MGE Energy (NASDAQ: MGEE) is a utilities company that distributes electricity, gas, and other non-regulated energy operations to the Wisconsin Area. The company has a service area covering a 316 square-mile area of Dane County, Wisconsin for its electric generation. Besides relying on traditional inputs such as coal, the company owns 30 MW consisting of 18 turbines in a wind-powered electric generating facility in Worth County, Iowa and 11 MW consisting of 17 turbines in a wind-powered electric generating facility in Kewaunee County, Wisconsin.[1] As both gas and electricity share similar inputs, MGEE is highly dependent upon pricing schemes of certain key commodities.

Business Growth

MGE Energy operates in five segments:

  • Electricity Utility Operations generates, purchases and distributes electricity through Madison Gas and Electric Company (MGE).
  • Gas Utility Operations purchase and distribute natural gas through MGE.
  • Nonregulated Energy Operations constructs, owns and leases new electric generating capacity.
  • Transmission Investments provides electric transmission services.
  • All Other invests in companies and properties that relate to the financing and construction services that feed to all of the above subsidiaries.

Because over 50% of MGEE's revenues is derived from the commercial sphere, the securing of long-term contracts is critical for MGEE's growth.[2] After suffering from declining revenues of roughly 10.4% decline, and posting a -0.2% revenue growth the past FY2010, MGEE is back in positive sales growth in the last 12 months.[3] As the company continues to move toward to move toward profitability, the company plans to contribute toward higher dividend growth.[4]

Trends and Forces

Heavily Dependent Upon the Commercial Sector, MGEE's Profitability is Impacted by Discretionary Spending

As a large part of MGEE's business is centered in electricity generation for the commercial sphere, with both residential and commercial adding up to over 80% of revenues, customer growth and unemployment rates influence the amount of demand required tor those regions. A lower level of economic activity that changes discretionary spending thereby increases conservation efforts by customers to go out shopping and results in a decline in energy consumption. A decline in businesses from commercial spaces thereby puts pressure on MGEE's customers to pay on a timely basis, and ensuing bankruptcies make it difficult to collect.

Gas and Electricity Segments Smooth MGEE's Income

Inland regions such as Iowa and Wisconsin contain more extreme temperatures than coastal regions. As such, air conditioning is heavily used in the summer time (requiring electricity), and heating is heavily used in the winter (requiring natural gas). Because MGEE is heavily invested in both natural gas and electricity as a utilities company, the combination of two operating segments tend to smooth out earnings better than companies that focus solely on one or the other. Regardless, both sources are heavily dependent upon several key inputs such as Natural Gas, Coal and Oil. The price at which MGEE may acquire these inputs determine how much the company may charge to its customers. For example, coal remains to satisfy at roughly 50% of customers' electric demand with internal generation and purchased power.[5]

Competition

Energy saving appliances and general implementation of EE Standards will reduce energy consumption for MGEE's retail customers. The ability for customers to install alternative energy technologies and even conventional generation units reduce their reliance on MGEE's services. The suppliers of these technologies include:


  • First Solar (FSLR) is engaged in the manufacture and sale of solar modules with an advanced thin film semiconductor technology, and it designs, constructs and sells photovoltaic (PV) solar power systems.[6]
  • SunPower (SPWRA) is a vertically integrated solar products and services company that designs, manufactures and delivers solar electric systems worldwide for residential, commercial and utility-scale power plant customers.[7]




References

  1. FY2010 MGEE Form 10-K, Pg 10
  2. MGE Energy Q1 net income increases
  3. MGE Energy Issues First-Quarter Financial Update
  4. MGE Energy Issues June 2011 'Interim Report'
  5. FY2010 MGEE Form 10-K, Pg 8
  6. Form 10-K, FSLR Business Description
  7. Form 10-K SPWRA Business Description
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki