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MGE EnergyFRA:MG1 73 ROE % is 14.71% as of Mar. 2026, which is 39% above its 10-year median of 10.56. GuruFocus rates FRA:MG1 with a GF Score™ of 73/100 and a GF Value™ of €76.09. The stock has 4 warning signs investors should review. Among 503 Utilities - Regulated companies, MGE Energy ranks better than 64.02% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. MGE Energy's annualized net income for the quarter that ended in Mar. 2026 was €167.7 Mil. MGE Energy's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €1,140.4 Mil. Therefore, MGE Energy's annualized ROE % for the quarter that ended in Mar. 2026 was 14.71%.
The historical rank and industry rank for MGE Energy's ROE % or its related term are showing as below:
FRA:MG1'
s ROE % Range Over the Past 10 Years
Min: 10.09 Med: 10.56 Max: 12.99
Current: 11.02
During the past 13 years, MGE Energy's highest ROE % was 12.99%. The lowest was 10.09%. And the median was 10.56%.
FRA:MG1's ROE % is ranked better than 64.02% of 503
companies
in the Utilities - Regulated industry
Industry Median: 8.68
vs FRA:MG1: 11.02
MGE Energy (FRA:MG1) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
MGE Energy ROE % Related Terms
MGE Energy ROE % Historical Data
* Premium members only.
The historical data trend for MGE Energy's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Electric subindustry, MGE Energy's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MGE Energy ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, MGE Energy's ROE % distribution charts can be found below:
* The bar in red indicates where MGE Energy's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
MGE Energy (FRA:MG1) has a ROE % of 14.71% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on MGE Energy and its competitors. This is 39% above median its historical median of 10.56. Over the past decade, MGE Energy's ROE % has ranged from 10.09 to 12.99. According to the industry distribution chart, MGE Energy ranks #181 out of 503 companies in the Utilities - Regulated industry, placing it in the top 36%.
Is MGE Energy's ROE % too high?
MGE Energy's current ROE % of 14.71% is 39% above median its 10-year median of 10.56. Over the past 10 years, this metric has ranged from a low of 10.09 to a high of 12.99. The Utilities - Regulated industry median ROE % is 8.68. MGE Energy's value of 14.71% is 69.5% above this industry median. Based on the distribution chart, MGE Energy ranks #181 out of 503 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, MGE Energy has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does MGE Energy's ROE % compare to HE and NWE?
According to the Utilities - Regulated industry distribution chart, MGE Energy ranks #181 out of 503 companies for ROE %. This puts MGE Energy in the upper half of its industry. The industry median ROE % is 8.68. MGE Energy's value of 14.71% is 69.5% above this benchmark. Historically, MGE Energy's own ROE % has ranged from 10.09 to 12.99 over the past decade. While the company's 10-year median is 10.56 vs. the industry median of 8.68, MGE Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.68, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGE Energy's current ROE % of 14.71% is 69.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on MGE Energy and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGE Energy's current ROE % is 14.71%, which is 39% above median its own 10-year median of 10.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MGE Energy stock overvalued right now?
MGE Energy (FRA:MG1) has a current ROE % of 14.71%. The stock's GF Value™ is €76.09, compared to a current price of €71.50 — trading 6% below its estimated fair value. The current ROE % is 14.71%, which is 39% above median its 10-year median of 10.56 and 69.5% above the Utilities - Regulated industry median of 8.68. MGE Energy's overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For MGE Energy (FRA:MG1), the current ROE % is 14.71% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MGE Energy (FRA:MG1) Overvalued in 2026?
Based on GuruFocus' analysis, MGE Energy stock appears to be undervalued.
The current stock price of €71.50 is trading 6% below its estimated GF Value™ of €76.09.
Key valuation signals for FRA:MG1:
ROE %: 14.71% (39% above median its 10-year median of 10.56)
GF Value™: €76.09 vs. price of €71.50 (6% below fair value)
Industry Position: 69.5% above the Utilities - Regulated median (#181 of 503)
No single metric tells the full story. See the FRA:MG1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MGE Energy provides electric service to 170,000 customers and natural gas service to 180,000 customers in Madison, Wisconsin, and surrounding areas. Nearly 90% of customers are residential. The company also owns a 3.6% stake in American Transmission Co. MGE owns interests in two coal power plants that earn guaranteed fixed rates of return, contributing about 20% of earnings.
73GF Score
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