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MGE EnergyMGEE +0.81%75 3-Year RORE % is 16.15 as of Jun. 2026. GuruFocus rates MGEE with a GF Score™ of 75/100 and a GF Value™ of $86.89 (Fairly Valued). The stock has 4 warning signs investors should review. Among 491 Utilities - Regulated companies, MGE Energy ranks better than 62.53% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
MGE Energy's 3-Year RORE % for the quarter that ended in Jun. 2026 was 16.15%.
The industry rank for MGE Energy's 3-Year RORE % or its related term are showing as below:
MGEE's 3-Year RORE % is ranked better than 62.53% of 491
companies
in the Utilities - Regulated industry
Industry Median: 6.36
vs MGEE: 16.15
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
MGE Energy 3-Year RORE % Related Terms
MGE Energy 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for MGE Energy's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, MGE Energy's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where MGE Energy's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 3-year before.
MGE Energy (MGEE) has a 3-Year RORE % of 16.15 as of Jun. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on MGE Energy and its competitors. According to the industry distribution chart, MGE Energy ranks #184 out of 491 companies in the Utilities - Regulated industry, placing it in the top 37.5%.
Is MGE Energy's 3-Year RORE % too high?
MGE Energy's current 3-Year RORE % is 16.15. The Utilities - Regulated industry median 3-Year RORE % is 6.36. MGE Energy's value of 16.15 is 153.9% above this industry median. Based on the distribution chart, MGE Energy ranks #184 out of 491 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, MGE Energy has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does MGE Energy's 3-Year RORE % compare to HE and NWE?
According to the Utilities - Regulated industry distribution chart, MGE Energy ranks #184 out of 491 companies for 3-Year RORE %. This puts MGE Energy in the upper half of its industry. The industry median 3-Year RORE % is 6.36. MGE Energy's value of 16.15 is 153.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Utilities - Regulated company?
The median 3-Year RORE % among Utilities - Regulated companies is 6.36, based on 491 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MGE Energy's current 3-Year RORE % of 16.15 is 153.9% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on MGE Energy and its competitors. For the Utilities - Regulated industry, the median 3-Year RORE % is 6.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MGE Energy's current 3-Year RORE % is 16.15. 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?
Based on GuruFocus' analysis, MGE Energy (MGEE) is currently considered Fairly Valued. The stock's GF Value™ is $86.89, compared to a current price of $79.32 — trading 8.7% below its estimated fair value. The current 3-Year RORE % is 16.15 and 153.9% above the Utilities - Regulated industry median of 6.36. MGE Energy's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For MGE Energy (MGEE), the current 3-Year RORE % is 16.15 as of Jun. 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 (MGEE) Overvalued in 2026?
Based on GuruFocus' analysis, MGE Energy stock appears to be undervalued.
The current stock price of $79.32 is trading 8.7% below its estimated GF Value™ of $86.89.
GuruFocus considers MGE Energy to be Fairly Valued.
Key valuation signals for MGEE:
3-Year RORE %: 16.15
GF Value™: $86.89 vs. price of $79.32 (8.7% below fair value)
Industry Position: 153.9% above the Utilities - Regulated median (#184 of 491)
No single metric tells the full story. See the MGEE 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.
75GF Score
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