MGE Energy (MGE Energy) Gross Margin % : 33.36% (As of Dec. 2023)

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What is MGE Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. MGE Energy's Gross Profit for the three months ended in Dec. 2023 was $54.9 Mil. MGE Energy's Revenue for the three months ended in Dec. 2023 was $164.7 Mil. Therefore, MGE Energy's Gross Margin % for the quarter that ended in Dec. 2023 was 33.36%.

The historical rank and industry rank for MGE Energy's Gross Margin % or its related term are showing as below:

MGEE' s Gross Margin % Range Over the Past 10 Years
Min: 32.01 Med: 34.8 Max: 38.97
Current: 38.97

During the past 13 years, the highest Gross Margin % of MGE Energy was 38.97%. The lowest was 32.01%. And the median was 34.80%.

MGEE's Gross Margin % is ranked better than
68.79% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.6 vs MGEE: 38.97

MGE Energy had a gross margin of 33.36% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for MGE Energy was 1.40% per year.

MGE Energy Gross Margin % Historical Data

The historical data trend for MGE Energy's Gross Margin % 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.

* Premium members only.

MGE Energy Gross Margin % Chart

MGE Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

35.57

37.86

35.21

34.14

38.97

MGE Energy Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															28.84	32.34	46.77	46.50	33.36

Competitive Comparison of MGE Energy's Gross Margin %

For the Utilities - Regulated Electric subindustry, MGE Energy's Gross Margin %, along with its competitors' market caps and Gross Margin % 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's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, MGE Energy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where MGE Energy's Gross Margin % falls into.

MGE Energy Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

MGE Energy's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	269	/	690.431
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(690.431 - 421.389)	/	690.431
	=	38.97 %

MGE Energy's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	54.9	/	164.652
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(164.652 - 109.719)	/	164.652
	=	33.36 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

MGE Energy (NAS:MGEE) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

MGE Energy had a gross margin of 33.36% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

MGE Energy Gross Margin % Related Terms

Thank you for viewing the detailed overview of MGE Energy's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

MGE Energy (MGE Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » MGE Energy Inc (NAS:MGEE) » Definitions » Gross Margin %

Comparable Companies

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Traded in Other Exchanges

N/A

Address

133 South Blair Street, Madison, WI, USA, 53788

Website

https://www.mgeenergy.com

MGE Energy Inc is a U.S. public utilities holding company based in Wisconsin. The firm generates, purchases, and distributes electricity and natural gas, and also provides transmission services, the company generates electricity from coal and purchased power, but also from natural gas, fuel oil, and renewable sources. MGE operates through five segments, which include Regulated electric utility operations, Regulated gas utility operations, Non-regulated energy operations, Transmission investments, and All other segment which includes investing in companies and property and financing the regulated operations. The majority of electric retail revenue is derived from commercial consumers whereas the majority of natural gas revenue is derived from residential consumers.

Executives

Scott Robert Smith	officer: VP Bus. Regulatory Strategy	623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
James G Berbee	director	133 S BLAIR STREET, PO BOX 1231, MADISON WI 53701-1231
James Jerome Lorenz	officer: VP Business Operations	623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Noble Lynnwood Wray	director	623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Lynn K Hobbie	officer: Exec VP Marketing & Corp Comm	133 SOUTH BLAIR ST, P.O. BOX 1231, MADISON WI 53701-1231
Gary J Wolter	director	133 SOUTH BLAIR ST., P.O. BOX 1231, MADISON WI 53701-1231
Cari Anne Renlund	officer: VP and General Counsel	133 S BLAIR STREET, PO BOX 1231, MADISON WI 53701-1231
James L Possin	director	133 SOUTH BLAIR STREET, P.O. BOX 1231, MADISON WI 53701-1231
Tamara Jean Johnson	officer: VP Accounting and Controller	623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Jared Joseph Bushek	officer: VP Finance, CIO & Treasurer	623 RAILROAD STREET, PO BOX 1231, MADISON WI 53701-1231
Marcia M Anderson	director	133 S BLAIR STREET, PO BOX 1231, MADISON WI 53701-1231
Jeffrey M Keebler	officer: Sr. VP-Energy Supply & Plan	133 S BLAIR ST, PO BOX 1231, MADISON WI 53701-1231
Regina M Millner	director	133 SOUTH BLAIR ST, P.O. BOX 1231, MADISON WI 53701-1231
Donald D Peterson	officer: VP - Energy Technology	133 S. BLAIR ST, PO BOX 1231, MADISON WI 53701-1231
Thomas R Stolper	director	133 SOUTH BLAIR STREET, POST OFFICE BOX 1231, MADISON WI 53701-1231