MDU RESOURCES GROUP INC (MDU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MDU - US5526901096 - Common Stock
19.59 USD
-0.05 (-0.25%)
19.59 USD
0 (0%)
MDU gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. Both the profitability and financial health of MDU have multiple concerns. MDU does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
MDU had positive earnings in the past year.
MDU had a positive operating cash flow in the past year.
MDU had positive earnings in each of the past 5 years.
Each year in the past 5 years MDU had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MDU (2.36%) is worse than 71.43% of its industry peers.
Looking at the Return On Equity, with a value of 6.22%, MDU is doing worse than 85.71% of the companies in the same industry.
MDU has a worse Return On Invested Capital (3.36%) than 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MDU is below the industry average of 6.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 6.22% | ||
| ROIC | 3.36% |
ROA(3y)4.37%
ROA(5y)4.44%
ROE(3y)11.66%
ROE(5y)11.76%
ROIC(3y)3.8%
ROIC(5y)4.57%
1.3 Margins
Looking at the Profit Margin, with a value of 9.02%, MDU is doing worse than 64.29% of the companies in the same industry.
In the last couple of years the Profit Margin of MDU has grown nicely.
MDU's Operating Margin of 14.79% is on the low side compared to the rest of the industry. MDU is outperformed by 71.43% of its industry peers.
MDU's Operating Margin has improved in the last couple of years.
MDU has a Gross Margin (62.94%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MDU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.79% | ||
| PM (TTM) | 9.02% | ||
| GM | 62.94% |
OM growth 3Y17.13%
OM growth 5Y10.88%
PM growth 3Y33.93%
PM growth 5Y20.53%
GM growth 3Y-10.74%
GM growth 5Y-6.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MDU is destroying value.
Compared to 1 year ago, MDU has about the same amount of shares outstanding.
Compared to 5 years ago, MDU has more shares outstanding
The debt/assets ratio for MDU is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that MDU is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.11, MDU is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.80 indicates that MDU is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.80, MDU belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.11 |
ROIC/WACC0.48
WACC6.96%
2.3 Liquidity
A Current Ratio of 0.75 indicates that MDU may have some problems paying its short term obligations.
MDU has a better Current ratio (0.75) than 71.43% of its industry peers.
A Quick Ratio of 0.69 indicates that MDU may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.69, MDU belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
MDU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.74%.
The Earnings Per Share has been decreasing by -3.17% on average over the past years.
MDU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -57.80%.
Measured over the past years, MDU shows a very negative growth in Revenue. The Revenue has been decreasing by -19.92% on average per year.
EPS 1Y (TTM)-51.74%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-71.87%
Revenue 1Y (TTM)-57.8%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-70%
3.2 Future
MDU is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.31% yearly.
Based on estimates for the next years, MDU will show a very negative growth in Revenue. The Revenue will decrease by -10.80% on average per year.
EPS Next Y-33.44%
EPS Next 2Y-15.01%
EPS Next 3Y-7.72%
EPS Next 5Y-2.31%
Revenue Next Year-53.7%
Revenue Next 2Y-30.92%
Revenue Next 3Y-20.91%
Revenue Next 5Y-10.8%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.60, the valuation of MDU can be described as rather expensive.
MDU's Price/Earnings ratio is rather expensive when compared to the industry. MDU is more expensive than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. MDU is around the same levels.
The Price/Forward Earnings ratio is 18.97, which indicates a rather expensive current valuation of MDU.
64.29% of the companies in the same industry are cheaper than MDU, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MDU to the average of the S&P500 Index (23.78), we can say MDU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 18.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MDU is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.53 |
4.3 Compensation for Growth
MDU's earnings are expected to decrease with -7.72% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.01%
EPS Next 3Y-7.72%
5. Dividend
5.1 Amount
MDU has a Yearly Dividend Yield of 2.88%.
MDU's Dividend Yield is slightly below the industry average, which is at 3.83.
MDU's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
The dividend of MDU decreases each year by -8.99%.
MDU has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-8.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
62.43% of the earnings are spent on dividend by MDU. This is not a sustainable payout ratio.
MDU's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP62.43%
EPS Next 2Y-15.01%
EPS Next 3Y-7.72%
19.59
-0.05 (-0.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners84.66%
Inst Owner Change0.81%
Ins Owners0.46%
Ins Owner Change1.55%
Market Cap4.00B
Revenue(TTM)1.88B
Net Income(TTM)169.26M
Analysts84
Price Target21.01 (7.25%)
Short Float %5.63%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend0.51
Dividend Growth(5Y)-8.99%
DP62.43%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.52%
Min EPS beat(2)-43.04%
Max EPS beat(2)-18%
EPS beat(4)1
Avg EPS beat(4)-18.22%
Min EPS beat(4)-43.04%
Max EPS beat(4)8.7%
EPS beat(8)5
Avg EPS beat(8)2.79%
EPS beat(12)9
Avg EPS beat(12)14.52%
EPS beat(16)9
Avg EPS beat(16)5.47%
Revenue beat(2)2
Avg Revenue beat(2)8.53%
Min Revenue beat(2)2.29%
Max Revenue beat(2)14.77%
Revenue beat(4)3
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-32.93%
Max Revenue beat(4)14.77%
Revenue beat(8)4
Avg Revenue beat(8)-3.76%
Revenue beat(12)6
Avg Revenue beat(12)-1.09%
Revenue beat(16)7
Avg Revenue beat(16)-3.29%
PT rev (1m)0%
PT rev (3m)5.64%
EPS NQ rev (1m)-4.25%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.29%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-13.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.6 | ||
| Fwd PE | 18.97 | ||
| P/S | 2.13 | ||
| P/FCF | N/A | ||
| P/OCF | 8.83 | ||
| P/B | 1.47 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 13.53 |
EPS(TTM)0.83
EY4.24%
EPS(NY)1.03
Fwd EY5.27%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)2.22
OCFY11.32%
SpS9.18
BVpS13.32
TBVpS11.63
PEG (NY)N/A
PEG (5Y)N/A
Graham Number15.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 6.22% | ||
| ROCE | 4.26% | ||
| ROIC | 3.36% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 3.6% | ||
| OM | 14.79% | ||
| PM (TTM) | 9.02% | ||
| GM | 62.94% | ||
| FCFM | N/A |
ROA(3y)4.37%
ROA(5y)4.44%
ROE(3y)11.66%
ROE(5y)11.76%
ROIC(3y)3.8%
ROIC(5y)4.57%
ROICexc(3y)3.84%
ROICexc(5y)4.61%
ROICexgc(3y)4.07%
ROICexgc(5y)5.01%
ROCE(3y)4.84%
ROCE(5y)5.81%
ROICexgc growth 3Y-16.45%
ROICexgc growth 5Y-10.89%
ROICexc growth 3Y-15.03%
ROICexc growth 5Y-9.95%
OM growth 3Y17.13%
OM growth 5Y10.88%
PM growth 3Y33.93%
PM growth 5Y20.53%
GM growth 3Y-10.74%
GM growth 5Y-6.65%
F-Score3
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.71 | ||
| Cap/Depr | 253.75% | ||
| Cap/Sales | 25.35% | ||
| Interest Coverage | 2.72 | ||
| Cash Conversion | 97.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.11 |
F-Score3
WACC6.96%
ROIC/WACC0.48
Cap/Depr(3y)234.98%
Cap/Depr(5y)224.21%
Cap/Sales(3y)22.66%
Cap/Sales(5y)17.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-51.74%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-71.87%
EPS Next Y-33.44%
EPS Next 2Y-15.01%
EPS Next 3Y-7.72%
EPS Next 5Y-2.31%
Revenue 1Y (TTM)-57.8%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-70%
Revenue Next Year-53.7%
Revenue Next 2Y-30.92%
Revenue Next 3Y-20.91%
Revenue Next 5Y-10.8%
EBIT growth 1Y-39.31%
EBIT growth 3Y-20.77%
EBIT growth 5Y-11.2%
EBIT Next Year30.38%
EBIT Next 3Y12.93%
EBIT Next 5Y10.38%
FCF growth 1Y86.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.3%
OCF growth 3Y0.44%
OCF growth 5Y-1.52%
MDU RESOURCES GROUP INC / MDU FAQ
What is the ChartMill fundamental rating of MDU RESOURCES GROUP INC (MDU) stock?
ChartMill assigns a fundamental rating of 2 / 10 to MDU.
What is the valuation status of MDU RESOURCES GROUP INC (MDU) stock?
ChartMill assigns a valuation rating of 1 / 10 to MDU RESOURCES GROUP INC (MDU). This can be considered as Overvalued.
Can you provide the profitability details for MDU RESOURCES GROUP INC?
MDU RESOURCES GROUP INC (MDU) has a profitability rating of 3 / 10.
How financially healthy is MDU RESOURCES GROUP INC?
The financial health rating of MDU RESOURCES GROUP INC (MDU) is 3 / 10.
Is the dividend of MDU RESOURCES GROUP INC sustainable?
The dividend rating of MDU RESOURCES GROUP INC (MDU) is 3 / 10 and the dividend payout ratio is 62.43%.