MDU RESOURCES GROUP INC (MDU) Stock Fundamental Analysis
NYSE:MDU - US5526901096 - Common Stock
16.18 USD
-0.06 (-0.37%)
16.18 USD
0 (0%)
Overall MDU gets a fundamental rating of 3 out of 10. We evaluated MDU against 14 industry peers in the Gas Utilities industry. MDU has a medium profitability rating, but doesn't score so well on its financial health evaluation. MDU is valued expensive and it does not seem to be growing.
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.
In the past 5 years MDU has always been profitable.
Each year in the past 5 years MDU had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.10%, MDU is in line with its industry, outperforming 57.14% of the companies in the same industry.
MDU has a Return On Equity (7.89%) which is comparable to the rest of the industry.
MDU has a Return On Invested Capital of 4.09%. This is in the lower half of the industry: MDU underperforms 78.57% of its industry peers.
MDU had an Average Return On Invested Capital over the past 3 years of 3.80%. This is below the industry average of 6.32%.
The 3 year average ROIC (3.80%) for MDU is below the current ROIC(4.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 7.89% | ||
| ROIC | 4.09% |
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 8.25%, MDU is in line with its industry, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Profit Margin of MDU has grown nicely.
MDU has a Operating Margin of 12.58%. This is in the lower half of the industry: MDU underperforms 78.57% of its industry peers.
MDU's Operating Margin has improved in the last couple of years.
MDU has a better Gross Margin (69.69%) than 71.43% of its industry peers.
In the last couple of years the Gross Margin of MDU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.58% | ||
| PM (TTM) | 8.25% | ||
| GM | 69.69% |
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
MDU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MDU has about the same amount of shares outstanding.
MDU has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MDU is higher compared to a year ago.
2.2 Solvency
MDU has an Altman-Z score of 1.19. This is a bad value and indicates that MDU is not financially healthy and even has some risk of bankruptcy.
MDU's Altman-Z score of 1.19 is in line compared to the rest of the industry. MDU outperforms 57.14% of its industry peers.
MDU has a debt to FCF ratio of 26.52. This is a negative value and a sign of low solvency as MDU would need 26.52 years to pay back of all of its debts.
MDU has a Debt to FCF ratio (26.52) which is in line with its industry peers.
MDU has a Debt/Equity ratio of 0.75. This is a neutral value indicating MDU is somewhat dependend on debt financing.
MDU has a better Debt to Equity ratio (0.75) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 26.52 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.61
WACC6.71%
2.3 Liquidity
MDU has a Current Ratio of 0.74. This is a bad value and indicates that MDU is not financially healthy enough and could expect problems in meeting its short term obligations.
MDU has a better Current ratio (0.74) than 71.43% of its industry peers.
MDU has a Quick Ratio of 0.74. This is a bad value and indicates that MDU is not financially healthy enough and could expect problems in meeting its short term obligations.
MDU has a Quick ratio of 0.71. This is amongst the best in the industry. MDU outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
MDU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.45%.
The Earnings Per Share has been decreasing by -3.17% on average over the past years.
The Revenue for MDU has decreased by -40.60% in the past year. This is quite bad
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)-40.45%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-78.12%
Revenue 1Y (TTM)-40.6%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-66.47%
3.2 Future
The Earnings Per Share is expected to decrease by -3.46% on average over the next years.
Based on estimates for the next years, MDU will show a very negative growth in Revenue. The Revenue will decrease by -14.55% on average per year.
EPS Next Y-31.89%
EPS Next 2Y-14.24%
EPS Next 3Y-7.51%
EPS Next 5Y-3.46%
Revenue Next Year-53.95%
Revenue Next 2Y-31.61%
Revenue Next 3Y-23.09%
Revenue Next 5Y-14.55%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.26, the valuation of MDU can be described as correct.
MDU's Price/Earnings ratio is in line with the industry average.
MDU is valuated rather cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.39 indicates a correct valuation of MDU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDU is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, MDU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 15.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDU indicates a slightly more expensive valuation: MDU is more expensive than 64.29% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MDU indicates a somewhat cheap valuation: MDU is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.18 | ||
| EV/EBITDA | 10.44 |
4.3 Compensation for Growth
A cheap valuation may be justified as MDU's earnings are expected to decrease with -7.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.24%
EPS Next 3Y-7.51%
5. Dividend
5.1 Amount
MDU has a Yearly Dividend Yield of 3.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.96, MDU is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.41, MDU pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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
48.53% of the earnings are spent on dividend by MDU. This is a bit on the high side, but may be sustainable.
The Dividend Rate of MDU has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP48.53%
EPS Next 2Y-14.24%
EPS Next 3Y-7.51%
16.18
-0.06 (-0.37%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.69%
Inst Owner Change-3.04%
Ins Owners0.42%
Ins Owner Change0.22%
Market Cap3.31B
Analysts82.22
Price Target19.89 (22.93%)
Short Float %2.99%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend0.51
Dividend Growth(5Y)-8.99%
DP48.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-17.17%
Min EPS beat(2)-43.04%
Max EPS beat(2)8.7%
EPS beat(4)2
Avg EPS beat(4)-7.78%
Min EPS beat(4)-43.04%
Max EPS beat(4)23.76%
EPS beat(8)6
Avg EPS beat(8)11.3%
EPS beat(12)9
Avg EPS beat(12)15.51%
EPS beat(16)9
Avg EPS beat(16)5.45%
Revenue beat(2)2
Avg Revenue beat(2)8.53%
Min Revenue beat(2)2.3%
Max Revenue beat(2)14.77%
Revenue beat(4)3
Avg Revenue beat(4)-2.99%
Min Revenue beat(4)-32.93%
Max Revenue beat(4)14.77%
Revenue beat(8)3
Avg Revenue beat(8)-4.38%
Revenue beat(12)5
Avg Revenue beat(12)-1.46%
Revenue beat(16)6
Avg Revenue beat(16)-4.6%
PT rev (1m)0%
PT rev (3m)1.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)45.02%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-1.04%
Revenue NY rev (3m)-2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 15.39 | ||
| P/S | 1.27 | ||
| P/FCF | 40.18 | ||
| P/OCF | 6.17 | ||
| P/B | 1.21 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 10.44 |
EPS(TTM)1.06
EY6.55%
EPS(NY)1.05
Fwd EY6.5%
FCF(TTM)0.4
FCFY2.49%
OCF(TTM)2.62
OCFY16.2%
SpS12.78
BVpS13.37
TBVpS11.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 7.89% | ||
| ROCE | 5.17% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.36% | ||
| OM | 12.58% | ||
| PM (TTM) | 8.25% | ||
| GM | 69.69% | ||
| FCFM | 3.15% |
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%
ROICexcg growth 3Y-16.45%
ROICexcg 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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 26.52 | ||
| Debt/EBITDA | 3.93 | ||
| Cap/Depr | 236.66% | ||
| Cap/Sales | 17.36% | ||
| Interest Coverage | 3.21 | ||
| Cash Conversion | 102.99% | ||
| Profit Quality | 38.17% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.19 |
F-Score3
WACC6.71%
ROIC/WACC0.61
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)-40.45%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-78.12%
EPS Next Y-31.89%
EPS Next 2Y-14.24%
EPS Next 3Y-7.51%
EPS Next 5Y-3.46%
Revenue 1Y (TTM)-40.6%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-66.47%
Revenue Next Year-53.95%
Revenue Next 2Y-31.61%
Revenue Next 3Y-23.09%
Revenue Next 5Y-14.55%
EBIT growth 1Y-27.18%
EBIT growth 3Y-20.77%
EBIT growth 5Y-11.2%
EBIT Next Year39.55%
EBIT Next 3Y12.75%
EBIT Next 5YN/A
FCF growth 1Y138.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.41%
OCF growth 3Y0.44%
OCF growth 5Y-1.52%