MDU RESOURCES GROUP INC (MDU) Stock Fundamental Analysis
NYSE:MDU - New York Stock Exchange, Inc. - US5526901096 - Common Stock - Currency: USD
MDU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Gas Utilities industry. There are concerns on the financial health of MDU while its profitability can be described as average. MDU is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MDU had positive earnings in the past year.
In the past year MDU had a positive cash flow from operations.
Each year in the past 5 years MDU has been profitable.
In the past 5 years MDU always reported a positive cash flow from operatings.
1.2 Ratios
MDU has a better Return On Assets (3.99%) than 78.57% of its industry peers.
MDU has a Return On Equity (10.45%) which is in line with its industry peers.
MDU has a Return On Invested Capital of 5.10%. This is comparable to the rest of the industry: MDU outperforms 42.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MDU is below the industry average of 6.35%.
The 3 year average ROIC (3.80%) for MDU is below the current ROIC(5.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 10.45% | ||
| ROIC | 5.1% |
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
MDU has a Profit Margin (7.31%) which is in line with its industry peers.
MDU's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 10.68%, MDU is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MDU has grown nicely.
Looking at the Gross Margin, with a value of 77.52%, MDU is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Gross Margin of MDU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.68% | ||
| PM (TTM) | 7.31% | ||
| GM | 77.52% |
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.
MDU has about the same amout of shares outstanding than it did 1 year ago.
MDU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MDU has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that MDU is in the distress zone and has some risk of bankruptcy.
MDU has a better Altman-Z score (1.44) than 85.71% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that MDU is somewhat dependend on debt financing.
MDU's Debt to Equity ratio of 0.79 is amongst the best of the industry. MDU outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.44 |
ROIC/WACC0.74
WACC6.94%
2.3 Liquidity
MDU has a Current Ratio of 0.98. 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's Current ratio of 0.98 is amongst the best of the industry. MDU outperforms 85.71% of its industry peers.
A Quick Ratio of 0.92 indicates that MDU may have some problems paying its short term obligations.
MDU has a better Quick ratio (0.92) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
MDU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.99%.
Measured over the past years, MDU shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.17% on average per year.
Looking at the last year, MDU shows a very negative growth in Revenue. The Revenue has decreased by -17.39% in the last year.
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)-20.99%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-51.79%
Revenue 1Y (TTM)-17.39%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-52.83%
3.2 Future
Based on estimates for the next years, MDU will show a decrease in Earnings Per Share. The EPS will decrease by -8.50% on average per year.
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-32.76%
EPS Next 2Y-15.31%
EPS Next 3Y-8.5%
EPS Next 5YN/A
Revenue Next Year-53.08%
Revenue Next 2Y-30.24%
Revenue Next 3Y-21.36%
Revenue Next 5Y-14.55%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 12.23 indicates a correct valuation of MDU.
MDU's Price/Earnings ratio is rather cheap when compared to the industry. MDU is cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of MDU to the average of the S&P500 Index (28.18), we can say MDU is valued rather cheaply.
With a Price/Forward Earnings ratio of 18.19, MDU is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDU is on the same level as its industry peers.
MDU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 18.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDU indicates a somewhat cheap valuation: MDU is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.5 |
4.3 Compensation for Growth
MDU has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MDU's earnings are expected to decrease with -8.50% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.31%
EPS Next 3Y-8.5%
5. Dividend
5.1 Amount
MDU has a Yearly Dividend Yield of 3.00%. Purely for dividend investing, there may be better candidates out there.
MDU's Dividend Yield is slightly below the industry average, which is at 3.91.
MDU's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
5.2 History
The dividend of MDU decreases each year by -8.99%.
MDU has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.99%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MDU pays out 36.61% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of MDU has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP36.61%
EPS Next 2Y-15.31%
EPS Next 3Y-8.5%
NYSE:MDU (5/5/2025, 10:49:50 AM)
17.49
-0.03 (-0.17%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.51%
Inst Owner Change-0.64%
Ins Owners0.3%
Ins Owner Change1.8%
Market Cap3.57B
Analysts82.22
Price Target20.15 (15.21%)
Short Float %3.24%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
Yearly Dividend0.51
Dividend Growth(5Y)-8.99%
DP36.61%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.6%
Min EPS beat(2)-20.56%
Max EPS beat(2)23.76%
EPS beat(4)3
Avg EPS beat(4)15.23%
Min EPS beat(4)-20.56%
Max EPS beat(4)47.36%
EPS beat(8)7
Avg EPS beat(8)27.34%
EPS beat(12)8
Avg EPS beat(12)13.5%
EPS beat(16)9
Avg EPS beat(16)11.55%
Revenue beat(2)1
Avg Revenue beat(2)-14.51%
Min Revenue beat(2)-32.93%
Max Revenue beat(2)3.91%
Revenue beat(4)1
Avg Revenue beat(4)-10.17%
Min Revenue beat(4)-32.93%
Max Revenue beat(4)3.91%
Revenue beat(8)2
Avg Revenue beat(8)-6.92%
Revenue beat(12)4
Avg Revenue beat(12)-5.4%
Revenue beat(16)5
Avg Revenue beat(16)0.79%
PT rev (1m)0%
PT rev (3m)-1.25%
EPS NQ rev (1m)-6.42%
EPS NQ rev (3m)-14.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 18.19 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | 7.11 | ||
| P/B | 1.33 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 9.5 |
EPS(TTM)1.43
EY8.18%
EPS(NY)0.96
Fwd EY5.5%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)2.46
OCFY14.06%
SpS18.83
BVpS13.17
TBVpS11.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 10.45% | ||
| ROCE | 6.46% | ||
| ROIC | 5.1% | ||
| ROICexc | 5.16% | ||
| ROICexgc | 5.46% | ||
| OM | 10.68% | ||
| PM (TTM) | 7.31% | ||
| GM | 77.52% | ||
| 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%
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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 261.31% | ||
| Cap/Sales | 13.59% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 82.2% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 1.44 |
F-Score3
WACC6.94%
ROIC/WACC0.74
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)-20.99%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-51.79%
EPS Next Y-32.76%
EPS Next 2Y-15.31%
EPS Next 3Y-8.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.39%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-52.83%
Revenue Next Year-53.08%
Revenue Next 2Y-30.24%
Revenue Next 3Y-21.36%
Revenue Next 5Y-14.55%
EBIT growth 1Y-3.5%
EBIT growth 3Y-20.77%
EBIT growth 5Y-11.2%
EBIT Next Year40.16%
EBIT Next 3Y13.49%
EBIT Next 5YN/A
FCF growth 1Y89.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.02%
OCF growth 3Y0.44%
OCF growth 5Y-1.52%