MDU RESOURCES GROUP INC (MDU) Stock Fundamental Analysis
USA - NYSE:MDU - US5526901096 - Common Stock
17.48 USD
+0.42 (+2.46%)
17.48 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.
MDU had positive earnings in each of the past 5 years.
MDU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MDU has a Return On Assets of 3.10%. This is comparable to the rest of the industry: MDU outperforms 57.14% of its industry peers.
MDU has a Return On Equity (7.89%) which is comparable to the rest of the industry.
The Return On Invested Capital of MDU (4.09%) is worse than 78.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MDU is below the industry average of 6.32%.
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's Operating Margin of 12.58% is on the low side compared to the rest of the industry. MDU is outperformed by 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.
MDU's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MDU is destroying value.
Compared to 1 year ago, MDU has about the same amount of shares outstanding.
The number of shares outstanding for MDU has been increased compared to 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 1.22, we must say that MDU is in the distress zone and has some risk of bankruptcy.
MDU's Altman-Z score of 1.22 is in line compared to the rest of the industry. MDU outperforms 57.14% of its industry peers.
The Debt to FCF ratio of MDU is 26.52, which is on the high side as it means it would take MDU, 26.52 years of fcf income to pay off all of its debts.
MDU has a Debt to FCF ratio of 26.52. This is comparable to the rest of the industry: MDU outperforms 57.14% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that 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 | 1.22 |
ROIC/WACC0.6
WACC6.85%
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.
With a decent Current ratio value of 0.74, MDU is doing good in the industry, outperforming 71.43% of the companies in the same industry.
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 better Quick ratio (0.71) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The earnings per share for MDU have decreased strongly by -40.45% in the last year.
MDU shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.17% yearly.
The Revenue for MDU has decreased by -40.60% in the past year. This is quite bad
MDU shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -19.92% yearly.
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.
The Revenue is expected to decrease by -14.55% on average over the next years. This is quite bad
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
MDU is valuated correctly with a Price/Earnings ratio of 16.49.
MDU's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MDU to the average of the S&P500 Index (27.32), we can say MDU is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.62, MDU is valued correctly.
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 valuation a bit cheaper than the S&P500 average which is at 22.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 16.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MDU is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, MDU is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.41 | ||
| EV/EBITDA | 10.79 |
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 3.48%.
Compared to an average industry Dividend Yield of 3.97, MDU is paying slightly less dividend.
MDU's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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
MDU pays out 48.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
MDU's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP48.53%
EPS Next 2Y-14.24%
EPS Next 3Y-7.51%
17.48
+0.42 (+2.46%)
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 Change0.34%
Market Cap3.57B
Analysts82.22
Price Target19.89 (13.79%)
Short Float %3.21%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
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)33.22%
EPS NY rev (1m)0%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 16.62 | ||
| P/S | 1.37 | ||
| P/FCF | 43.41 | ||
| P/OCF | 6.67 | ||
| P/B | 1.31 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 10.79 |
EPS(TTM)1.06
EY6.06%
EPS(NY)1.05
Fwd EY6.02%
FCF(TTM)0.4
FCFY2.3%
OCF(TTM)2.62
OCFY15%
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 | 1.22 |
F-Score3
WACC6.85%
ROIC/WACC0.6
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%