MDU RESOURCES GROUP INC (MDU) Stock Fundamental Analysis
NYSE:MDU - New York Stock Exchange, Inc. - US5526901096 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MDU. MDU was compared to 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 correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MDU was profitable.
MDU had a positive operating cash flow in the past year.
In the past 5 years MDU has always been profitable.
In the past 5 years MDU always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.77%, MDU is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.56%, MDU is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
The Return On Invested Capital of MDU (4.84%) is worse than 64.29% 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 6.29%.
The 3 year average ROIC (3.80%) for MDU is below the current ROIC(4.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 9.56% | ||
| ROIC | 4.84% |
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
The Profit Margin of MDU (7.93%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MDU has grown nicely.
MDU has a Operating Margin of 11.73%. This is in the lower half of the industry: MDU underperforms 78.57% of its industry peers.
In the last couple of years the Operating Margin of MDU has grown nicely.
MDU has a Gross Margin of 73.07%. This is in the better half of the industry: MDU outperforms 71.43% of its industry peers.
In the last couple of years the Gross Margin of MDU has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.73% | ||
| PM (TTM) | 7.93% | ||
| GM | 73.07% |
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.
The number of shares outstanding for MDU remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MDU has more shares outstanding
MDU has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that MDU is in the distress zone and has some risk of bankruptcy.
MDU has a better Altman-Z score (1.36) than 71.43% of its industry peers.
MDU has a debt to FCF ratio of 33.73. This is a negative value and a sign of low solvency as MDU would need 33.73 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 33.73, MDU is doing good in the industry, outperforming 64.29% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that MDU is somewhat dependend on debt financing.
MDU has a better Debt to Equity ratio (0.74) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 33.73 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.7
WACC6.94%
2.3 Liquidity
MDU has a Current Ratio of 0.85. This is a bad value and indicates that MDU is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of MDU (0.85) is comparable to the rest of the industry.
A Quick Ratio of 0.82 indicates that MDU may have some problems paying its short term obligations.
The Quick ratio of MDU (0.82) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
MDU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.62%.
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.
The Revenue for MDU has decreased by -25.50% 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)-37.62%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-25.5%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-44.4%
3.2 Future
Based on estimates for the next years, MDU will show a decrease in Earnings Per Share. The EPS will decrease by -7.50% 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-32.01%
EPS Next 2Y-14.58%
EPS Next 3Y-7.5%
EPS Next 5YN/A
Revenue Next Year-52.62%
Revenue Next 2Y-30.33%
Revenue Next 3Y-21.49%
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 13.05 indicates a correct valuation of MDU.
71.43% of the companies in the same industry are more expensive than MDU, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.25, MDU is valued rather cheaply.
MDU is valuated correctly with a Price/Forward Earnings ratio of 16.39.
Compared to the rest of the industry, the Price/Forward Earnings 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 an average S&P500 Price/Forward Earnings ratio of 36.80, MDU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 16.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDU is on the same level as its industry peers.
MDU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.72 | ||
| EV/EBITDA | 9.7 |
4.3 Compensation for Growth
The decent profitability rating of MDU may justify a higher PE ratio.
A cheap valuation may be justified as MDU's earnings are expected to decrease with -7.50% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.58%
EPS Next 3Y-7.5%
5. Dividend
5.1 Amount
MDU has a Yearly Dividend Yield of 3.08%.
MDU's Dividend Yield is slightly below the industry average, which is at 3.96.
MDU's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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 39.49% 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.
DP39.49%
EPS Next 2Y-14.58%
EPS Next 3Y-7.5%
17.1
-0.15 (-0.87%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.98%
Inst Owner Change-0.16%
Ins Owners0.42%
Ins Owner Change0.93%
Market Cap3.49B
Analysts82.22
Price Target19.89 (16.32%)
Short Float %3.12%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend0.51
Dividend Growth(5Y)-8.99%
DP39.49%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.93%
Min EPS beat(2)-20.56%
Max EPS beat(2)8.7%
EPS beat(4)3
Avg EPS beat(4)14.82%
Min EPS beat(4)-20.56%
Max EPS beat(4)47.36%
EPS beat(8)7
Avg EPS beat(8)26.79%
EPS beat(12)9
Avg EPS beat(12)16.41%
EPS beat(16)9
Avg EPS beat(16)7.74%
Revenue beat(2)1
Avg Revenue beat(2)-15.32%
Min Revenue beat(2)-32.93%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)-7.25%
Min Revenue beat(4)-32.93%
Max Revenue beat(4)3.91%
Revenue beat(8)2
Avg Revenue beat(8)-9.69%
Revenue beat(12)4
Avg Revenue beat(12)-5.39%
Revenue beat(16)5
Avg Revenue beat(16)-5.73%
PT rev (1m)1.3%
PT rev (3m)-1.27%
EPS NQ rev (1m)3.4%
EPS NQ rev (3m)3.11%
EPS NY rev (1m)0%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)-2.55%
Revenue NQ rev (3m)-3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 16.39 | ||
| P/S | 1.06 | ||
| P/FCF | 53.72 | ||
| P/OCF | 6.3 | ||
| P/B | 1.27 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 9.7 |
EPS(TTM)1.31
EY7.66%
EPS(NY)1.04
Fwd EY6.1%
FCF(TTM)0.32
FCFY1.86%
OCF(TTM)2.71
OCFY15.88%
SpS16.19
BVpS13.43
TBVpS11.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 9.56% | ||
| ROCE | 6.13% | ||
| ROIC | 4.84% | ||
| ROICexc | 4.89% | ||
| ROICexgc | 5.18% | ||
| OM | 11.73% | ||
| PM (TTM) | 7.93% | ||
| GM | 73.07% | ||
| FCFM | 1.97% |
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-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 33.73 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 250.35% | ||
| Cap/Sales | 14.8% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 95.06% | ||
| Profit Quality | 24.81% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.36 |
F-Score4
WACC6.94%
ROIC/WACC0.7
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)-37.62%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-23.08%
EPS Next Y-32.01%
EPS Next 2Y-14.58%
EPS Next 3Y-7.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-25.5%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-44.4%
Revenue Next Year-52.62%
Revenue Next 2Y-30.33%
Revenue Next 3Y-21.49%
Revenue Next 5Y-14.55%
EBIT growth 1Y-12.51%
EBIT growth 3Y-20.77%
EBIT growth 5Y-11.2%
EBIT Next Year40.16%
EBIT Next 3Y13.49%
EBIT Next 5YN/A
FCF growth 1Y121.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y56.65%
OCF growth 3Y0.44%
OCF growth 5Y-1.52%