MDU RESOURCES GROUP INC (MDU)
US5526901096 - Common Stock
MDU gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 43 industry peers in the Construction & Engineering industry. MDU scores excellent on profitability, but there are concerns on its financial health. MDU has a valuation in line with the averages, but 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.
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 5.29%, MDU is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
MDU has a Return On Equity of 14.28%. This is amongst the best in the industry. MDU outperforms 82.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.24%, MDU is in line with its industry, outperforming 58.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MDU is below the industry average of 8.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 14.28% | ||
| ROIC | 5.24% |
ROA(3y)4.45%
ROA(5y)4.51%
ROE(3y)11.9%
ROE(5y)12.03%
ROIC(3y)5.62%
ROIC(5y)5.85%
1.3 Margins
MDU has a better Profit Margin (8.91%) than 95.12% of its industry peers.
In the last couple of years the Profit Margin of MDU has grown nicely.
MDU's Operating Margin of 9.15% is amongst the best of the industry. MDU outperforms 85.37% of its industry peers.
MDU's Operating Margin has been stable in the last couple of years.
MDU's Gross Margin of 81.73% is amongst the best of the industry. MDU outperforms 100.00% of its industry peers.
MDU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.15% | ||
| PM (TTM) | 8.91% | ||
| GM | 81.73% |
OM growth 3Y-2.44%
OM growth 5Y0.63%
PM growth 3Y8.08%
PM growth 5Y8.18%
GM growth 3Y-3.78%
GM growth 5Y-1.76%
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.
MDU has about the same amout of shares outstanding than it did 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 1.68, 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 1.68, MDU is doing worse than 63.41% of the companies in the same industry.
A Debt/Equity ratio of 0.80 indicates that MDU is somewhat dependend on debt financing.
MDU has a Debt to Equity ratio of 0.80. This is in the lower half of the industry: MDU underperforms 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.68 |
ROIC/WACC0.56
WACC9.34%
2.3 Liquidity
A Current Ratio of 1.27 indicates that MDU should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.27, MDU is in line with its industry, outperforming 41.46% of the companies in the same industry.
A Quick Ratio of 1.19 indicates that MDU should not have too much problems paying its short term obligations.
The Quick ratio of MDU (1.19) is worse than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
MDU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
MDU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.57% yearly.
MDU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.77%.
The Revenue has been growing slightly by 0.55% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y-2.45%
EPS 5Y5.57%
EPS growth Q2Q-1.75%
Revenue 1Y (TTM)-21.77%
Revenue growth 3Y-5.58%
Revenue growth 5Y0.55%
Revenue growth Q2Q-38.94%
3.2 Future
The Earnings Per Share is expected to grow by 1.65% on average over the next years.
Based on estimates for the next years, MDU will show a small growth in Revenue. The Revenue will grow by 0.41% on average per year.
EPS Next Y-23.27%
EPS Next 2Y-9.51%
EPS Next 3Y1.65%
EPS Next 5YN/A
Revenue Next Year-5.45%
Revenue Next 2Y-0.86%
Revenue Next 3Y0.41%
Revenue Next 5YN/A
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.10 indicates a correct valuation of MDU.
Based on the Price/Earnings ratio, MDU is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
MDU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.38.
With a Price/Forward Earnings ratio of 18.38, MDU is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDU indicates a somewhat cheap valuation: MDU is cheaper than 65.85% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MDU to the average of the S&P500 Index (20.35), we can say MDU is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 18.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MDU is valued a bit cheaper than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
The decent profitability rating of MDU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.53
EPS Next 2Y-9.51%
EPS Next 3Y1.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, MDU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.78, MDU pays a better dividend. On top of this MDU pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, MDU has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of MDU has a limited annual growth rate of 0.05%.
MDU has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)0.05%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
38.89% of the earnings are spent on dividend by MDU. This is a low number and sustainable payout ratio.
The dividend of MDU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.89%
EPS Next 2Y-9.51%
EPS Next 3Y1.65%
MDU RESOURCES GROUP INC
NYSE:MDU (5/10/2024, 7:05:40 PM)
After market: 25.52 0 (0%)25.52
-0.03 (-0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.20B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 18.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.29% | ||
| ROE | 14.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.15% | ||
| PM (TTM) | 8.91% | ||
| GM | 81.73% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0%
EPS 3Y-2.45%
EPS 5Y
EPS growth Q2Q
EPS Next Y-23.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.77%
Revenue growth 3Y-5.58%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y