MDU RESOURCES GROUP INC (MDU) Stock Fundamental Analysis
USA - NYSE:MDU - US5526901096 - Common Stock
19.35 USD
-0.03 (-0.15%)
19.3518 USD
+0 (+0.01%)
We assign a fundamental rating of 3 out of 10 to MDU. MDU was compared to 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 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MDU was profitable.
MDU had a positive operating cash flow in the past year.
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
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.
Looking at the Return On Equity, with a value of 7.89%, MDU is in line with its industry, outperforming 42.86% of the companies in the same industry.
With a Return On Invested Capital value of 4.09%, MDU is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for MDU is below the industry average of 6.32%.
The last Return On Invested Capital (4.09%) for MDU is above the 3 year average (3.80%), which is a sign of increasing profitability.
| 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
The Profit Margin of MDU (8.25%) is comparable to the rest of the 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.
The Gross Margin of MDU (69.69%) is better 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.
MDU has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MDU has been increased compared to 5 years ago.
MDU has a worse debt/assets ratio than last year.
2.2 Solvency
MDU has an Altman-Z score of 1.28. This is a bad value and indicates that MDU is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of MDU (1.28) is better than 64.29% 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.
With a Debt to FCF ratio value of 26.52, MDU perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 0.75 indicates that MDU is somewhat dependend on debt financing.
MDU has a Debt to Equity ratio of 0.75. This is amongst the best in the industry. MDU outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 26.52 | ||
| Altman-Z | 1.28 |
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.
MDU has a Current ratio of 0.74. This is in the better half of the industry: MDU outperforms 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's Quick ratio of 0.71 is amongst the best of 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
The Revenue for MDU have been decreasing by -19.92% on average. This is quite bad
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
MDU is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.84% yearly.
MDU is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -14.42% yearly.
EPS Next Y-32.28%
EPS Next 2Y-14.24%
EPS Next 3Y-7.45%
EPS Next 5Y-1.84%
Revenue Next Year-53.56%
Revenue Next 2Y-30.9%
Revenue Next 3Y-21.41%
Revenue Next 5Y-14.42%
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 accelerating.
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
With a Price/Earnings ratio of 18.25, MDU is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as MDU.
MDU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.77.
MDU is valuated rather expensively with a Price/Forward Earnings ratio of 18.40.
Based on the Price/Forward Earnings ratio, MDU is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of MDU to the average of the S&P500 Index (23.23), we can say MDU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 18.4 |
4.2 Price Multiples
MDU's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MDU is more expensive than 71.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MDU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.05 | ||
| EV/EBITDA | 11.69 |
4.3 Compensation for Growth
A cheap valuation may be justified as MDU's earnings are expected to decrease with -7.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.24%
EPS Next 3Y-7.45%
5. Dividend
5.1 Amount
MDU has a Yearly Dividend Yield of 2.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.84, MDU is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, MDU pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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-7.45%
19.35
-0.03 (-0.15%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.28%
Inst Owner Change-0.01%
Ins Owners0.43%
Ins Owner Change0.34%
Market Cap3.95B
Analysts86.67
Price Target20.66 (6.77%)
Short Float %3.3%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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)3.85%
PT rev (3m)3.85%
EPS NQ rev (1m)-8.91%
EPS NQ rev (3m)21.36%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 18.4 | ||
| P/S | 1.51 | ||
| P/FCF | 48.05 | ||
| P/OCF | 7.38 | ||
| P/B | 1.45 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 11.69 |
EPS(TTM)1.06
EY5.48%
EPS(NY)1.05
Fwd EY5.43%
FCF(TTM)0.4
FCFY2.08%
OCF(TTM)2.62
OCFY13.55%
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 | 1.28 |
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-32.28%
EPS Next 2Y-14.24%
EPS Next 3Y-7.45%
EPS Next 5Y-1.84%
Revenue 1Y (TTM)-40.6%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-66.47%
Revenue Next Year-53.56%
Revenue Next 2Y-30.9%
Revenue Next 3Y-21.41%
Revenue Next 5Y-14.42%
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%