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. MDU has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
MDU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.77%, MDU is doing good in the industry, outperforming 64.29% of the companies in the same industry.
MDU's Return On Equity of 9.56% is fine compared to the rest of the industry. MDU outperforms 64.29% of its industry peers.
MDU has a Return On Invested Capital of 4.84%. This is in the lower half of the industry: MDU underperforms 64.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MDU is below the industry average of 6.29%.
The last Return On Invested Capital (4.84%) for MDU is above the 3 year average (3.80%), which is a sign of increasing profitability.
| 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
MDU has a Profit Margin (7.93%) which 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 worse Operating Margin (11.73%) than 78.57% of its industry peers.
In the last couple of years the Operating Margin of MDU has grown nicely.
The Gross Margin of MDU (73.07%) 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 | 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
MDU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, MDU has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that MDU is in the distress zone and has some risk of bankruptcy.
MDU has a Altman-Z score of 1.35. This is in the better half of the industry: MDU outperforms 71.43% of its industry peers.
The Debt to FCF ratio of MDU is 33.73, which is on the high side as it means it would take MDU, 33.73 years of fcf income to pay off all of its debts.
MDU has a Debt to FCF ratio of 33.73. This is in the better half of the industry: MDU outperforms 64.29% of its industry peers.
MDU has a Debt/Equity ratio of 0.74. This is a neutral value indicating MDU is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.74, MDU belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 33.73 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.69
WACC6.97%
2.3 Liquidity
A Current Ratio of 0.85 indicates that MDU may have some problems paying its short term obligations.
MDU has a Current ratio of 0.85. This is comparable to the rest of the industry: MDU outperforms 57.14% of its industry peers.
MDU has a Quick 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.
MDU's Quick ratio of 0.82 is fine compared to the rest of the industry. MDU outperforms 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.
Looking at the last year, MDU shows a very negative growth in Revenue. The Revenue has decreased by -25.50% 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)-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 -7.51% 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-31.94%
EPS Next 2Y-14.61%
EPS Next 3Y-7.51%
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.
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
With a Price/Earnings ratio of 12.88, MDU is valued correctly.
71.43% of the companies in the same industry are more expensive than MDU, based on the Price/Earnings ratio.
MDU is valuated cheaply when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.18, which indicates a correct valuation of MDU.
MDU's Price/Forward Earnings ratio is in line with the industry average.
MDU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.17.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 16.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MDU.
MDU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53 | ||
| EV/EBITDA | 9.56 |
4.3 Compensation for Growth
The decent profitability rating of MDU may justify a higher PE ratio.
MDU's earnings are expected to decrease with -7.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.61%
EPS Next 3Y-7.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.04%, MDU has a reasonable but not impressive dividend return.
MDU's Dividend Yield is slightly below the industry average, which is at 3.98.
MDU's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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 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-14.61%
EPS Next 3Y-7.51%
16.87
-0.36 (-2.09%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.51%
Inst Owner Change0.44%
Ins Owners0.3%
Ins Owner Change0.89%
Market Cap3.45B
Analysts82.22
Price Target20.15 (19.44%)
Short Float %2.9%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)1.22%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.88 | ||
| Fwd PE | 16.18 | ||
| P/S | 1.04 | ||
| P/FCF | 53 | ||
| P/OCF | 6.21 | ||
| P/B | 1.26 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 9.56 |
EPS(TTM)1.31
EY7.77%
EPS(NY)1.04
Fwd EY6.18%
FCF(TTM)0.32
FCFY1.89%
OCF(TTM)2.71
OCFY16.09%
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 | 1.35 |
F-Score4
WACC6.97%
ROIC/WACC0.69
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-31.94%
EPS Next 2Y-14.61%
EPS Next 3Y-7.51%
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-53.08%
Revenue Next 2Y-30.24%
Revenue Next 3Y-21.36%
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%