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. There are concerns on the financial health of MDU while its profitability can be described as average. MDU has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MDU was profitable.
In the past year MDU had a positive cash flow from operations.
MDU had positive earnings in each of the past 5 years.
Each year in the past 5 years MDU had a positive operating cash flow.
1.2 Ratios
MDU has a better Return On Assets (3.77%) than 64.29% of its industry peers.
The Return On Equity of MDU (9.56%) is better than 64.29% of its industry peers.
The Return On Invested Capital of MDU (4.84%) is worse than 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 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
Looking at the Profit Margin, with a value of 7.93%, MDU is in line with its industry, outperforming 50.00% 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 11.73% 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.
Looking at the Gross Margin, with a value of 73.07%, MDU is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MDU is destroying value.
MDU has about the same amout of shares outstanding than it did 1 year ago.
MDU has more shares outstanding than it did 5 years ago.
MDU has a worse debt/assets ratio than last year.
2.2 Solvency
MDU has an Altman-Z score of 1.35. This is a bad value and indicates that MDU is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.35, MDU is doing good in the industry, outperforming 64.29% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 33.73, MDU is in the better half of 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's Debt to Equity ratio of 0.74 is amongst the best of the industry. MDU outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 33.73 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.7
WACC6.9%
2.3 Liquidity
A Current Ratio of 0.85 indicates that MDU may have some problems paying its short term obligations.
With a Current ratio value of 0.85, MDU perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
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%.
The Earnings Per Share has been decreasing by -3.17% on average over the past years.
Looking at the last year, MDU shows a very negative growth in Revenue. The Revenue has decreased by -25.50% in the last year.
The Revenue for MDU have been decreasing by -19.92% on average. This is quite bad
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
The Earnings Per Share is expected to decrease by -7.50% 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-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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.83 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.
The average S&P500 Price/Earnings ratio is at 27.45. MDU is valued rather cheaply when compared to this.
MDU is valuated correctly with a Price/Forward Earnings ratio of 16.11.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDU is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.90. MDU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 16.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MDU.
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 | 52.81 | ||
| EV/EBITDA | 9.54 |
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 -7.50% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.58%
EPS Next 3Y-7.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, MDU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.98, 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 | 3.09% |
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
39.49% of the earnings are spent on dividend by MDU. This is a low number and sustainable payout ratio.
MDU's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP39.49%
EPS Next 2Y-14.58%
EPS Next 3Y-7.5%
16.81
+0.12 (+0.72%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.98%
Inst Owner Change0.44%
Ins Owners0.42%
Ins Owner Change0.89%
Market Cap3.43B
Analysts82.22
Price Target19.64 (16.84%)
Short Float %2.97%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)-2.53%
PT rev (3m)-2.53%
EPS NQ rev (1m)-1.12%
EPS NQ rev (3m)-0.28%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.83 | ||
| Fwd PE | 16.11 | ||
| P/S | 1.04 | ||
| P/FCF | 52.81 | ||
| P/OCF | 6.19 | ||
| P/B | 1.25 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 9.54 |
EPS(TTM)1.31
EY7.79%
EPS(NY)1.04
Fwd EY6.21%
FCF(TTM)0.32
FCFY1.89%
OCF(TTM)2.71
OCFY16.15%
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
WACC6.9%
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%