MDU RESOURCES GROUP INC (MDU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MDU - US5526901096 - Common Stock
19.69 USD
-0.25 (-1.25%)
19.9425 USD
+0.25 (+1.28%)
Overall MDU gets a fundamental rating of 2 out of 10. We evaluated MDU against 14 industry peers in the Gas Utilities industry. MDU may be in some trouble as it scores bad on both profitability and health. MDU does not seem to be growing, but still is valued expensively.
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
With a Return On Assets value of 2.36%, MDU is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 6.22%, MDU is doing worse than 85.71% of the companies in the same industry.
The Return On Invested Capital of MDU (3.36%) is worse than 92.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MDU is below the industry average of 6.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 6.22% | ||
| ROIC | 3.36% |
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 (9.02%) is worse than 64.29% of its industry peers.
In the last couple of years the Profit Margin of MDU has grown nicely.
MDU's Operating Margin of 14.79% is on the low side compared to the rest of the industry. MDU is outperformed by 71.43% 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 62.94%, MDU is in line with its industry, outperforming 57.14% 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 | 14.79% | ||
| PM (TTM) | 9.02% | ||
| GM | 62.94% |
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.
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
The debt/assets ratio for MDU is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.11, we must say that MDU is in the distress zone and has some risk of bankruptcy.
MDU's Altman-Z score of 1.11 is in line compared to the rest of the industry. MDU outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that MDU is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.80, MDU belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.11 |
ROIC/WACC0.48
WACC6.99%
2.3 Liquidity
A Current Ratio of 0.75 indicates that MDU may have some problems paying its short term obligations.
With a decent Current ratio value of 0.75, MDU is doing good in the industry, outperforming 71.43% of the companies in the same industry.
MDU has a Quick Ratio of 0.75. 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 better Quick ratio (0.69) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The earnings per share for MDU have decreased strongly by -51.74% in the last year.
MDU shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.17% yearly.
The Revenue for MDU has decreased by -57.80% in the past year. This is quite bad
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)-51.74%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-71.87%
Revenue 1Y (TTM)-57.8%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-70%
3.2 Future
Based on estimates for the next years, MDU will show a decrease in Earnings Per Share. The EPS will decrease by -2.31% on average per year.
MDU is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -10.80% yearly.
EPS Next Y-34.15%
EPS Next 2Y-15.01%
EPS Next 3Y-7.72%
EPS Next 5Y-2.31%
Revenue Next Year-53.7%
Revenue Next 2Y-30.92%
Revenue Next 3Y-20.91%
Revenue Next 5Y-10.8%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 23.72, which indicates a rather expensive current valuation of MDU.
MDU's Price/Earnings ratio is rather expensive when compared to the industry. MDU is more expensive than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.92. MDU is around the same levels.
MDU is valuated rather expensively with a Price/Forward Earnings ratio of 19.06.
71.43% of the companies in the same industry are cheaper than MDU, based on the Price/Forward Earnings ratio.
MDU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 19.06 |
4.2 Price Multiples
MDU's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. MDU is more expensive than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.55 |
4.3 Compensation for Growth
MDU's earnings are expected to decrease with -7.72% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.01%
EPS Next 3Y-7.72%
5. Dividend
5.1 Amount
MDU has a Yearly Dividend Yield of 2.87%.
Compared to an average industry Dividend Yield of 3.88, MDU is paying slightly less dividend.
MDU's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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 62.43% of its income as dividend. This is not 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.
DP62.43%
EPS Next 2Y-15.01%
EPS Next 3Y-7.72%
19.69
-0.25 (-1.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners84.76%
Inst Owner Change0%
Ins Owners0.41%
Ins Owner Change1.54%
Market Cap4.02B
Revenue(TTM)1.88B
Net Income(TTM)169.26M
Analysts84
Price Target21.22 (7.77%)
Short Float %5.96%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend0.51
Dividend Growth(5Y)-8.99%
DP62.43%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.52%
Min EPS beat(2)-43.04%
Max EPS beat(2)-18%
EPS beat(4)1
Avg EPS beat(4)-18.22%
Min EPS beat(4)-43.04%
Max EPS beat(4)8.7%
EPS beat(8)5
Avg EPS beat(8)2.79%
EPS beat(12)9
Avg EPS beat(12)14.52%
EPS beat(16)9
Avg EPS beat(16)5.47%
Revenue beat(2)2
Avg Revenue beat(2)8.53%
Min Revenue beat(2)2.29%
Max Revenue beat(2)14.77%
Revenue beat(4)3
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-32.93%
Max Revenue beat(4)14.77%
Revenue beat(8)4
Avg Revenue beat(8)-3.76%
Revenue beat(12)6
Avg Revenue beat(12)-1.09%
Revenue beat(16)7
Avg Revenue beat(16)-3.29%
PT rev (1m)0.97%
PT rev (3m)2.72%
EPS NQ rev (1m)6.74%
EPS NQ rev (3m)1.51%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-2.76%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-13.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 19.06 | ||
| P/S | 2.14 | ||
| P/FCF | N/A | ||
| P/OCF | 8.88 | ||
| P/B | 1.48 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 13.55 |
EPS(TTM)0.83
EY4.22%
EPS(NY)1.03
Fwd EY5.25%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)2.22
OCFY11.26%
SpS9.18
BVpS13.32
TBVpS11.63
PEG (NY)N/A
PEG (5Y)N/A
Graham Number15.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 6.22% | ||
| ROCE | 4.26% | ||
| ROIC | 3.36% | ||
| ROICexc | 3.4% | ||
| ROICexgc | 3.6% | ||
| OM | 14.79% | ||
| PM (TTM) | 9.02% | ||
| GM | 62.94% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y-16.45%
ROICexgc 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 Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.71 | ||
| Cap/Depr | 253.75% | ||
| Cap/Sales | 25.35% | ||
| Interest Coverage | 2.72 | ||
| Cash Conversion | 97.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.11 |
F-Score3
WACC6.99%
ROIC/WACC0.48
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)-51.74%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-71.87%
EPS Next Y-34.15%
EPS Next 2Y-15.01%
EPS Next 3Y-7.72%
EPS Next 5Y-2.31%
Revenue 1Y (TTM)-57.8%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-70%
Revenue Next Year-53.7%
Revenue Next 2Y-30.92%
Revenue Next 3Y-20.91%
Revenue Next 5Y-10.8%
EBIT growth 1Y-39.31%
EBIT growth 3Y-20.77%
EBIT growth 5Y-11.2%
EBIT Next Year30.81%
EBIT Next 3Y14.12%
EBIT Next 5Y10.38%
FCF growth 1Y86.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.3%
OCF growth 3Y0.44%
OCF growth 5Y-1.52%
MDU RESOURCES GROUP INC / MDU FAQ
What is the ChartMill fundamental rating of MDU RESOURCES GROUP INC (MDU) stock?
ChartMill assigns a fundamental rating of 2 / 10 to MDU.
Can you provide the valuation status for MDU RESOURCES GROUP INC?
ChartMill assigns a valuation rating of 1 / 10 to MDU RESOURCES GROUP INC (MDU). This can be considered as Overvalued.
How profitable is MDU RESOURCES GROUP INC (MDU) stock?
MDU RESOURCES GROUP INC (MDU) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for MDU stock?
The Price/Earnings (PE) ratio for MDU RESOURCES GROUP INC (MDU) is 23.72 and the Price/Book (PB) ratio is 1.48.
How sustainable is the dividend of MDU RESOURCES GROUP INC (MDU) stock?
The dividend rating of MDU RESOURCES GROUP INC (MDU) is 3 / 10 and the dividend payout ratio is 62.43%.