MDU RESOURCES GROUP INC (MDU)
US5526901096 - Common Stock
We assign a fundamental rating of 4 out of 10 to MDU. MDU was compared to 44 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
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
Looking at the Return On Assets, with a value of 5.11%, MDU is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
MDU has a better Return On Equity (13.49%) than 73.81% of its industry peers.
MDU has a Return On Invested Capital (5.58%) which is comparable to the rest of the industry.
MDU had an Average Return On Invested Capital over the past 3 years of 5.62%. This is below the industry average of 9.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 13.49% | ||
| ROIC | 5.58% |
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's Profit Margin of 9.26% is amongst the best of the industry. MDU outperforms 97.62% of its industry peers.
In the last couple of years the Profit Margin of MDU has grown nicely.
The Operating Margin of MDU (10.26%) is better than 85.71% of its industry peers.
MDU's Operating Margin has been stable in the last couple of years.
MDU has a better Gross Margin (85.15%) than 100.00% of its industry peers.
MDU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.26% | ||
| PM (TTM) | 9.26% | ||
| GM | 85.15% |
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.
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
MDU has an Altman-Z score of 1.49. This is a bad value and indicates that MDU is not financially healthy and even has some risk of bankruptcy.
MDU's Altman-Z score of 1.49 is on the low side compared to the rest of the industry. MDU is outperformed by 73.81% of its industry peers.
The Debt to FCF ratio of MDU is 79.98, which is on the high side as it means it would take MDU, 79.98 years of fcf income to pay off all of its debts.
MDU's Debt to FCF ratio of 79.98 is on the low side compared to the rest of the industry. MDU is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that MDU is somewhat dependend on debt financing.
MDU has a Debt to Equity ratio (0.73) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 79.98 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.52
WACC10.72%
2.3 Liquidity
A Current Ratio of 1.21 indicates that MDU should not have too much problems paying its short term obligations.
The Current ratio of MDU (1.21) is worse than 71.43% of its industry peers.
MDU has a Quick Ratio of 1.15. This is a normal value and indicates that MDU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.15, MDU is doing worse than 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The earnings per share for MDU have decreased by -5.49% in the last year.
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 -33.22%.
MDU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.55% yearly.
EPS 1Y (TTM)-5.49%
EPS 3Y-2.45%
EPS 5Y5.57%
EPS Q2Q%-15.79%
Revenue 1Y (TTM)-33.22%
Revenue growth 3Y-5.58%
Revenue growth 5Y0.55%
Sales Q2Q%4.97%
3.2 Future
Based on estimates for the next years, MDU will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.92% on average per year.
MDU is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -27.30% yearly.
EPS Next Y-16.78%
EPS Next 2Y-20.65%
EPS Next 3Y-17.92%
EPS Next 5YN/A
Revenue Next Year-15.4%
Revenue Next 2Y-37.08%
Revenue Next 3Y-27.3%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.21, which indicates a very decent valuation of MDU.
MDU's Price/Earnings ratio is rather cheap when compared to the industry. MDU is cheaper than 97.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of MDU to the average of the S&P500 Index (28.96), we can say MDU is valued rather cheaply.
A Price/Forward Earnings ratio of 16.92 indicates a correct valuation of MDU.
Based on the Price/Forward Earnings ratio, MDU is valued a bit cheaper than 76.19% of the companies in the same industry.
MDU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 16.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MDU is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MDU is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 130.97 | ||
| EV/EBITDA | 9.3 |
4.3 Compensation for Growth
MDU has a very decent profitability rating, which may justify a higher PE ratio.
MDU's earnings are expected to decrease with -17.92% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.01
EPS Next 2Y-20.65%
EPS Next 3Y-17.92%
5. Dividend
5.1 Amount
MDU has a Yearly Dividend Yield of 2.91%. Purely for dividend investing, there may be better candidates out there.
The stock price of MDU dropped by -23.49% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 0.84, 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 2.23, MDU pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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
30.01% of the earnings are spent on dividend by MDU. This is a low number and sustainable payout ratio.
DP30.01%
EPS Next 2Y-20.65%
EPS Next 3Y-17.92%
MDU RESOURCES GROUP INC
NYSE:MDU (11/21/2024, 8:04:00 PM)
After market: 19.45 +0.17 (+0.88%)19.28
+0.48 (+2.55%)
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 Cap3.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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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 | 11.21 | ||
| Fwd PE | 16.92 | ||
| 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)2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 13.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.26% | ||
| PM (TTM) | 9.26% | ||
| GM | 85.15% | ||
| 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.15 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.49%
EPS 3Y-2.45%
EPS 5Y
EPS Q2Q%
EPS Next Y-16.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-33.22%
Revenue growth 3Y-5.58%
Revenue growth 5Y
Sales 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