MDU RESOURCES GROUP INC (MDU) Stock Fundamental Analysis
USA - NYSE:MDU - US5526901096 - Common Stock
16.09 USD
+0.24 (+1.51%)
16.27 USD
+0.18 (+1.12%)
MDU gets a fundamental rating of 3 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 expensive valuation and it also scores bad on growth.
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
The Return On Assets of MDU (3.10%) is comparable to the rest of the industry.
MDU has a Return On Equity (7.89%) which is comparable to the rest of the 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 3 year average ROIC (3.80%) for MDU is below the current ROIC(4.09%), indicating increased profibility in the last year.
| 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.
With a Operating Margin value of 12.58%, MDU is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MDU has grown nicely.
Looking at the Gross Margin, with a value of 69.69%, MDU is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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
MDU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MDU has about the same amout of shares outstanding than it did 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 1.18, we must say that MDU is in the distress zone and has some risk of bankruptcy.
MDU has a Altman-Z score (1.18) which is in line with its industry peers.
The Debt to FCF ratio of MDU is 26.52, which is on the high side as it means it would take MDU, 26.52 years of fcf income to pay off all of its debts.
MDU has a Debt to FCF ratio of 26.52. This is comparable to the rest of the industry: MDU outperforms 57.14% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that MDU is somewhat dependend on debt financing.
The Debt to Equity ratio of MDU (0.75) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 26.52 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.61
WACC6.68%
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.
With a decent Current ratio value of 0.74, MDU is doing good in the industry, outperforming 71.43% of the companies in the same industry.
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 has a better Quick ratio (0.71) than 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.
Looking at the last year, MDU shows a very negative growth in Revenue. The Revenue has decreased by -40.60% in the last year.
MDU shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -19.92% yearly.
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 -3.46% yearly.
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-31.89%
EPS Next 2Y-14.24%
EPS Next 3Y-7.51%
EPS Next 5Y-3.46%
Revenue Next Year-53.95%
Revenue Next 2Y-31.61%
Revenue Next 3Y-23.09%
Revenue Next 5Y-14.55%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 15.18, the valuation of MDU can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of MDU is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MDU to the average of the S&P500 Index (27.41), we can say MDU is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.30, MDU is valued correctly.
MDU's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.88. MDU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 15.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDU indicates a slightly more expensive valuation: MDU is more expensive than 64.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MDU is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.96 | ||
| EV/EBITDA | 10.31 |
4.3 Compensation for Growth
A cheap valuation may be justified as MDU's earnings are expected to decrease with -7.51% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.24%
EPS Next 3Y-7.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.41%, MDU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.95, MDU is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, MDU pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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
48.53% of the earnings are spent on dividend by MDU. 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-7.51%
16.09
+0.24 (+1.51%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.69%
Inst Owner Change-3.04%
Ins Owners0.42%
Ins Owner Change0.34%
Market Cap3.29B
Analysts82.22
Price Target19.89 (23.62%)
Short Float %3.21%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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)0%
PT rev (3m)1.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)33.22%
EPS NY rev (1m)0.19%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-1.04%
Revenue NY rev (3m)-2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 15.3 | ||
| P/S | 1.26 | ||
| P/FCF | 39.96 | ||
| P/OCF | 6.14 | ||
| P/B | 1.2 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)1.06
EY6.59%
EPS(NY)1.05
Fwd EY6.54%
FCF(TTM)0.4
FCFY2.5%
OCF(TTM)2.62
OCFY16.29%
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 | 1.18 |
F-Score3
WACC6.68%
ROIC/WACC0.61
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-31.89%
EPS Next 2Y-14.24%
EPS Next 3Y-7.51%
EPS Next 5Y-3.46%
Revenue 1Y (TTM)-40.6%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-66.47%
Revenue Next Year-53.95%
Revenue Next 2Y-31.61%
Revenue Next 3Y-23.09%
Revenue Next 5Y-14.55%
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%