MDU RESOURCES GROUP INC (MDU)
US5526901096 - Common Stock
We assign a fundamental rating of 4 out of 10 to MDU. MDU was compared to 43 industry peers in the Construction & Engineering industry. MDU has an excellent profitability rating, 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.
MDU had a positive operating cash flow in the past year.
Each year in the past 5 years MDU has been profitable.
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 5.11%, MDU is doing good in the industry, outperforming 74.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.49%, MDU is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
MDU has a Return On Invested Capital of 5.58%. This is comparable to the rest of the industry: MDU outperforms 53.49% of its industry peers.
MDU had an Average Return On Invested Capital over the past 3 years of 5.62%. This is below the industry average of 8.69%.
| 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 97.67% of its industry peers.
MDU's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 10.26%, MDU belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
In the last couple of years the Operating Margin of MDU has remained more or less at the same level.
MDU has a better Gross Margin (85.15%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of MDU has declined.
| 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
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 1.39. This is a bad value and indicates that MDU is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.39, MDU is doing worse than 72.09% of the companies in the same industry.
MDU has a debt to FCF ratio of 79.98. This is a negative value and a sign of low solvency as MDU would need 79.98 years to pay back of all of its debts.
MDU has a worse Debt to FCF ratio (79.98) than 62.79% of its industry peers.
MDU has a Debt/Equity ratio of 0.73. This is a neutral value indicating MDU is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.73, MDU perfoms like the industry average, outperforming 41.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 79.98 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.59
WACC9.44%
2.3 Liquidity
MDU has a Current Ratio of 1.21. 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 Current ratio, with a value of 1.21, MDU is doing worse than 74.42% of the companies in the same industry.
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.
With a Quick ratio value of 1.15, MDU is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
MDU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.97%.
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 -30.83%.
MDU shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.55% yearly.
EPS 1Y (TTM)-17.97%
EPS 3Y-2.45%
EPS 5Y5.57%
EPS Q2Q%-50%
Revenue 1Y (TTM)-30.83%
Revenue growth 3Y-5.58%
Revenue growth 5Y0.55%
Sales Q2Q%-4%
3.2 Future
The Earnings Per Share is expected to decrease by -7.19% on average over the next years.
MDU is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.15% yearly.
EPS Next Y-9.1%
EPS Next 2Y-7.91%
EPS Next 3Y-7.19%
EPS Next 5YN/A
Revenue Next Year-4.02%
Revenue Next 2Y-0.41%
Revenue Next 3Y-1.15%
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
Based on the Price/Earnings ratio of 8.67, the valuation of MDU can be described as reasonable.
MDU's Price/Earnings ratio is rather cheap when compared to the industry. MDU is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of MDU to the average of the S&P500 Index (30.20), we can say MDU is valued rather cheaply.
MDU is valuated reasonably with a Price/Forward Earnings ratio of 10.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDU indicates a rather cheap valuation: MDU is cheaper than 97.67% of the companies listed in the same industry.
MDU is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MDU is valued cheaply inside the industry as 95.35% of the companies are valued more expensively.
62.79% of the companies in the same industry are cheaper than MDU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 104.82 | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
MDU has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MDU's earnings are expected to decrease with -7.19% in the coming years.
PEG (NY)N/A
PEG (5Y)1.55
EPS Next 2Y-7.91%
EPS Next 3Y-7.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.80%, MDU has a reasonable but not impressive dividend return.
The stock price of MDU dropped by -36.92% 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 0.76, MDU pays a better dividend. On top of this MDU pays more dividend than 97.67% of the companies listed in the same industry.
MDU's Dividend Yield is slightly below the S&P500 average, which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
The dividend of MDU has a limited annual growth rate of 0.05%.
MDU has paid a dividend for at least 10 years, which is 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-7.91%
EPS Next 3Y-7.19%
MDU RESOURCES GROUP INC
NYSE:MDU (11/4/2024, 8:22:43 PM)
After market: 15.43 0 (0%)15.43
+0.33 (+2.19%)
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 Cap3.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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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 | 8.67 | ||
| Fwd PE | 10.05 | ||
| 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)1.55
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)-17.97%
EPS 3Y-2.45%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-30.83%
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