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 is valued correctly, 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.
Each year in the past 5 years MDU has been profitable.
In the past 5 years MDU always reported a positive cash flow from operatings.
1.2 Ratios
MDU's Return On Assets of 3.99% is fine compared to the rest of the industry. MDU outperforms 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 10.45%, MDU is in line with its industry, outperforming 57.14% of the companies in the same industry.
MDU has a Return On Invested Capital of 5.10%. This is comparable to the rest of the industry: MDU outperforms 42.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MDU is below the industry average of 7.78%.
The 3 year average ROIC (3.80%) for MDU is below the current ROIC(5.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 10.45% | ||
| ROIC | 5.1% |
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 (7.31%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MDU has grown nicely.
Looking at the Operating Margin, with a value of 10.68%, MDU is doing worse than 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of MDU has grown nicely.
MDU has a better Gross Margin (77.52%) than 78.57% of its industry peers.
MDU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.68% | ||
| PM (TTM) | 7.31% | ||
| GM | 77.52% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MDU is destroying value.
The number of shares outstanding for MDU remains at a similar level compared to 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 1.41. 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 1.41, MDU belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
MDU has a Debt/Equity ratio of 0.79. This is a neutral value indicating MDU is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.79, MDU belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.41 |
ROIC/WACC0.74
WACC6.87%
2.3 Liquidity
A Current Ratio of 0.98 indicates that MDU may have some problems paying its short term obligations.
The Current ratio of MDU (0.98) is better than 85.71% of its industry peers.
MDU has a Quick Ratio of 0.98. 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 0.92 is amongst the best of the industry. MDU outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
MDU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.99%.
The Earnings Per Share has been decreasing by -3.17% on average over the past years.
The Revenue for MDU has decreased by -17.39% in the past year. This is quite bad
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)-20.99%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-51.79%
Revenue 1Y (TTM)-17.39%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-52.83%
3.2 Future
Based on estimates for the next years, MDU will show a decrease in Earnings Per Share. The EPS will decrease by -8.50% on average per year.
MDU is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -14.40% yearly.
EPS Next Y-32.95%
EPS Next 2Y-15.37%
EPS Next 3Y-8.5%
EPS Next 5YN/A
Revenue Next Year-53.08%
Revenue Next 2Y-30.24%
Revenue Next 3Y-21.36%
Revenue Next 5Y-14.4%
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 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 11.63, which indicates a very decent valuation of MDU.
Based on the Price/Earnings ratio, MDU is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
MDU is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.34, MDU is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as MDU.
The average S&P500 Price/Forward Earnings ratio is at 22.10. MDU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 17.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDU indicates a somewhat cheap valuation: MDU is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.2 |
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 -8.50% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.37%
EPS Next 3Y-8.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.14%, MDU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.93, MDU is paying slightly less dividend.
MDU's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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 36.61% of its income as dividend. This is a sustainable payout ratio.
MDU's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP36.61%
EPS Next 2Y-15.37%
EPS Next 3Y-8.5%
16.63
+0.09 (+0.54%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.51%
Inst Owner Change8.69%
Ins Owners0.3%
Ins Owner Change1.75%
Market Cap3.40B
Analysts82.22
Price Target20.15 (21.17%)
Short Float %2.41%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend0.51
Dividend Growth(5Y)-8.99%
DP36.61%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.6%
Min EPS beat(2)-20.56%
Max EPS beat(2)23.76%
EPS beat(4)3
Avg EPS beat(4)15.23%
Min EPS beat(4)-20.56%
Max EPS beat(4)47.36%
EPS beat(8)7
Avg EPS beat(8)27.34%
EPS beat(12)8
Avg EPS beat(12)13.5%
EPS beat(16)9
Avg EPS beat(16)11.55%
Revenue beat(2)1
Avg Revenue beat(2)-14.51%
Min Revenue beat(2)-32.93%
Max Revenue beat(2)3.91%
Revenue beat(4)1
Avg Revenue beat(4)-10.17%
Min Revenue beat(4)-32.93%
Max Revenue beat(4)3.91%
Revenue beat(8)2
Avg Revenue beat(8)-6.92%
Revenue beat(12)4
Avg Revenue beat(12)-5.4%
Revenue beat(16)5
Avg Revenue beat(16)0.79%
PT rev (1m)-1.25%
PT rev (3m)-5.95%
EPS NQ rev (1m)-0.6%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)-13.95%
EPS NY rev (3m)-1.56%
Revenue NQ rev (1m)8.71%
Revenue NQ rev (3m)8.71%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 17.34 | ||
| P/S | 0.88 | ||
| P/FCF | N/A | ||
| P/OCF | 6.76 | ||
| P/B | 1.26 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)1.43
EY8.6%
EPS(NY)0.96
Fwd EY5.77%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)2.46
OCFY14.78%
SpS18.83
BVpS13.17
TBVpS11.48
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 10.45% | ||
| ROCE | 6.46% | ||
| ROIC | 5.1% | ||
| ROICexc | 5.16% | ||
| ROICexgc | 5.46% | ||
| OM | 10.68% | ||
| PM (TTM) | 7.31% | ||
| GM | 77.52% | ||
| 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%
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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 261.31% | ||
| Cap/Sales | 13.59% | ||
| Interest Coverage | 3.8 | ||
| Cash Conversion | 82.2% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 1.41 |
F-Score3
WACC6.87%
ROIC/WACC0.74
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)-20.99%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-51.79%
EPS Next Y-32.95%
EPS Next 2Y-15.37%
EPS Next 3Y-8.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.39%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-52.83%
Revenue Next Year-53.08%
Revenue Next 2Y-30.24%
Revenue Next 3Y-21.36%
Revenue Next 5Y-14.4%
EBIT growth 1Y-3.5%
EBIT growth 3Y-20.77%
EBIT growth 5Y-11.2%
EBIT Next Year41.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y89.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.02%
OCF growth 3Y0.44%
OCF growth 5Y-1.52%