MDU RESOURCES GROUP INC (MDU) Stock Fundamental Analysis
NYSE:MDU - New York Stock Exchange, Inc. - US5526901096 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MDU. MDU was compared to 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 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.
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
MDU has a Return On Assets of 3.77%. This is in the better half of the industry: MDU outperforms 64.29% of its industry peers.
MDU's Return On Equity of 9.56% is fine compared to the rest of the industry. MDU outperforms 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.84%, MDU is doing worse than 64.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MDU is below the industry average of 6.29%.
The last Return On Invested Capital (4.84%) for MDU is above the 3 year average (3.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 9.56% | ||
| ROIC | 4.84% |
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
With a Profit Margin value of 7.93%, MDU perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
MDU's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.73%, MDU is doing worse than 78.57% of the companies in the same industry.
MDU's Operating Margin has improved in the last couple of years.
MDU has a better Gross Margin (73.07%) than 71.43% of its industry peers.
MDU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.73% | ||
| PM (TTM) | 7.93% | ||
| GM | 73.07% |
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.
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 1.34. This is a bad value and indicates that MDU is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.34, MDU is doing good in the industry, outperforming 64.29% of the companies in the same industry.
MDU has a debt to FCF ratio of 33.73. This is a negative value and a sign of low solvency as MDU would need 33.73 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 33.73, MDU is doing good in the industry, outperforming 64.29% of the companies in the same industry.
MDU has a Debt/Equity ratio of 0.74. This is a neutral value indicating MDU is somewhat dependend on debt financing.
MDU has a Debt to Equity ratio of 0.74. This is amongst the best in the industry. MDU outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 33.73 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.7
WACC6.88%
2.3 Liquidity
MDU has a Current Ratio of 0.85. 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 Current ratio (0.85) which is comparable to the rest of the industry.
A Quick Ratio of 0.82 indicates that MDU may have some problems paying its short term obligations.
MDU's Quick ratio of 0.82 is fine compared to the rest of the industry. MDU outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for MDU have decreased strongly by -37.62% in the last year.
The Earnings Per Share has been decreasing by -3.17% on average over the past years.
MDU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -25.50%.
The Revenue for MDU have been decreasing by -19.92% on average. This is quite bad
EPS 1Y (TTM)-37.62%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-25.5%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-44.4%
3.2 Future
The Earnings Per Share is expected to decrease by -7.50% on average over the next years.
The Revenue is expected to decrease by -14.55% on average over the next years. This is quite bad
EPS Next Y-32.01%
EPS Next 2Y-14.58%
EPS Next 3Y-7.5%
EPS Next 5YN/A
Revenue Next Year-52.62%
Revenue Next 2Y-30.33%
Revenue Next 3Y-21.49%
Revenue Next 5Y-14.55%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.64, MDU is valued correctly.
Based on the Price/Earnings ratio, MDU is valued a bit cheaper than 78.57% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MDU is valued rather cheaply.
The Price/Forward Earnings ratio is 15.87, which indicates a correct valuation of MDU.
MDU's Price/Forward Earnings is on the same level as the industry average.
MDU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 15.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MDU.
The rest of the industry has a similar Price/Free Cash Flow ratio as MDU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.02 | ||
| EV/EBITDA | 9.47 |
4.3 Compensation for Growth
The decent profitability rating of MDU may justify a higher PE ratio.
A cheap valuation may be justified as MDU's earnings are expected to decrease with -7.50% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.58%
EPS Next 3Y-7.5%
5. Dividend
5.1 Amount
MDU has a Yearly Dividend Yield of 3.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.98, MDU is paying slightly less dividend.
MDU's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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
39.49% of the earnings are spent on dividend by MDU. This is a low number and 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.
DP39.49%
EPS Next 2Y-14.58%
EPS Next 3Y-7.5%
16.56
-0.04 (-0.24%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners82.98%
Inst Owner Change0%
Ins Owners0.42%
Ins Owner Change0.93%
Market Cap3.38B
Analysts82.22
Price Target19.64 (18.6%)
Short Float %2.97%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend0.51
Dividend Growth(5Y)-8.99%
DP39.49%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.93%
Min EPS beat(2)-20.56%
Max EPS beat(2)8.7%
EPS beat(4)3
Avg EPS beat(4)14.82%
Min EPS beat(4)-20.56%
Max EPS beat(4)47.36%
EPS beat(8)7
Avg EPS beat(8)26.79%
EPS beat(12)9
Avg EPS beat(12)16.41%
EPS beat(16)9
Avg EPS beat(16)7.74%
Revenue beat(2)1
Avg Revenue beat(2)-15.32%
Min Revenue beat(2)-32.93%
Max Revenue beat(2)2.3%
Revenue beat(4)2
Avg Revenue beat(4)-7.25%
Min Revenue beat(4)-32.93%
Max Revenue beat(4)3.91%
Revenue beat(8)2
Avg Revenue beat(8)-9.69%
Revenue beat(12)4
Avg Revenue beat(12)-5.39%
Revenue beat(16)5
Avg Revenue beat(16)-5.73%
PT rev (1m)-2.53%
PT rev (3m)-2.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.28%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 15.87 | ||
| P/S | 1.02 | ||
| P/FCF | 52.02 | ||
| P/OCF | 6.1 | ||
| P/B | 1.23 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 9.47 |
EPS(TTM)1.31
EY7.91%
EPS(NY)1.04
Fwd EY6.3%
FCF(TTM)0.32
FCFY1.92%
OCF(TTM)2.71
OCFY16.39%
SpS16.19
BVpS13.43
TBVpS11.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 9.56% | ||
| ROCE | 6.13% | ||
| ROIC | 4.84% | ||
| ROICexc | 4.89% | ||
| ROICexgc | 5.18% | ||
| OM | 11.73% | ||
| PM (TTM) | 7.93% | ||
| GM | 73.07% | ||
| FCFM | 1.97% |
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-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 33.73 | ||
| Debt/EBITDA | 3.48 | ||
| Cap/Depr | 250.35% | ||
| Cap/Sales | 14.8% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 95.06% | ||
| Profit Quality | 24.81% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.34 |
F-Score4
WACC6.88%
ROIC/WACC0.7
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)-37.62%
EPS 3Y-8.39%
EPS 5Y-3.17%
EPS Q2Q%-23.08%
EPS Next Y-32.01%
EPS Next 2Y-14.58%
EPS Next 3Y-7.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-25.5%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-44.4%
Revenue Next Year-52.62%
Revenue Next 2Y-30.33%
Revenue Next 3Y-21.49%
Revenue Next 5Y-14.55%
EBIT growth 1Y-12.51%
EBIT growth 3Y-20.77%
EBIT growth 5Y-11.2%
EBIT Next Year40.16%
EBIT Next 3Y13.49%
EBIT Next 5YN/A
FCF growth 1Y121.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y56.65%
OCF growth 3Y0.44%
OCF growth 5Y-1.52%