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. MDU has a medium profitability rating, but doesn't score so well on its financial health evaluation. MDU has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MDU had positive earnings in the past year.
In the past year MDU had a positive cash flow from operations.
MDU had positive earnings in each of the past 5 years.
MDU had a positive operating cash flow in each of the past 5 years.
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.
MDU's Return On Equity of 10.45% is in line compared to the rest of the industry. MDU outperforms 57.14% of its industry peers.
MDU has a Return On Invested Capital (5.10%) which is in line with 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 last Return On Invested Capital (5.10%) for MDU is above the 3 year average (3.80%), which is a sign of increasing profitability.
| 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
MDU has a Profit Margin (7.31%) which is comparable to the rest of the industry.
MDU's Profit Margin has improved in the last couple of years.
The Operating Margin of MDU (10.68%) is worse than 78.57% of its industry peers.
MDU's Operating Margin has improved in the last couple of years.
The Gross Margin of MDU (77.52%) is better 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.
Compared to 1 year ago, MDU has about the same amount of shares outstanding.
MDU has more shares outstanding than it did 5 years ago.
MDU has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that MDU is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.41, MDU is in the better half of the industry, outperforming 78.57% 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.
MDU has a better Debt to Equity ratio (0.79) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.41 |
ROIC/WACC0.74
WACC6.93%
2.3 Liquidity
A Current Ratio of 0.98 indicates that MDU may have some problems paying its short term obligations.
MDU's Current ratio of 0.98 is amongst the best of the industry. MDU outperforms 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.
With an excellent Quick ratio value of 0.92, MDU belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for MDU have decreased strongly by -20.99% in the last year.
Measured over the past years, MDU shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.17% on average per year.
The Revenue for MDU has decreased by -17.39% in the past year. This is quite bad
The Revenue for MDU have been decreasing by -19.92% on average. This is quite bad
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
MDU is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.50% yearly.
The Revenue is expected to decrease by -14.55% on average over the next years. This is quite bad
EPS Next Y-32.76%
EPS Next 2Y-15.31%
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-14.55%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 11.72, the valuation of MDU can be described as very reasonable.
92.86% of the companies in the same industry are more expensive than MDU, based on the Price/Earnings ratio.
MDU is valuated cheaply when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.43 indicates a rather expensive valuation of MDU.
MDU's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.37. MDU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
MDU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MDU is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.25 |
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-15.31%
EPS Next 3Y-8.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.10%, MDU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.86, MDU is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.51, MDU pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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
MDU pays out 36.61% of its income as dividend. This is a 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.
DP36.61%
EPS Next 2Y-15.31%
EPS Next 3Y-8.5%
16.76
+0.36 (+2.2%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.51%
Inst Owner Change-0.27%
Ins Owners0.3%
Ins Owner Change1.8%
Market Cap3.42B
Analysts82.22
Price Target20.15 (20.23%)
Short Float %2.71%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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)0%
PT rev (3m)-5.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)0.28%
EPS NY rev (3m)-1.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 17.43 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | 6.82 | ||
| P/B | 1.27 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 9.25 |
EPS(TTM)1.43
EY8.53%
EPS(NY)0.96
Fwd EY5.74%
FCF(TTM)-0.1
FCFYN/A
OCF(TTM)2.46
OCFY14.67%
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
WACC6.93%
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-32.76%
EPS Next 2Y-15.31%
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-14.55%
EBIT growth 1Y-3.5%
EBIT growth 3Y-20.77%
EBIT growth 5Y-11.2%
EBIT Next Year40.16%
EBIT Next 3Y13.49%
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%