MDU RESOURCES GROUP INC (MDU) Stock Fundamental Analysis
USA - NYSE:MDU - US5526901096 - Common Stock
19.41 USD
+0.01 (+0.05%)
19.41 USD
0 (0%)
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.
Each year in the past 5 years MDU had a positive operating cash flow.
1.2 Ratios
MDU has a Return On Assets (3.10%) which is in line with its industry peers.
The Return On Equity of MDU (7.89%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 4.09%, MDU is doing worse than 78.57% 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 6.32%.
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
With a Profit Margin value of 8.25%, MDU perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
MDU's Profit Margin has improved in the last couple of years.
MDU's Operating Margin of 12.58% is on the low side compared to the rest of the industry. MDU is outperformed by 78.57% of its industry peers.
In the last couple of years the Operating Margin of MDU has grown nicely.
MDU has a better Gross Margin (69.69%) than 71.43% of its industry peers.
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
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.
The number of shares outstanding for MDU has been increased compared to 5 years ago.
The debt/assets ratio for MDU is higher compared to a year ago.
2.2 Solvency
MDU has an Altman-Z score of 1.29. This is a bad value and indicates that MDU is not financially healthy and even has some risk of bankruptcy.
MDU has a better Altman-Z score (1.29) than 64.29% of its industry peers.
MDU has a debt to FCF ratio of 26.52. This is a negative value and a sign of low solvency as MDU would need 26.52 years to pay back of all of its debts.
MDU has a Debt to FCF ratio (26.52) which is comparable to the rest of the industry.
MDU has a Debt/Equity ratio of 0.75. This is a neutral value indicating MDU is somewhat dependend on debt financing.
MDU has a better Debt to Equity ratio (0.75) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 26.52 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.59
WACC6.94%
2.3 Liquidity
A Current Ratio of 0.74 indicates that MDU may have some problems paying its short term obligations.
The Current ratio of MDU (0.74) is better than 71.43% of its industry peers.
A Quick Ratio of 0.71 indicates that MDU may have some problems paying its short term obligations.
The Quick ratio of MDU (0.71) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The earnings per share for MDU have decreased strongly by -40.45% 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.
MDU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -40.60%.
Measured over the past years, MDU shows a very negative growth in Revenue. The Revenue has been decreasing by -19.92% on average per year.
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 -1.84% yearly.
The Revenue is expected to decrease by -14.42% on average over the next years. This is quite bad
EPS Next Y-33.44%
EPS Next 2Y-15.01%
EPS Next 3Y-7.74%
EPS Next 5Y-1.84%
Revenue Next Year-53.7%
Revenue Next 2Y-30.92%
Revenue Next 3Y-20.91%
Revenue Next 5Y-14.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 18.31, MDU is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of MDU is on the same level as its industry peers.
MDU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.03.
With a Price/Forward Earnings ratio of 18.79, MDU is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MDU is valued a bit more expensive than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, MDU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
MDU's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MDU is more expensive than 71.43% of the companies in the same industry.
MDU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.2 | ||
| EV/EBITDA | 11.7 |
4.3 Compensation for Growth
A cheap valuation may be justified as MDU's earnings are expected to decrease with -7.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.01%
EPS Next 3Y-7.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.88%, MDU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.87, MDU is paying slightly less dividend.
MDU's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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 48.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of MDU has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP48.53%
EPS Next 2Y-15.01%
EPS Next 3Y-7.74%
19.41
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners81.28%
Inst Owner Change-2.63%
Ins Owners0.43%
Ins Owner Change0.34%
Market Cap3.97B
Revenue(TTM)2.61B
Net Income(TTM)215.56M
Analysts86.67
Price Target21.01 (8.24%)
Short Float %4.79%
Short Ratio4.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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)5.64%
PT rev (3m)5.64%
EPS NQ rev (1m)-8.93%
EPS NQ rev (3m)-17.05%
EPS NY rev (1m)-1.72%
EPS NY rev (3m)-2.11%
Revenue NQ rev (1m)15.56%
Revenue NQ rev (3m)15.56%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 18.79 | ||
| P/S | 1.52 | ||
| P/FCF | 48.2 | ||
| P/OCF | 7.4 | ||
| P/B | 1.45 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 11.7 |
EPS(TTM)1.06
EY5.46%
EPS(NY)1.03
Fwd EY5.32%
FCF(TTM)0.4
FCFY2.07%
OCF(TTM)2.62
OCFY13.51%
SpS12.78
BVpS13.37
TBVpS11.68
PEG (NY)N/A
PEG (5Y)N/A
Graham Number17.86
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%
ROICexgc growth 3Y-16.45%
ROICexgc 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 | 1.29 |
F-Score3
WACC6.94%
ROIC/WACC0.59
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-33.44%
EPS Next 2Y-15.01%
EPS Next 3Y-7.74%
EPS Next 5Y-1.84%
Revenue 1Y (TTM)-40.6%
Revenue growth 3Y-32.36%
Revenue growth 5Y-19.92%
Sales Q2Q%-66.47%
Revenue Next Year-53.7%
Revenue Next 2Y-30.92%
Revenue Next 3Y-20.91%
Revenue Next 5Y-14.42%
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%
MDU RESOURCES GROUP INC / MDU FAQ
What is the ChartMill fundamental rating of MDU RESOURCES GROUP INC (MDU) stock?
ChartMill assigns a fundamental rating of 3 / 10 to MDU.
What is the valuation status of MDU RESOURCES GROUP INC (MDU) stock?
ChartMill assigns a valuation rating of 2 / 10 to MDU RESOURCES GROUP INC (MDU). This can be considered as Overvalued.
Can you provide the profitability details for MDU RESOURCES GROUP INC?
MDU RESOURCES GROUP INC (MDU) has a profitability rating of 5 / 10.
How financially healthy is MDU RESOURCES GROUP INC?
The financial health rating of MDU RESOURCES GROUP INC (MDU) is 3 / 10.
Is the dividend of MDU RESOURCES GROUP INC sustainable?
The dividend rating of MDU RESOURCES GROUP INC (MDU) is 3 / 10 and the dividend payout ratio is 48.53%.