MDU RESOURCES GROUP INC (MDU) Stock Fundamental Analysis
NYSE:MDU - New York Stock Exchange, Inc. - US5526901096 - Common Stock - Currency: USD
Taking everything into account, MDU scores 4 out of 10 in our fundamental rating. MDU was compared to 14 industry peers in the Gas Utilities industry. MDU has an average financial health and profitability rating. 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.
In the past year MDU had a positive cash flow from operations.
Each year in the past 5 years MDU has been profitable.
Each year in the past 5 years MDU had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MDU (4.85%) is better than 85.71% of its industry peers.
Looking at the Return On Equity, with a value of 12.97%, MDU is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.59%, MDU is in line with its industry, outperforming 50.00% 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 7.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 12.97% | ||
| ROIC | 5.59% |
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 8.92% is in line compared to the rest of the industry. MDU outperforms 57.14% of its industry peers.
In the last couple of years the Profit Margin of MDU has grown nicely.
With a Operating Margin value of 10.28%, MDU is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
MDU's Operating Margin has been stable in the last couple of years.
The Gross Margin of MDU (85.33%) is better than 92.86% of its industry peers.
MDU's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.28% | ||
| PM (TTM) | 8.92% | ||
| GM | 85.33% |
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
MDU has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MDU has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MDU has been increased compared to 5 years ago.
Compared to 1 year ago, MDU has a worse debt to assets ratio.
2.2 Solvency
MDU has an Altman-Z score of 1.42. This is a bad value and indicates that MDU is not financially healthy and even has some risk of bankruptcy.
With an excellent Altman-Z score value of 1.42, MDU belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Debt to FCF ratio of MDU is 49.67, which is on the high side as it means it would take MDU, 49.67 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 49.67, MDU perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
MDU has a Debt/Equity ratio of 0.73. This is a neutral value indicating MDU is somewhat dependend on debt financing.
MDU's Debt to Equity ratio of 0.73 is amongst the best of the industry. MDU outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 49.67 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.78
WACC7.21%
2.3 Liquidity
MDU has a Current 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.
MDU has a Current ratio of 1.15. This is amongst the best in the industry. MDU outperforms 100.00% of its industry peers.
A Quick Ratio of 1.07 indicates that MDU should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.07, MDU belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
MDU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.49%.
The Earnings Per Share has been growing slightly by 5.57% on average over the past years.
Looking at the last year, MDU shows a very negative growth in Revenue. The Revenue has decreased by -17.36% in the last year.
Measured over the past years, MDU shows a small growth in Revenue. The Revenue has been growing by 0.55% on average per year.
EPS 1Y (TTM)-5.49%
EPS 3Y-2.45%
EPS 5Y5.57%
EPS Q2Q%-15.79%
Revenue 1Y (TTM)-17.36%
Revenue growth 3Y-5.58%
Revenue growth 5Y0.55%
Sales Q2Q%4.97%
3.2 Future
MDU is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.96% yearly.
The Revenue is expected to decrease by -14.60% on average over the next years. This is quite bad
EPS Next Y-26.71%
EPS Next 2Y-21.54%
EPS Next 3Y-16.96%
EPS Next 5YN/A
Revenue Next Year-15.36%
Revenue Next 2Y-36.8%
Revenue Next 3Y-26.14%
Revenue Next 5Y-14.6%
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.
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
With a Price/Earnings ratio of 10.46, 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.
The average S&P500 Price/Earnings ratio is at 28.58. MDU is valued rather cheaply when compared to this.
MDU is valuated correctly with a Price/Forward Earnings ratio of 16.14.
MDU's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 95.03, MDU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 16.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MDU is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
MDU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.3 | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
The decent profitability rating of MDU may justify a higher PE ratio.
MDU's earnings are expected to decrease with -16.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.88
EPS Next 2Y-21.54%
EPS Next 3Y-16.96%
5. Dividend
5.1 Amount
MDU has a Yearly Dividend Yield of 2.90%.
MDU's Dividend Yield is slightly below the industry average, which is at 3.89.
MDU's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of MDU has a limited annual growth rate of 0.05%.
MDU has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)0.05%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MDU pays out 25.81% of its income as dividend. This is a sustainable payout ratio.
DP25.81%
EPS Next 2Y-21.54%
EPS Next 3Y-16.96%
MDU RESOURCES GROUP INC
NYSE:MDU (2/5/2025, 8:13:26 PM)
After market: 17.99 0 (0%)17.99
+0.34 (+1.93%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.61%
Inst Owner Change2.04%
Ins Owners0.41%
Ins Owner Change1.05%
Market Cap3.67B
Analysts85
Price Target20.4 (13.4%)
Short Float %2.58%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend0.79
Dividend Growth(5Y)0.05%
DP25.81%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.56%
Min EPS beat(2)23.76%
Max EPS beat(2)47.36%
EPS beat(4)4
Avg EPS beat(4)23.81%
Min EPS beat(4)10.36%
Max EPS beat(4)47.36%
EPS beat(8)8
Avg EPS beat(8)30.89%
EPS beat(12)8
Avg EPS beat(12)13.37%
EPS beat(16)10
Avg EPS beat(16)13.01%
Revenue beat(2)1
Avg Revenue beat(2)0.81%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)3.91%
Revenue beat(4)1
Avg Revenue beat(4)-4.12%
Min Revenue beat(4)-9.35%
Max Revenue beat(4)3.91%
Revenue beat(8)3
Avg Revenue beat(8)0.06%
Revenue beat(12)4
Avg Revenue beat(12)-3.26%
Revenue beat(16)5
Avg Revenue beat(16)-1.84%
PT rev (1m)-4.76%
PT rev (3m)-28.14%
EPS NQ rev (1m)12.88%
EPS NQ rev (3m)-35.54%
EPS NY rev (1m)-9.85%
EPS NY rev (3m)-19.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-35.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 16.14 | ||
| P/S | 0.82 | ||
| P/FCF | 74.3 | ||
| P/OCF | 6.12 | ||
| P/B | 1.2 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)1.72
EY9.56%
EPS(NY)1.11
Fwd EY6.19%
FCF(TTM)0.24
FCFY1.35%
OCF(TTM)2.94
OCFY16.34%
SpS21.81
BVpS15
TBVpS12.6
PEG (NY)N/A
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 12.97% | ||
| ROCE | 6.64% | ||
| ROIC | 5.59% | ||
| ROICexc | 5.68% | ||
| ROICexgc | 6.12% | ||
| OM | 10.28% | ||
| PM (TTM) | 8.92% | ||
| GM | 85.33% | ||
| FCFM | 1.11% |
ROA(3y)4.45%
ROA(5y)4.51%
ROE(3y)11.9%
ROE(5y)12.03%
ROIC(3y)5.62%
ROIC(5y)5.85%
ROICexc(3y)5.67%
ROICexc(5y)5.9%
ROICexgc(3y)6.16%
ROICexgc(5y)6.48%
ROCE(3y)6.72%
ROCE(5y)6.98%
ROICexcg growth 3Y-7.61%
ROICexcg growth 5Y-2.31%
ROICexc growth 3Y-6.52%
ROICexc growth 5Y-1.42%
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%
F-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 49.67 | ||
| Debt/EBITDA | 3.29 | ||
| Cap/Depr | 247.24% | ||
| Cap/Sales | 12.37% | ||
| Interest Coverage | 4.14 | ||
| Cash Conversion | 88.18% | ||
| Profit Quality | 12.45% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.42 |
F-Score6
WACC7.21%
ROIC/WACC0.78
Cap/Depr(3y)221.34%
Cap/Depr(5y)216.95%
Cap/Sales(3y)10.73%
Cap/Sales(5y)10.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.49%
EPS 3Y-2.45%
EPS 5Y5.57%
EPS Q2Q%-15.79%
EPS Next Y-26.71%
EPS Next 2Y-21.54%
EPS Next 3Y-16.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.36%
Revenue growth 3Y-5.58%
Revenue growth 5Y0.55%
Sales Q2Q%4.97%
Revenue Next Year-15.36%
Revenue Next 2Y-36.8%
Revenue Next 3Y-26.14%
Revenue Next 5Y-14.6%
EBIT growth 1Y-0.86%
EBIT growth 3Y-7.88%
EBIT growth 5Y1.18%
EBIT Next Year34.83%
EBIT Next 3Y2.35%
EBIT Next 5YN/A
FCF growth 1Y117.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.49%
OCF growth 3Y-24.35%
OCF growth 5Y-7.82%