MDU RESOURCES GROUP INC (MDU)
US5526901096 - Common Stock
Overall MDU gets a fundamental rating of 4 out of 10. We evaluated MDU against 14 industry peers in the Gas Utilities industry. MDU has only an average score on both its financial health and profitability. 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.
MDU had a positive operating cash flow in the past year.
Each year in the past 5 years MDU has been profitable.
MDU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MDU has a Return On Assets of 4.85%. This is amongst the best in the industry. MDU outperforms 85.71% of its industry peers.
MDU's Return On Equity of 12.97% is fine compared to the rest of the industry. MDU outperforms 78.57% of its industry peers.
MDU has a Return On Invested Capital (5.59%) which is in line with its industry peers.
MDU had an Average Return On Invested Capital over the past 3 years of 5.62%. This is in line with the industry average of 6.26%.
| 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 has a Profit Margin (8.92%) which is in line with 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.
In the last couple of years the Operating Margin of MDU has remained more or less at the same level.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, MDU has a worse debt to assets ratio.
2.2 Solvency
MDU has an Altman-Z score of 1.43. 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 1.43, MDU belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
MDU has a debt to FCF ratio of 49.67. This is a negative value and a sign of low solvency as MDU would need 49.67 years to pay back of all of its debts.
MDU has a Debt to FCF ratio of 49.67. This is comparable to the rest of the industry: MDU outperforms 57.14% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that 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 | 1.43 |
ROIC/WACC0.77
WACC7.25%
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 better Current ratio (1.15) than 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.
MDU's Quick ratio of 1.07 is amongst the best of the industry. MDU outperforms 100.00% of its industry peers.
| 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.
MDU shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.36%.
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.
MDU is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -27.30% yearly.
EPS Next Y-18.7%
EPS Next 2Y-26.39%
EPS Next 3Y-16.96%
EPS Next 5YN/A
Revenue Next Year-15.36%
Revenue Next 2Y-37.01%
Revenue Next 3Y-27.3%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 10.42, the valuation of MDU can be described as reasonable.
92.86% of the companies in the same industry are more expensive than MDU, based on the Price/Earnings ratio.
MDU's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.48.
A Price/Forward Earnings ratio of 18.28 indicates a rather expensive valuation of MDU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MDU is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, MDU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.42 | ||
| Fwd PE | 18.28 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MDU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.05 | ||
| EV/EBITDA | 8.9 |
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 -16.96% in the coming years.
PEG (NY)N/A
PEG (5Y)1.87
EPS Next 2Y-26.39%
EPS Next 3Y-16.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.90%, MDU has a reasonable but not impressive dividend return.
In the last 3 months the price of MDU has falen by -37.26%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MDU's Dividend Yield is slightly below the industry average, which is at 4.17.
MDU's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| 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 paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.05%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
25.81% of the earnings are spent on dividend by MDU. This is a low number and sustainable payout ratio.
DP25.81%
EPS Next 2Y-26.39%
EPS Next 3Y-16.96%
MDU RESOURCES GROUP INC
NYSE:MDU (1/6/2025, 4:15:00 PM)
After market: 17.93 0 (0%)17.93
-0.23 (-1.27%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.61%
Inst Owner Change0%
Ins Owners0.41%
Ins Owner Change1.03%
Market Cap3.66B
Analysts85
Price Target21.42 (19.46%)
Short Float %2.22%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)10.53%
PT rev (3m)-21.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-42.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.88%
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 | 10.42 | ||
| Fwd PE | 18.28 | ||
| P/S | 0.82 | ||
| P/FCF | 74.05 | ||
| P/OCF | 6.1 | ||
| P/B | 1.2 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 8.9 |
EPS(TTM)1.72
EY9.59%
EPS(NY)0.98
Fwd EY5.47%
FCF(TTM)0.24
FCFY1.35%
OCF(TTM)2.94
OCFY16.4%
SpS21.81
BVpS15
TBVpS12.6
PEG (NY)N/A
PEG (5Y)1.87
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 | 1.43 |
F-Score6
WACC7.25%
ROIC/WACC0.77
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-18.7%
EPS Next 2Y-26.39%
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-37.01%
Revenue Next 3Y-27.3%
Revenue Next 5YN/A
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%