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MDU

MDU Resources Group NYSE:MDU Stock Report

Last Price

US$27.35

Market Cap

US$5.6b

7D

-3.2%

1Y

-9.7%

Updated

01 Oct, 2022

Data

Company Financials +
MDU fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance2/6
Financial Health2/6
Dividends4/6

MDU Stock Overview

MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States.

MDU Resources Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MDU Resources Group
Historical stock prices
Current Share PriceUS$27.35
52 Week HighUS$32.19
52 Week LowUS$24.92
Beta0.73
1 Month Change-9.59%
3 Month Change-1.16%
1 Year Change-9.74%
3 Year Change-2.25%
5 Year Change2.82%
Change since IPO511.98%

Recent News & Updates

Sep 20
Returns On Capital At MDU Resources Group (NYSE:MDU) Have Hit The Brakes

Returns On Capital At MDU Resources Group (NYSE:MDU) Have Hit The Brakes

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Ideally, a...

Aug 15
MDU Resources Group (NYSE:MDU) Has Affirmed Its Dividend Of $0.2175

MDU Resources Group (NYSE:MDU) Has Affirmed Its Dividend Of $0.2175

MDU Resources Group, Inc. ( NYSE:MDU ) has announced that it will pay a dividend of $0.2175 per share on the 1st of...

Aug 12

MDU Resources declares $0.2175 dividend

MDU Resources (NYSE:MDU) declares $0.2175/share quarterly dividend, in line with previous. Forward yield 2.82% Payable Oct. 1; for shareholders of record Sept. 8; ex-div Sept. 7. See MDU Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

MDUUS ConstructionUS Market
7D-3.2%-1.0%-2.5%
1Y-9.7%-1.2%-23.2%

Return vs Industry: MDU underperformed the US Construction industry which returned -1.2% over the past year.

Return vs Market: MDU exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is MDU's price volatile compared to industry and market?
MDU volatility
MDU Average Weekly Movement3.3%
Construction Industry Average Movement5.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: MDU is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MDU's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192416,000Dave Goodinhttps://www.mdu.com

MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States. The company’s Electric segment generates, transmits, and distributes electricity for residential, commercial, industrial, and municipal customers in Montana, North Dakota, South Dakota, and Wyoming, as well as operates 3,500 miles of transmission lines and 4,800 miles of distribution lines. Its Natural Gas Distribution segment distributes natural gas for residential, commercial, and industrial customers in Idaho, Minnesota, Montana, North Dakota, Oregon, South Dakota, Washington, and Wyoming; and offers supply-related value-added services.

MDU Resources Group Fundamentals Summary

How do MDU Resources Group's earnings and revenue compare to its market cap?
MDU fundamental statistics
Market CapUS$5.56b
Earnings (TTM)US$327.81m
Revenue (TTM)US$6.17b

17.0x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MDU income statement (TTM)
RevenueUS$6.17b
Cost of RevenueUS$5.13b
Gross ProfitUS$1.04b
Other ExpensesUS$712.94m
EarningsUS$327.81m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.61
Gross Margin16.88%
Net Profit Margin5.32%
Debt/Equity Ratio89.4%

How did MDU perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

54%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MDU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MDU?

Other financial metrics that can be useful for relative valuation.

MDU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA10.5x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does MDU's PE Ratio compare to its peers?

MDU PE Ratio vs Peers
The above table shows the PE ratio for MDU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.4x
EME EMCOR Group
15.2x10.4%US$5.7b
MTZ MasTec
27.8x59.1%US$4.7b
VMI Valmont Industries
26.4x17.2%US$5.7b
FIX Comfort Systems USA
16.3x-0.4%US$3.5b
MDU MDU Resources Group
17x15.1%US$5.6b

Price-To-Earnings vs Peers: MDU is good value based on its Price-To-Earnings Ratio (17x) compared to the peer average (21.4x).


Price to Earnings Ratio vs Industry

How does MDU's PE Ratio compare vs other companies in the US Construction Industry?

Price-To-Earnings vs Industry: MDU is good value based on its Price-To-Earnings Ratio (17x) compared to the US Construction industry average (25.9x)


Price to Earnings Ratio vs Fair Ratio

What is MDU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MDU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17x
Fair PE Ratio20.4x

Price-To-Earnings vs Fair Ratio: MDU is good value based on its Price-To-Earnings Ratio (17x) compared to the estimated Fair Price-To-Earnings Ratio (20.4x).


Share Price vs Fair Value

What is the Fair Price of MDU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MDU ($27.35) is trading below our estimate of fair value ($68.91)

Significantly Below Fair Value: MDU is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is MDU Resources Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDU's forecast earnings growth (15.1% per year) is above the savings rate (1.9%).

Earnings vs Market: MDU's earnings (15.1% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: MDU's earnings are forecast to grow, but not significantly.

Revenue vs Market: MDU's revenue (2.1% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: MDU's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MDU's Return on Equity is forecast to be low in 3 years time (11.8%).


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Past Performance

How has MDU Resources Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MDU has high quality earnings.

Growing Profit Margin: MDU's current net profit margins (5.3%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: MDU's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: MDU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MDU had negative earnings growth (-21.5%) over the past year, making it difficult to compare to the Construction industry average (16.7%).


Return on Equity

High ROE: MDU's Return on Equity (9.7%) is considered low.


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Financial Health

How is MDU Resources Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MDU's short term assets ($1.9B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: MDU's short term assets ($1.9B) do not cover its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: MDU's net debt to equity ratio (87.5%) is considered high.

Reducing Debt: MDU's debt to equity ratio has increased from 76.5% to 89.4% over the past 5 years.

Debt Coverage: MDU's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: MDU's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


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Dividend

What is MDU Resources Group current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.18%

Current Dividend Yield

Dividend Yield vs Market

MDU Resources Group Dividend Yield vs Market
How does MDU Resources Group dividend yield compare to the market?
SegmentDividend Yield
Company (MDU Resources Group)3.2%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Construction)0.9%
Analyst forecast in 3 Years (MDU Resources Group)3.3%

Notable Dividend: MDU's dividend (3.18%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: MDU's dividend (3.18%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: MDU's dividends per share have been stable in the past 10 years.

Growing Dividend: MDU's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (53.6%), MDU's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: MDU is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

6.7yrs

Average management tenure


CEO

Dave Goodin (60 yo)

9.67yrs

Tenure

US$5,210,467

Compensation

Mr. David L. Goodin, also known as Dave, has been the Chief Executive Officer and President of MDU Resources Group Inc. since January 4, 2013. Mr. Goodin served as the Chief Executive Officer and President...


CEO Compensation Analysis

Dave Goodin's Compensation vs MDU Resources Group Earnings
How has Dave Goodin's remuneration changed compared to MDU Resources Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$328m

Mar 31 2022n/an/a

US$357m

Dec 31 2021US$5mUS$1m

US$378m

Sep 30 2021n/an/a

US$403m

Jun 30 2021n/an/a

US$417m

Mar 31 2021n/an/a

US$417m

Dec 31 2020US$6mUS$960k

US$391m

Sep 30 2020n/an/a

US$373m

Jun 30 2020n/an/a

US$356m

Mar 31 2020n/an/a

US$320m

Dec 31 2019US$6mUS$860k

US$335m

Sep 30 2019n/an/a

US$316m

Jun 30 2019n/an/a

US$288m

Mar 31 2019n/an/a

US$269m

Dec 31 2018US$4mUS$824k

US$269m

Sep 30 2018n/an/a

US$309m

Jun 30 2018n/an/a

US$291m

Mar 31 2018n/an/a

US$291m

Dec 31 2017US$4mUS$793k

US$284m

Sep 30 2017n/an/a

US$235m

Jun 30 2017n/an/a

US$234m

Mar 31 2017n/an/a

US$236m

Dec 31 2016US$4mUS$755k

US$232m

Sep 30 2016n/an/a

US$222m

Jun 30 2016n/an/a

US$207m

Mar 31 2016n/an/a

US$187m

Dec 31 2015US$3mUS$755k

US$176m

Compensation vs Market: Dave's total compensation ($USD5.21M) is below average for companies of similar size in the US market ($USD8.67M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MDU's management team is seasoned and experienced (6.7 years average tenure).


Board Members

Experienced Board: MDU's board of directors are considered experienced (9.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:MDU Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
26 Jul 22BuyUS$100,972,977Corvex Management LPCompany3,649,186US$27.67

Ownership Breakdown

What is the ownership structure of MDU?
Owner TypeNumber of SharesOwnership Percentage
State or Government85,4460.04%
Individual Insiders1,969,5251.0%
General Public52,694,79925.9%
Institutions148,600,97073.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 56.32% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.55%
The Vanguard Group, Inc.
21,458,536$586.9m0.2%0.01%
9.15%
BlackRock, Inc.
18,614,022$509.1m4.28%0.01%
8.94%
State Street Global Advisors, Inc.
18,179,599$497.2m17.53%0.03%
4.99%
Corvex Management LP
10,147,041$277.5m16.25%14.87%
2.41%
Dimensional Fund Advisors LP
4,898,247$134.0m9.29%0.03%
2.16%
Franklin Resources, Inc.
4,400,000$120.3m99.51%0.05%
1.99%
LSV Asset Management
4,045,301$110.6m-30.01%0.23%
1.75%
Barrow, Hanley, Mewhinney & Strauss, LLC
3,562,251$97.4m137.68%0.37%
1.58%
BNY Mellon Asset Management
3,221,958$88.1m28.54%0.02%
1.39%
Geode Capital Management, LLC
2,834,980$77.5m7.72%0.01%
1.08%
Electron Capital Partners, LLC
2,190,489$59.9m0%2.86%
0.99%
Norges Bank Investment Management
2,019,389$55.2m0%0.01%
0.91%
River Road Asset Management, LLC
1,852,367$50.7m0%0.74%
0.88%
Charles Schwab Investment Management, Inc.
1,784,011$48.8m-0.22%0.01%
0.87%
U.S. Bancorp Asset Management, Inc.
1,776,699$48.6m-3.63%0.11%
0.85%
DePrince, Race & Zollo, Inc.
1,719,883$47.0m-6.64%1.16%
0.83%
Invesco Capital Management LLC
1,690,198$46.2m6.55%0.04%
0.82%
FMR LLC
1,667,809$45.6m-64.72%no data
0.81%
Northern Trust Global Investments
1,650,550$45.1m6.6%0.01%
0.73%
Old Republic International Corp., Asset Management Arm
1,479,500$40.5m0%1.03%
0.64%
Frontier Capital Management Co LLC
1,294,416$35.4m1.2%0.36%
0.6%
First Trust Advisors LP
1,218,073$33.3m42.68%0.04%
0.48%
Mirae Asset Global Investments Co., Ltd
977,759$26.7m-12.15%0.04%
0.46%
Morgan Stanley, Investment Banking and Brokerage Investments
926,547$25.3m-30%0.01%
0.45%
American Beacon Advisors, Inc.
919,401$25.1m-3.24%0.38%

Company Information

MDU Resources Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: MDU Resources Group, Inc.
  • Ticker: MDU
  • Exchange: NYSE
  • Founded: 1924
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: US$5.562b
  • Shares outstanding: 203.35m
  • Website: https://www.mdu.com

Number of Employees


Location

  • MDU Resources Group, Inc.
  • 1200 West Century Avenue
  • PO Box 5650
  • Bismarck
  • North Dakota
  • 58506-5650
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDUNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
MREDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.