NYSE:MDU

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has MDU Resources Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

MDU

-0.6%

US Integrated Utilities

1.8%

US Market


1 Year Return

6.0%

MDU

17.8%

US Integrated Utilities

7.3%

US Market

Return vs Industry: MDU underperformed the US Integrated Utilities industry which returned 17.8% over the past year.

Return vs Market: MDU exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

MDUIndustryMarket
7 Day-1.0%-0.6%1.8%
30 Day-1.7%0.9%-0.7%
90 Day5.5%4.4%0.06%
1 Year9.3%6.0%22.0%17.8%9.7%7.3%
3 Year20.1%10.0%45.5%30.9%46.3%36.9%
5 Year17.3%-0.2%72.7%38.5%64.5%46.5%

Price Volatility Vs. Market

How volatile is MDU Resources Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MDU Resources Group undervalued compared to its fair value and its price relative to the market?

18.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MDU ($27.66) is trading above our estimate of fair value ($17.54)

Significantly Undervalued: MDU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MDU is good value based on its PE Ratio (18.9x) compared to the Integrated Utilities industry average (21.5x).

PE vs Market: MDU is poor value based on its PE Ratio (18.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate MDU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MDU is good value based on its PB Ratio (2.1x) compared to the US Integrated Utilities industry average (2.2x).


Next Steps

Future Growth

How is MDU Resources Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MDU's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if MDU's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MDU's revenue (3.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MDU's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if MDU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

10.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MDU's earnings have grown by 10.2% 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 (-1.2%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-11.4%).


Return on Equity

High ROE: MDU's Return on Equity (10.8%) is considered low.


Return on Assets

ROA vs Industry: MDU has a higher Return on Assets than the Integrated Utilities industry average last year.


Return on Capital Employed

ROCE Improving: MDU's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is MDU Resources Group's financial position?


Financial Position Analysis

Short Term Liabilities: MDU's short term assets ($1.4B) exceeds its short term liabilities ($912.6M)

Long Term Liabilities: MDU's short term assets (1.4B) do not cover its long term liabilities (4.0B)


Debt to Equity History and Analysis

Debt Level: MDU's debt to equity ratio (92.8%) is considered high

Reducing Debt: MDU's debt to equity ratio has increased from 71.4% to 92.8% over the past 5 years.

Debt Coverage: MDU's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: MDU's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: MDU has a high level of physical assets or inventory.

Debt Coverage by Assets: MDU's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

2.93%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.5%markettop25%3.7%industryaverage3.2%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MDU's dividend (2.93%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MDU's dividend (2.93%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.1%), MDU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MDU's dividends in 3 years are forecast to be covered by earnings (50% payout ratio).


Next Steps

Management

What is the CEO of MDU Resources Group's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Dave Goodin (57yo)

6.8yrs

Tenure

US$4,124,067

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

Compensation vs. Market: Dave's total compensation ($USD4.12M) is about average for companies of similar size in the US market ($USD6.79M).

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


Management Age and Tenure

3.8yrs

Average Tenure

55yo

Average Age

Experienced Management: MDU's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

65yo

Average Age

Experienced Board: MDU's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$86,82031 May 19
Edward Ryan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$24.81
BuyUS$122,23431 May 19
David Goodin
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceUS$24.45
BuyUS$63,00020 May 19
David Sparby
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$25.20
BuyUS$77,25014 Mar 19
David Sparby
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$25.75

Ownership Breakdown


Management Team

  • Nicole Kivisto (46yo)

    CEO & President of Cascade Natural Gas Corp

    • Tenure: 4.8yrs
    • Compensation: US$1.30m
  • Jeffrey Thiede (57yo)

    president & CEO of MDU Construction Services Group

    • Tenure: 6.5yrs
    • Compensation: US$1.97m
  • Dave Goodin (57yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$4.12m
  • Dave Barney (63yo)

    President & CEO of Knife River Corporation

    • Tenure: 6.5yrs
    • Compensation: US$2.03m
  • Jason Vollmer (42yo)

    VP, CFO & Treasurer

    • Tenure: 2.1yrs
    • Compensation: US$1.13m
  • Anne Jones (55yo)

    Vice President of Human Resources

    • Tenure: 3.8yrs
  • Peggy Link (52yo)

    VP & chief information officer

    • Tenure: 3.8yrs
  • Dan Kuntz (65yo)

    VP, General Counsel & Secretary

    • Tenure: 3.8yrs
  • Stephanie Barth (47yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 2.1yrs
  • Emily Lear

    Financial Analyst II - Investor Relations

    • Tenure: 0yrs

Board Members

  • Dave Sparby (64yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$75.03k
  • Mark Hellerstein (66yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$180.08k
  • Patti Moss (65yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$180.08k
  • Tom Everist (69yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$190.08k
  • Dennis Johnson (70yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$195.08k
  • Karen Fagg (65yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$190.58k
  • John Wilson (64yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$180.08k
  • Ed Ryan (65yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$30.01k
  • Dave Goodin (57yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$4.12m
  • Chenxi Wang (49yo)

    Independent Director

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: MDU Resources Group, Inc.
  • Ticker: MDU
  • Exchange: NYSE
  • Founded: 1924
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$5.506b
  • Shares outstanding: 199.06m
  • Website: https://www.mdu.com

Number of Employees


Location

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

Listings

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

Biography

MDU Resources Group, Inc. engages in regulated energy delivery, and construction materials and services businesses in the United States. It operates through five segments: Electric, Natural Gas Distributio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:38
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.