NYSE:MDU

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


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

Stable Share Price: MDU is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MDU's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-3.6%

MDU

-1.8%

US Integrated Utilities

0.7%

US Market


1 Year Return

-15.0%

MDU

-3.4%

US Integrated Utilities

22.2%

US Market

Return vs Industry: MDU underperformed the US Integrated Utilities industry which returned -3.3% over the past year.

Return vs Market: MDU underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

MDUIndustryMarket
7 Day-3.6%-1.8%0.7%
30 Day3.7%-0.1%11.8%
90 Day3.2%4.6%8.6%
1 Year-12.2%-15.0%0.2%-3.4%25.0%22.2%
3 Year-0.5%-9.2%17.9%5.9%49.4%39.5%
5 Year71.1%47.9%74.1%45.9%100.2%78.1%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MDU ($24.96) is trading below our estimate of fair value ($91.1)

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


Price To Earnings Ratio

PE vs Industry: MDU is good value based on its PE Ratio (13.4x) compared to the US Integrated Utilities industry average (19.7x).

PE vs Market: MDU is good value based on its PE Ratio (13.4x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

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 (1.7x) compared to the US Integrated Utilities industry average (1.9x).


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?

2.1%

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 (2.2%).

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 (2.1% per year) is forecast to grow slower than the US market (10.2% 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: 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?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDU has high quality earnings.

Growing Profit Margin: MDU's current net profit margins (6.8%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: MDU's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: MDU's earnings growth over the past year (17.9%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: MDU earnings growth over the past year (17.9%) exceeded the Integrated Utilities industry 5.9%.


Return on Equity

High ROE: MDU's Return on Equity (12.4%) is considered low.


Next Steps

Financial Health

How is MDU Resources Group's financial position?


Financial Position Analysis

Short Term Liabilities: MDU's short term assets ($1.5B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: MDU's short term assets ($1.5B) do not cover its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: MDU's debt to equity ratio (77.8%) is considered high.

Reducing Debt: MDU's debt to equity ratio has reduced from 91.2% to 77.8% over the past 5 years.

Debt Coverage: MDU's debt is well covered by operating cash flow (35%).

Interest Coverage: MDU's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Next Steps

Dividend

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

3.41%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MDU's dividend (3.41%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: MDU's dividend (3.41%) is low compared to the top 25% of dividend payers in the US market (4.14%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.6%), MDU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MDU's dividends in 3 years are forecast to be well covered by earnings (44% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Dave Goodin (58 yo)

7.92yrs

Tenure

US$6,144,355

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 ($USD6.14M) is about average for companies of similar size in the US market ($USD6.94M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Goodin
President7.92yrsUS$6.14m0.14%
$ 7.1m
Jason Vollmer
VP & CFO3.25yrsUS$1.59m0.0083%
$ 414.4k
Nicole Kivisto
CEO & President of Cascade Natural Gas Corp5.92yrsUS$1.97m0.032%
$ 1.6m
David Barney
President & CEO of Knife River Corporation7.67yrsUS$2.43m0.024%
$ 1.2m
Jeffrey Thiede
President & CEO of MDU Construction Services Group7.67yrsUS$2.20m0.024%
$ 1.2m
Stephanie Barth
VP, Chief Accounting Officer & Controller3.25yrsno data0.0019%
$ 94.6k
Margaret Link
VP & Chief Information Officer4.92yrsno data0.014%
$ 690.2k
Emily Lear
Financial Analyst II - Investor Relationsno datano datano data
Daniel Kuntz
VP, General Counsel & Secretary4.92yrsno data0.022%
$ 1.1m
Anne Jones
Vice President of Human Resources4.92yrsno data0.015%
$ 767.8k
Trevor Hastings
President & CEO of WBI Holdings3.17yrsno data0.0092%
$ 459.0k
Dustin Senger
Treasurer0.083yrno datano data

4.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: MDU's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Goodin
President7.92yrsUS$6.14m0.14%
$ 7.1m
David Sparby
Independent Director2.33yrsUS$220.50k0.013%
$ 642.1k
Mark Hellerstein
Independent Director7.33yrsUS$207.43k0.017%
$ 828.8k
Patricia Moss
Independent Director17.92yrsUS$205.83k0.043%
$ 2.1m
Thomas Everist
Independent Director25.92yrsUS$213.00k0.43%
$ 21.7m
Dennis Johnson
Independent Chairman of the Board1.58yrsUS$285.77k0.056%
$ 2.8m
Karen Fagg
Independent Director15.08yrsUS$218.75k0.041%
$ 2.1m
John Wilson
Independent Director17.92yrsUS$214.08k0.069%
$ 3.5m
Edward Ryan
Independent Director2.08yrsUS$216.18k0.013%
$ 626.6k
Chenxi Wang
Independent Director1.58yrsUS$138.80k0.0039%
$ 194.2k

7.6yrs

Average Tenure

66yo

Average Age

Experienced Board: MDU's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MDU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$5.005b
  • Shares outstanding: 200.52m
  • 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

Biography

MDU Resources Group, Inc. engages in regulated energy delivery, and construction materials and services businesses in the United States. The company’s Electric segment generates, transmits, and distributes...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:37
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.