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.

Risks

  • MDU Resources Group is covered by less than 3 analysts.

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

3.0%

NYSE:MDU

0.3%

US Integrated Utilities

1.3%

US Market


1 Year Return

3.8%

NYSE:MDU

14.7%

US Integrated Utilities

2.0%

US Market

MDU underperformed the Integrated Utilities industry which returned 14.7% over the past year.

MDU outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

MDUIndustryMarket
7 Day3.0%0.3%1.3%
30 Day5.2%1.9%3.9%
90 Day9.2%2.8%3.4%
1 Year7.0%3.8%18.7%14.7%4.2%2.0%
3 Year29.2%18.3%40.0%26.0%47.2%37.6%
5 Year14.8%-2.3%74.9%40.4%60.5%42.9%

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 based on future cash flows and its price relative to the stock market?

19.22x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

MDU Resources Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

MDU Resources Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

MDU Resources Group is good value based on earnings compared to the US Integrated Utilities industry average.

MDU Resources Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for MDU Resources Group, we can't assess if its growth is good value.


Price Based on Value of Assets

MDU Resources Group is good value based on assets compared to the US Integrated Utilities industry average.


Next Steps

Future Growth

How is MDU Resources Group expected 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 Estimates


Future Annual Growth Analysis

MDU Resources Group's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

Unable to determine if MDU Resources Group is high growth as no earnings estimate data is available.

MDU Resources Group's revenue growth is positive but not above the United States of America market average.

Unable to compare MDU Resources Group's earnings growth to the United States of America market average as no estimate data is available.

Unable to compare MDU Resources Group's earnings growth to the low risk savings rate as no estimate data is available.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if MDU Resources Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

MDU Resources Group's year on year earnings growth rate has been positive over the past 5 years.

MDU Resources Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

MDU Resources Group's 1-year earnings growth is negative, it can't be compared to the US Integrated Utilities industry average.


Return on Equity

MDU Resources Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

MDU Resources Group used its assets more efficiently than the US Integrated Utilities industry average last year based on Return on Assets.


Return on Capital Employed

MDU Resources Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is MDU Resources Group's financial position?


Financial Position Analysis

MDU Resources Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

MDU Resources Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

MDU Resources Group's level of debt (92.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (71.4% vs 92.8% today).

Debt is not well covered by operating cash flow (12.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.97%

Expected Dividend Yield


Dividend Yield and Payments Analysis

MDU Resources Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

MDU Resources Group's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


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?

3.7yrs

Average management tenure


CEO

Dave Goodin (57yo)

6.7yrs

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

Dave's remuneration is lower than average for companies of similar size in United States of America.

Dave's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

55yo

Average Age

The tenure for the MDU Resources Group management team is about average.


Board Age and Tenure

6.7yrs

Average Tenure

65yo

Average Age

The tenure for the MDU Resources Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 4.7yrs
    • Compensation: US$1.30m
  • Jeffrey Thiede (57yo)

    president & CEO of MDU Construction Services Group

    • Tenure: 7.7yrs
    • Compensation: US$1.97m
  • Dave Goodin (57yo)

    President

    • Tenure: 6.7yrs
    • Compensation: US$4.12m
  • Dave Barney (63yo)

    President & CEO of Knife River Corporation

    • Tenure: 7.7yrs
    • Compensation: US$2.03m
  • Jason Vollmer (42yo)

    VP, CFO & Treasurer

    • Tenure: 2yrs
    • Compensation: US$1.13m
  • Anne Jones (55yo)

    Vice President of Human Resources

    • Tenure: 3.7yrs
  • Peggy Link (52yo)

    VP & chief information officer

    • Tenure: 3.7yrs
  • Dan Kuntz (65yo)

    VP, General Counsel & Secretary

    • Tenure: 3.7yrs
  • Stephanie Barth (47yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 2yrs
  • Emily Lear

    Financial Analyst II - Investor Relations

    • Tenure: 0yrs

Board Members

  • Dave Sparby (64yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$75.03k
  • Mark Hellerstein (66yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$180.08k
  • Patti Moss (65yo)

    Independent Director

    • Tenure: 16.7yrs
    • Compensation: US$180.08k
  • Tom Everist (69yo)

    Independent Director

    • Tenure: 24.7yrs
    • Compensation: US$190.08k
  • Dennis Johnson (70yo)

    Chairman of the Board

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

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$190.58k
  • John Wilson (64yo)

    Independent Director

    • Tenure: 16.7yrs
    • Compensation: US$180.08k
  • Ed Ryan (65yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$30.01k
  • Dave Goodin (57yo)

    President

    • Tenure: 6.7yrs
    • Compensation: US$4.12m
  • Chenxi Wang (49yo)

    Independent Director

    • Tenure: 0.3yrs

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$5.596b
  • 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 Analysis2019/09/15 23:39
End of Day Share Price2019/09/13 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.