Mdu Resources Group (MDU) AI Stock Analysis

• Market Cap: $4.27B
• Dividend Yield: 2.54%
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.67
• Revenue Growth: -57.80%
• EPS Growth: -57.40%
• Country: US
• Employees: 2,052
• Sector: Utilities
• Sector Strength: 65
• Industry: Conglomerates
• EPS (TTM): 0.09
• Shares Outstanding: 204,331,180
• 10 Day Avg. Volume: 3,033,393
• 30 Day Avg. Volume: 2,869,916
• PEG Ratio: -0.40
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 2.09
• P/FCF Ratio: -179.15
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: -27.88
• Enterprise Value/Gross Profit: 14.22
• Enterprise Value/Ebitda: 17.40
• 1Y Price Target: $21.00
• Price Target Upside: -0.47% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.94
• Revenue Forecast (FY): $1.93B

• Rating: 62 Neutral
• Price Target: $22.50 ▲(6.64% Upside)

MDU Resources Group's stock score is primarily influenced by its financial performance, which shows volatility and inconsistency. Technical analysis indicates a strong upward trend, but overbought signals suggest caution. Valuation metrics are moderate, and the earnings call provides a mixed outlook with some positive guidance adjustments. The absence of significant corporate events leaves the focus on stabilizing financial performance and maintaining technical momentum.

Positive Factors

Pipeline Segment Performance

The strong performance of the pipeline segment highlights its importance as a growth driver, benefiting from increased transportation revenue and supporting the company's long-term earnings potential.

Utility Customer Growth

Consistent customer growth in the utility segment aligns with strategic targets, ensuring stable revenue streams and supporting future expansion in regulated markets.

Electric Segment Investment Approval

The investment in renewable energy infrastructure strengthens MDU's position in sustainable energy, enhancing its competitive edge and aligning with industry trends towards cleaner energy.

Negative Factors

Revenue Volatility

Revenue volatility poses a risk to financial stability, highlighting the need for MDU to stabilize its income streams to ensure consistent profitability and investor confidence.

Increased Operating Costs

Rising operating costs can erode margins and profitability, necessitating cost management strategies to maintain financial health and competitive positioning.

Cash Flow Inconsistency

Inconsistent cash flow generation can limit MDU's ability to fund operations and growth initiatives, emphasizing the need for improved cash management practices.

Mdu Resources Group Business Overview & Revenue Model

Company Description

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. The company's Pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions; and cathodic protection and other energy-related services. Its Construction Materials and Contracting segment mines, processes, and sells construction aggregates; produces and sells asphalt mix; and supplies ready-mixed concrete. This segment is also involved in the sale of cement, finished concrete products, and other building materials and related contracting services. The company's Construction Services segment designs, constructs, and maintains electrical and communication wiring and infrastructure, fire suppression systems, mechanical piping and services; overhead and underground electrical, gas, and communication infrastructure; and manufactures and distributes transmission lines construction equipment. It serves manufacturing, commercial, industrial, transportation, institutional, and renewable and government customers, as well as utilities. The company was founded in 1924 and is headquartered in Bismarck, North Dakota.

How the Company Makes Money

MDU Resources generates revenue through several key streams. The utility operations segment earns revenue primarily from the sale of electric and natural gas services to consumers, which is regulated and provides stable cash flow. The pipeline and energy services segment contributes through transportation and storage of natural gas and other energy resources, capitalizing on the growing demand for energy infrastructure. Additionally, the construction materials and contract construction segments earn revenue through projects related to infrastructure development, including road, bridge, and utility construction, as well as the sale of aggregate and concrete products. Significant partnerships with various governmental and private entities enhance MDU's ability to secure contracts and expand its service offerings, thereby contributing to its overall earnings. The company's focus on sustainable energy solutions and infrastructure development positions it favorably in the growing energy market.

Mdu Resources Group Financial Statement Overview

Summary

MDU Resources Group shows strong profitability margins with a gross profit margin of 74.50% and a net profit margin of 41.24%. However, the significant decline in revenue (-57.13%) poses a risk to future profitability. The balance sheet is stable with moderate leverage, but the return on equity is relatively low. Cash flow generation has improved, but the conversion of profits to cash remains a concern.

Income Statement

The income statement shows a significant decline in revenue over the TTM period, with a revenue growth rate of -57.13%. Despite this, the company maintains strong profitability metrics, with a gross profit margin of 74.50% and a net profit margin of 41.24% in the TTM. However, the declining revenue trend poses a risk to future profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.80, indicating a balanced approach to leverage. The return on equity is relatively low at 7.68% in the TTM, suggesting limited efficiency in generating returns from equity. The equity ratio stands at 39.32%, showing a stable capital structure.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 28.60% in the TTM, indicating improved cash generation. However, the free cash flow to net income ratio is low at 0.15, suggesting limited cash conversion from profits. The operating cash flow to net income ratio is healthy at 0.90, reflecting good cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-212.79M	1.76B	1.80B	1.75B	3.45B	5.53B
Gross Profit	417.39M	571.94M	518.53M	490.06M	687.28M	1.05B
EBITDA	340.96M	507.09M	635.40M	392.69M	555.01M	856.74M
Net Income	169.30M	281.11M	414.71M	367.49M	378.13M	390.20M
Balance Sheet
Total Assets	7.19B	7.04B	7.83B	9.66B	8.91B	8.05B
Cash, Cash Equivalents and Short-Term Investments	75.85M	50.20M	48.88M	34.83M	54.16M	59.55M
Total Debt	2.35B	2.29B	2.49B	2.48B	2.87B	2.38B
Total Liabilities	4.46B	4.35B	4.93B	6.07B	5.53B	4.97B
Stockholders Equity	2.72B	2.69B	2.91B	3.59B	3.38B	3.08B
Cash Flow
Free Cash Flow	331.50M	-20.51M	-187.10M	-146.59M	-163.63M	210.39M
Operating Cash Flow	453.33M	502.32M	332.63M	510.00M	495.80M	768.40M
Investing Cash Flow	-520.08M	-552.68M	-540.79M	-638.90M	-885.90M	-630.20M
Financing Cash Flow	38.63M	40.30M	204.62M	155.20M	384.71M	-145.10M

Mdu Resources Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDU, the sentiment is Positive. The current price of 21.1 is above the 20-day moving average (MA) of 19.67, above the 50-day MA of 18.09, and above the 200-day MA of 16.97, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 79.32 is Negative, neither overbought nor oversold. The STOCH value of 93.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MDU.

Mdu Resources Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	78 Outperform	$8.03B	35.09	14.90%	0.63%	1.23%	-22.77%
SEB	75 Outperform	$3.55B	9.03	8.36%	0.24%	10.31%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
MDU	62 Neutral	$4.27B	25.31	6.42%	2.54%	-57.80%	-57.40%
CODI	53 Neutral	$447.65M	―	―	16.72%	6.77%	9.95%
FIP	52 Neutral	$590.78M	-2.11	-13.99%	1.69%	32.39%	-19.35%
IEP	51 Neutral	$5.31B	―	-12.71%	22.65%	-8.45%	27.66%

Mdu Resources Group Corporate Events

MDU Resources Reports Strong Pipeline Earnings in Q3 2025

MDU Resources Group Inc., a member of the S&P SmallCap 600 index, provides electric utility and natural gas distribution services across the Pacific Northwest and Midwest, along with operating a substantial natural gas pipeline network.

Mdu Res Earnings Call: Mixed Sentiment and Future Optimism

The recent earnings call for Mdu Res presented a mixed sentiment, highlighting both achievements and challenges faced by the company. While there was notable income growth and impressive pipeline performance, increased operating costs and declines in certain utility sectors were also evident. However, the positive adjustments to the EPS guidance reflect the company’s confidence in overcoming these hurdles.

Mdu Resources Group Releases Investor Presentation

Mdu Resources Group has released an Investor Presentation and Infographic, which are accessible on the company’s corporate website under the ‘Investor Relations’ section. The information provided in these documents is not considered part of the company’s official filings with the U.S. Securities and Exchange Commission and is not subject to the liabilities of the Exchange Act.

The most recent analyst rating on (MDU) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Mdu Resources Group stock, see the MDU Stock Forecast page.

MDU Resources Expands Board with New Appointments

On August 12, 2025, MDU Resources Group’s Board of Directors expanded to nine members, appointing Charles M. Kelley and Tammy J. Miller as independent directors. Kelley, with extensive experience in the natural gas industry, and Miller, a former North Dakota lieutenant governor and business leader, will serve on the Audit Committee. Their appointments are expected to enhance MDU’s strategic growth in natural gas infrastructure and align with its mission to deliver reliable energy services.

The most recent analyst rating on (MDU) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Mdu Resources Group stock, see the MDU Stock Forecast page.

MDU Resources Earnings Call: Mixed Outlook with Growth Potential

The recent earnings call for MDU Resources presented a mixed outlook, highlighting both challenges and growth opportunities. While the company is poised for strong growth in its pipeline and utility segments, current financial performance has been hampered by increased operating costs and weather-related issues. This has led to a revision of the earnings guidance, reflecting the complexities of the current economic environment.