Mdu Resources Group (MDU) AI Stock Analysis

• Market Cap: $3.98B
• Dividend Yield: 2.77%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.69
• 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: 204,382,830
• 10 Day Avg. Volume: 2,703,451
• 30 Day Avg. Volume: 2,350,998
• 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: 1.49
• Enterprise Value/Revenue: 3.15
• Enterprise Value/Gross Profit: 9.90
• Enterprise Value/Ebitda: 11.47
• 1Y Price Target: $21.00
• Price Target Upside: 7.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.93
• Revenue Forecast (FY): $1.92B

• Rating: 62 Neutral
• Price Target: $22.50 ▲(15.56% 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. is a diversified energy and natural resource company based in the United States. The company operates through various segments, including electric and natural gas utilities, construction services, and materials production. MDU provides essential services such as electricity and natural gas distribution, as well as construction services for infrastructure projects, and the production of construction materials, particularly aggregates and asphalt. With a commitment to sustainable practices, MDU Resources plays a vital role in supporting energy and infrastructure needs across multiple states.

How the Company Makes Money

MDU Resources Group generates revenue primarily through its utility operations, which include the distribution of electricity and natural gas to residential, commercial, and industrial customers. The utility segment benefits from regulated pricing structures that ensure stable cash flows. Additionally, the construction services segment contributes significantly to the company's earnings by providing a range of services for public and private sector projects, including road construction and maintenance. The materials production segment, which involves the extraction and sale of aggregates and asphalt, also adds to the revenue stream. MDU has established partnerships with various governmental and commercial entities, which enhance its project pipeline and contribute to steady revenue growth. The company's ability to adapt to regulatory changes and invest in infrastructure improvements further solidifies its financial performance.

Mdu Resources Group Financial Statement Overview

Summary

MDU Resources Group faces challenges with revenue volatility and profitability, as seen in the income statement. The balance sheet is stable but shows signs of declining efficiency. Cash flow performance is inconsistent, with recent improvements needing to be sustained. The company should focus on stabilizing revenue and enhancing cash flow generation to improve financial health.

Income Statement

The income statement shows significant volatility with a negative revenue in the TTM period, leading to negative margins. Historical data indicates declining revenue growth and fluctuating profitability, with recent periods showing negative growth. The company needs to stabilize its revenue streams and improve profitability.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio around 0.85, which is manageable but requires monitoring. Return on equity has been declining, indicating potential inefficiencies in generating returns from equity. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals a strong growth in free cash flow in the TTM period, but historical data shows inconsistency with negative free cash flow in several years. The operating cash flow to net income ratio is below 1, indicating potential issues in converting income into cash. The company should focus on improving cash flow consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	1.76B	1.80B	1.75B	3.45B	5.53B
Gross Profit	597.67M	571.94M	518.53M	490.06M	687.28M	1.05B
EBITDA	515.91M	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	-22.31M	-20.51M	-187.10M	67.48M	10.58M	210.37M
Operating Cash Flow	453.32M	502.32M	332.63M	510.06M	495.78M	768.37M
Investing Cash Flow	-520.02M	-552.68M	-540.79M	-638.88M	-885.88M	-630.24M
Financing Cash Flow	38.53M	40.30M	204.62M	155.17M	384.71M	-145.04M

Mdu Resources Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 19.47 is below the 20-day moving average (MA) of 19.79, below the 50-day MA of 19.83, and above the 200-day MA of 17.37, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 53.25 is Neutral, 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
SEB	73 Outperform	$4.18B	10.43	8.36%	0.21%	10.31%	―
VMI	71 Outperform	$8.20B	35.82	14.90%	0.63%	1.23%	-22.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
MDU	62 Neutral	$3.98B	23.69	6.42%	2.77%	-57.80%	-57.40%
CODI	50 Neutral	$385.21M	-1.29	―	19.53%	-15.85%	-59.42%
IEP	48 Neutral	$4.42B	-9.17	-12.71%	27.14%	-8.45%	27.66%
FIP	48 Neutral	$548.91M	-1.95	-13.99%	1.91%	32.39%	-19.35%

Mdu Resources Group Corporate Events

MDU Resources Group Enters Forward Sale Agreements

On December 3, 2025, MDU Resources Group, Inc. entered into forward sale agreements with Wells Fargo Bank, Bank of America, and JPMorgan Chase Bank for the sale of over 10 million shares of its common stock. The shares were borrowed and sold to underwriters as part of a public offering, with an additional option for underwriters to purchase more shares. This move is part of a registered offering under the Securities Act, indicating a strategic financial maneuver by the company.

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.