Mdu Resources Group (MDU) AI Stock Analysis

• Market Cap: $4.14B
• Dividend Yield: 2.76%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.68
• 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: 2,081,363
• 30 Day Avg. Volume: 2,348,221
• 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: 1.43
• Enterprise Value/Revenue: 3.15
• Enterprise Value/Gross Profit: 9.90
• Enterprise Value/Ebitda: 11.47
• 1Y Price Target: $21.00
• Price Target Upside: 4.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $20.50 ▲(1.59% Upside)

The score is held back mainly by weak and volatile financial performance (notably negative TTM revenue and margins) and inconsistent historical cash generation. Guidance and segment execution (Pipeline strength, raised EPS outlook) are supportive, while technical signals are mixed and valuation is only moderately attractive given the P/E despite the dividend yield.

Positive Factors

Pipeline Segment Performance

The strong performance of the pipeline segment indicates robust demand and operational efficiency, which can drive sustainable revenue growth and profitability.

Utility Customer Growth

Steady utility customer growth supports stable revenue streams and reflects effective market penetration, enhancing long-term business stability.

Capital Investment Plan

The increased capital investment plan underscores a commitment to infrastructure growth, potentially boosting future earnings and market position.

Negative Factors

Negative Revenue Growth

Negative revenue growth indicates challenges in maintaining sales momentum, which can affect long-term profitability and market confidence.

Increased Operating Costs

Rising operating costs can erode profit margins, limiting the company's ability to reinvest in growth and affecting long-term financial health.

Inconsistent Cash Flow

Inconsistent cash flow can hinder the company's ability to fund operations and investments, posing risks to financial stability and growth initiatives.

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 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: 20.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 20.18 is above the 20-day moving average (MA) of 19.68, above the 50-day MA of 19.95, and above the 200-day MA of 17.58, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 87.98 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
SEB	73 Outperform	$4.22B	10.74	8.36%	0.21%	10.31%	―
VMI	71 Outperform	$8.38B	36.62	14.90%	0.63%	1.23%	-22.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
MDU	57 Neutral	$4.14B	24.54	6.42%	2.76%	-57.80%	-57.40%
CODI	53 Neutral	$413.80M	―	―	20.53%	-15.85%	-59.42%
IEP	48 Neutral	$4.73B	―	-12.71%	27.59%	-8.45%	27.66%
FIP	48 Neutral	$573.33M	-2.02	-13.99%	1.90%	32.39%	-19.35%

Mdu Resources Group Corporate Events

MDU Resources Expands Forward Equity Offering for Financing

On December 3, 2025, MDU Resources Group, Inc. entered into an underwriting agreement and related forward sale agreements for an underwritten public offering of its common stock, initially covering 10,152,284 forward shares that were borrowed from third parties and sold by forward sellers to the underwriters, with a 30-day option for an additional 1,522,842 shares on the same terms. On December 23, 2025, the underwriters fully exercised this option, and on December 26, 2025, the additional forward shares were borrowed and sold, with MDU entering into corresponding additional forward sale agreements that run through December 6, 2027 and are designed to allow the company to settle physically, in cash, or via net share settlement at an initial forward sale price of $18.90 per share, subject to adjustments tied to interest rates, dividends, and stock-borrowing costs, which collectively could influence future dilution of earnings per share and provide the company with flexible equity financing while deepening its ties to key banking counterparties.

The most recent analyst rating on (MDU) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Mdu Resources Group stock, see the MDU Stock Forecast page.

MDU Resources Extends Revolving Credit Agreement to 2030

On December 11, 2025, MDU Resources Group, Inc. amended and restated its Five-Year Revolving Credit Agreement with U.S. Bank National Association and several lenders, extending the maturity date from May 31, 2028, to December 11, 2030. The agreement maintains an initial commitment amount of $200 million, with options to increase it by $50 million and extend the maturity date twice by one year each. The agreement includes a variable interest rate and a facility fee that depends on the company’s senior unsecured debt rating, with $33,850,000 in loans outstanding as of the agreement date.

The most recent analyst rating on (MDU) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Mdu Resources Group stock, see the MDU Stock Forecast page.

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.

The most recent analyst rating on (MDU) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Mdu Resources Group stock, see the MDU Stock Forecast page.

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.