Mdu Resources Group (MDU) AI Stock Analysis

• Market Cap: $3.40B
• Dividend Yield: 3.18%
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.83
• Revenue Growth: -25.50%
• EPS Growth: -45.13%
• Country: US
• Employees: 2,052
• Sector: Industrials
• Sector Strength: 87
• Industry: Conglomerates
• EPS (TTM): 0.40
• Shares Outstanding: 204,331,180
• 10 Day Avg. Volume: 1,276,277
• 30 Day Avg. Volume: 1,378,746
• PEG Ratio: -1.99
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.98
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 11.68
• Enterprise Value/Ebitda: 2.19
• 1Y Price Target: $18.45
• Price Target Upside: 12.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $18.50 ▲(13.15%Upside)

The overall stock score reflects MDU's robust financial performance, especially revenue growth and stable valuation. The positive earnings call sentiment further enhances the score, though technical analysis suggests a cautious outlook due to neutral market trends.

Positive Factors

Earnings

MDU ultimately delivered adjusted regulated net income at the top end of the revised range of $184.4Mn.

Financial Stability

The balance sheet is solid and can support the attractive growth profile.

Growth Strategy

MDU is pursuing its pure-play regulated growth story via a 7-8% rate base CAGR, active regulatory strategy.

Negative Factors

Guidance

Conservative guidance is not atypical: original regulated net income guidance for FY’24 was $170-$180Mn, which was revised upward to $180-$185Mn later in the year.

Mdu Resources Group Business Overview & Revenue Model

Company Description

MDU Resources Group, Inc. is a diversified natural resources company headquartered in Bismarck, North Dakota. The company operates in various sectors, including energy, construction materials, and services. MDU Resources provides electric and natural gas utility services, operates through its subsidiaries in the construction materials and services industries, and engages in oil and natural gas production.

How the Company Makes Money

MDU Resources Group generates revenue through several key streams. Its utility business, consisting of electric and natural gas distribution, forms a significant portion of its income, providing energy services to residential, commercial, and industrial customers. The construction materials and services segment, which includes the production and sale of aggregates, asphalt, and ready-mix concrete, contributes substantially to its earnings. This segment also involves construction contracting services such as road building and site development. Additionally, MDU's oil and natural gas production operations, which focus on exploring and extracting these resources, add to its revenue. The company's earnings are further supported by strategic partnerships and contracts within the sectors it operates, coupled with regulatory frameworks that ensure stable pricing and demand for its utility services.

Mdu Resources Group Financial Statement Overview

Summary

MDU Resources Group demonstrates solid financial performance with strong revenue growth and a stable balance sheet. However, net income pressures and cash flow fluctuations need attention, despite improved cash generation.

Income Statement

The TTM (Trailing-Twelve-Months) gross profit margin is approximately 14.1%, and the net profit margin is around 7.9%. The EBIT margin is 7.3%, while the EBITDA margin is 14.2%. There is significant revenue growth in the TTM period compared to the previous year, indicating strong top-line performance. However, the net income has decreased compared to the previous year, reflecting some pressure on profitability.

Balance Sheet

The debt-to-equity ratio stands at 0.80, indicating moderate leverage. The equity ratio is approximately 39.4%, showing a stable financial position with a significant portion of assets funded by equity. Return on equity (ROE) is around 9.6% for the TTM, which suggests reasonable profitability for equity holders.

Cash Flow

The free cash flow has turned positive in the TTM period, indicating improvement in cash generation. The operating cash flow to net income ratio is 2.11, reflecting robust cash flow relative to net income. However, the free cash flow growth rate shows volatility, with significant fluctuations over the periods analyzed.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.31B	1.76B	4.66B	6.97B	5.68B	5.53B
	Gross Profit
468.25M	571.94M	622.04M	1.15B	1.04B	1.05B
	EBIT
242.56M	265.64M	425.98M	574.00M	534.20M	544.90M
	EBITDA
470.86M	507.09M	867.71M	590.66M	859.26M	856.14M
	Net Income Common Stockholders
262.17M	281.11M	414.71M	367.49M	378.13M	390.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.54M	66.90M	48.88M	80.52M	54.16M	59.55M
	Total Assets
6.96B	7.04B	7.83B	9.66B	8.91B	8.05B
	Total Debt
2.19B	2.29B	2.47B	3.21B	2.87B	2.38B
	Net Debt
2.13B	2.23B	2.42B	3.13B	2.81B	2.32B
	Total Liabilities
4.22B	4.35B	4.93B	6.07B	5.53B	4.97B
	Stockholders Equity
2.74B	2.69B	2.91B	3.59B	3.38B	3.08B
Cash Flow		Free Cash Flow
62.73M	-20.51M	-187.10M	-146.59M	-163.63M	210.39M
	Operating Cash Flow
552.38M	502.32M	332.63M	510.00M	495.80M	768.40M
	Investing Cash Flow
-530.16M	-552.68M	-540.79M	-638.90M	-885.90M	-630.20M
	Financing Cash Flow
-54.29M	40.30M	204.62M	155.20M	384.71M	-145.10M

Mdu Resources Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDU, the sentiment is Negative. The current price of 16.35 is below the 20-day moving average (MA) of 16.90, below the 50-day MA of 16.79, and below the 200-day MA of 16.66, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 12.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDU.

Mdu Resources Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	80 Outperform	$6.46B	18.72	22.84%	0.84%	-0.57%	116.12%
MDU	68 Neutral	$3.40B	12.77	9.63%	3.18%	-25.50%	-45.13%
GFF	66 Neutral	$3.29B	14.01	110.90%	1.06%	-3.38%	26.22%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
SEB	54 Neutral	$2.67B	26.74	2.09%	0.33%	-0.31%	-58.07%
IEP	51 Neutral	$4.49B	―	-26.60%	24.30%	-11.56%	-44.04%
CODI	48 Neutral	$477.75M	―	-4.98%	15.75%	6.77%	9.95%

Mdu Resources Group Corporate Events

MDU Resources Group Amends Incentive Plan at Annual Meeting

At the annual stockholders’ meeting on May 13, 2025, MDU Resources Group, Inc. received approval for its amended Long-Term Performance-Based Incentive Plan (LTIP), which now includes non-employee directors as eligible participants and sets caps on long-term incentive awards for both directors and employees. The LTIP, effective immediately upon approval, also establishes a minimum vesting period for certain awards and limits exemptions from this requirement. Additionally, stockholders elected seven board members, approved executive compensation, ratified the appointment of Deloitte & Touche LLP as the independent auditor for 2025, and supported the LTIP, indicating strong backing for the company’s governance and compensation strategies.

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 Group Releases Investor Presentation Online

Mdu Resources Group announced the availability of its Investor Presentation and Infographic on its corporate website. The release clarifies that the information provided is not part of the Current Report on Form 8-K and is not incorporated into any other filings with the U.S. Securities and Exchange Commission.