Mdu Resources Group (MDU) AI Stock Analysis

• Market Cap: $3.43B
• Dividend Yield: 3.04%
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.10
• Revenue Growth: -22.50%
• EPS Growth: -32.26%
• Country: US
• Employees: 2,052
• Sector: Industrials
• Sector Strength: 70
• Industry: Conglomerates
• EPS (TTM): 1.37
• Shares Outstanding: 204,331,180
• 10 Day Avg. Volume: 1,904,837
• 30 Day Avg. Volume: 1,699,497
• PEG Ratio: 0.96
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.95
• Price to Cash Flow (P/CF): 14.20
• P/FCF Ratio: 14.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.82
• Price Target Upside: 10.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

MDU Resources Group demonstrates solid financial foundations with opportunities for strategic improvements. Despite challenges in revenue and cash flow, the company benefits from strong cost management, attractive valuation, and strategic growth initiatives, such as expanding its renewable energy portfolio.

Positive Factors

Financial Performance

MDU outperformed the utility peer group by 9% and is up 53% YTD, showcasing strong financial performance.

Growth Potential

MDU has the potential to sign incremental data center customer contracts, enhancing future growth prospects.

Regulatory Strategy

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

Negative Factors

Earnings Adjustments

Minor changes to the earnings model reflect updated assumptions for certain end market growth and profitability, with slight reductions in EPS estimates.

Spin-off Impact

The downgrade to Neutral from Buy is due to the expectation that upside potential is diminishing despite strong spin execution.

Valuation Concerns

The sum-of-the-parts analysis indicates that positive qualities are largely reflected in the current price, suggesting limited upside potential.

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 two key business segments: regulated energy delivery and construction materials and services. In the energy delivery segment, the company earns money by distributing natural gas and electricity to residential, commercial, and industrial customers under regulated tariffs, which provide a stable revenue stream. This segment benefits from regulatory frameworks that allow for cost recovery and a reasonable rate of return on investment. In the construction materials and services segment, MDU Resources generates revenue by producing and selling construction materials such as aggregates, asphalt, and ready-mix concrete. Additionally, it provides construction services for infrastructure projects, including roads, bridges, and commercial buildings. The company's earnings are supported by a mix of long-term contracts and demand for infrastructure development. Strategic partnerships with government entities and private sector clients also play a role in driving revenue growth.

Mdu Resources Group Financial Statement Overview

Summary

Mdu Resources Group shows strong cost management and balance sheet stability, but faces challenges with declining revenue and profitability, as well as negative free cash flow. The company should focus on revenue growth and improving cash flow management.

Income Statement

Mdu Resources Group shows a declining revenue trend over the past year with a significant decrease from $6.97 billion to $4.66 billion. Despite this, the company maintains strong gross profit margins, indicating effective cost management. However, the net profit margin has decreased, reflecting challenges in maintaining profitability amidst declining revenues. EBIT and EBITDA margins show stability but face pressure from declining revenue.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leverage. Stockholders' equity has decreased, but the equity ratio remains stable, suggesting that the company manages its financial stability well. Return on Equity has been affected by declining net income, but overall, the balance sheet remains robust with manageable liabilities.

Cash Flow

Free cash flow has been negative, indicating challenges in generating cash from operations after capital expenditures. Operating cash flow remains positive but shows a downward trend. The operating cash flow to net income ratio indicates decent cash conversion despite negative free cash flow. The company needs to address capital expenditure efficiency to improve cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.17B	1.76B	4.66B	6.97B	5.68B	5.53B
	Gross Profit
1.04B	571.96M	622.04M	1.15B	1.04B	1.05B
	EBIT
499.34M	265.64M	425.98M	574.00M	534.20M	544.90M
	EBITDA
823.24M	507.09M	867.71M	590.66M	859.26M	856.14M
	Net Income Common Stockholders
328.26M	281.11M	414.71M	367.49M	378.13M	390.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.20M	66.90M	48.88M	80.52M	54.16M	59.55M
	Total Assets
7.04B	7.04B	7.83B	9.66B	8.91B	8.05B
	Total Debt
2.29B	2.29B	2.47B	3.21B	2.87B	2.38B
	Net Debt
2.24B	2.23B	2.42B	3.13B	2.81B	2.32B
	Total Liabilities
4.35B	4.35B	4.93B	6.07B	5.53B	4.97B
	Stockholders Equity
2.69B	2.69B	2.91B	3.59B	3.38B	3.08B
Cash Flow		Free Cash Flow
-257.18M	-111.01M	-187.10M	-146.59M	-163.63M	210.39M
	Operating Cash Flow
430.45M	411.81M	332.63M	510.00M	495.80M	768.40M
	Investing Cash Flow
-910.42M	-552.68M	-540.79M	-638.90M	-885.90M	-630.20M
	Financing Cash Flow
487.44M	40.30M	204.62M	155.20M	384.71M	-145.10M

Mdu Resources Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 17.06 is above the 20-day moving average (MA) of 16.79, below the 50-day MA of 17.13, and above the 200-day MA of 15.88, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.31 is Neutral, neither overbought nor oversold. The STOCH value of 70.57 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
ATO	77 Outperform	$23.59B	21.26	9.00%	2.25%	5.90%	11.85%
OGE	73 Outperform	$9.05B	20.50	9.65%	3.73%	11.63%	5.61%
MDU	70 Outperform	$3.43B	12.21	10.51%	3.04%	-22.50%	-32.26%
SWX	68 Neutral	$5.40B	27.22	5.84%	3.30%	-5.92%	29.47%
CNP	66 Neutral	$23.28B	22.61	10.02%	2.32%	-0.61%	15.54%
NFG	65 Neutral	$7.09B	82.82	-0.36%	2.61%	-10.64%	-102.62%
Sector *	62 Neutral	$8.27B	14.03	2.36%	3.08%	3.85%	-14.32%

Mdu Resources Group Corporate Events

MDU Resources Group Expands Renewable Energy Portfolio

On February 13, 2025, MDU Resources Group’s subsidiary, Montana-Dakota Utilities Co., entered a purchase agreement to acquire a 49% stake in the Badger Wind Farm, a project in North Dakota, for $294 million. This acquisition, part of MDU’s five-year capital plan, reduces their prior power purchase agreement and aligns with their strategy for a diversified energy portfolio, increasing their renewable energy capacity from 29% to 39%.

Mdu Resources Group Shares Investor Presentation Online

Mdu Resources Group released an Investor Presentation on their corporate website, which is available under their Investor Relations section. The information provided in the presentation and the associated report is not considered part of any official filings with the U.S. Securities and Exchange Commission unless specifically cited.