Mdu Resources Group (MDU) AI Stock Analysis

• Market Cap: $3.56B
• Dividend Yield: 2.96%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.83
• Revenue Growth: -25.50%
• EPS Growth: -45.13%
• Country: US
• Employees: 2,052
• Sector: Industrials
• Sector Strength: 91
• Industry: Conglomerates
• EPS (TTM): 0.40
• Shares Outstanding: 204,331,180
• 10 Day Avg. Volume: 1,764,847
• 30 Day Avg. Volume: 1,470,063
• PEG Ratio: -0.43
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -155.50
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 6.13
• Enterprise Value/Ebitda: 1.99
• 1Y Price Target: $18.45
• Price Target Upside: 5.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

MDU Resources Group's overall stock score reflects a solid financial foundation with strong revenue growth and strategic investments, particularly in renewable energy. The company shows potential undervaluation and offers a reasonable dividend yield. Technical analysis indicates moderate market interest. Despite facing challenges in the electric segment due to operational costs, the overall outlook remains positive, supported by strong corporate governance.

Positive Factors

Balance Sheet

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

Earnings

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

Growth Strategy

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

Negative Factors

Conservative Guidance

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

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 demonstrates strong cost management and balance sheet stability. However, the company faces challenges with declining revenue and profitability, as well as negative free cash flow. To enhance financial performance, the company should focus on revenue growth and improving cash flow management. Despite these challenges, the company's financial foundation remains solid, with opportunities for strategic improvements.

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

Mdu Resources Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.42
• 50DMA: Positive
• 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 17.42 is above the 20-day moving average (MA) of 17.13, above the 50-day MA of 16.84, and above the 200-day MA of 16.47, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 56.37 is Neutral, neither overbought nor oversold. The STOCH value of 44.07 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
VMI	75 Outperform	$6.53B	18.94	22.84%	0.76%	-0.57%	116.12%
GFF	73 Outperform	$3.45B	15.19	110.90%	0.90%	-3.38%	26.22%
MDU	71 Outperform	$3.56B	13.61	9.63%	2.96%	-25.50%	-45.13%
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%
CODI	58 Neutral	$594.36M	―	-4.98%	12.66%	6.77%	9.95%
SEB	55 Neutral	$2.40B	24.52	2.09%	0.36%	-0.31%	-58.07%
IEP	49 Neutral	$5.32B	―	-26.60%	30.77%	-11.56%	-44.04%

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.

Spark’s Take on MDU Stock

According to Spark, TipRanks’ AI Analyst, MDU is a Neutral.

MDU Resources Group’s stock is characterized by solid financial performance with significant revenue growth and stable balance sheet metrics, though net income pressures and cash flow volatility are notable. The recent earnings call highlights strong growth prospects, especially in pipeline and renewable energy investments, while the electric segment faces challenges. Technical indicators suggest moderate market interest, and the valuation metrics indicate potential undervaluation. The strategic acquisition in renewable energy further supports the company’s growth narrative.

To see Spark’s full report on MDU stock, click here.

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.

Spark’s Take on MDU Stock

According to Spark, TipRanks’ AI Analyst, MDU is a Neutral.

MDU Resources Group’s overall score reflects its strong valuation and strategic corporate event, which partially offsets challenges in financial performance and mixed technical indicators. While the company’s financial foundation is solid, focusing on revenue growth and cash flow improvement remains crucial. The earnings call and technical analysis indicate areas for caution, balancing the positive impact of recent corporate events.

To see Spark’s full report on MDU stock, click here.