Mdu Resources Group (MDU) AI Stock Analysis

• Market Cap: $3.96B
• Dividend Yield: 2.69%
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.71
• Revenue Growth: -40.60%
• EPS Growth: -47.10%
• Country: US
• Employees: 2,052
• Sector: Utilities
• Sector Strength: 65
• Industry: Conglomerates
• EPS (TTM): 0.07
• Shares Outstanding: 204,331,180
• 10 Day Avg. Volume: 2,725,740
• 30 Day Avg. Volume: 2,619,700
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 10.61
• Enterprise Value/Gross Profit: 14.24
• Enterprise Value/Ebitda: 13.77
• 1Y Price Target: $21.00
• Price Target Upside: 8.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $20.00 ▲(3.09% Upside)

MDU Resources Group's overall stock score is primarily influenced by its strong technical momentum and reasonable valuation. However, significant challenges in financial performance, particularly the declining revenue and increased operating costs, weigh on the score. The earnings call further highlighted these financial concerns, despite strategic expansions and strong customer demand.

Positive Factors

Regulatory Approval

Regulatory approval for the Badger Wind Farm investment provides a stable framework for future growth in renewable energy, enhancing MDU's long-term strategic positioning in sustainable energy solutions.

Capital Investment Plans

The planned capital investment underscores MDU's commitment to infrastructure growth, supporting utility rate base expansion and long-term earnings growth, essential for sustaining competitive advantage in the energy sector.

Data Center Agreements

The data center agreements reflect a strategic move into a growing market, leveraging a capital-light model that enhances earnings and offers cost savings, strengthening MDU's financial performance and market position.

Negative Factors

Declining Revenue

The significant decline in revenue poses a risk to MDU's long-term profitability and financial health, necessitating strategic adjustments to reverse this trend and maintain competitive market positioning.

Increased Operating Costs

Rising operating costs can pressure margins and profitability, potentially limiting MDU's ability to invest in growth initiatives and affecting long-term financial stability and operational efficiency.

Low Cash Conversion

Limited cash conversion from profits indicates potential liquidity issues, affecting MDU's ability to fund operations and growth, which could impact long-term financial resilience and strategic flexibility.

Mdu Resources Group Business Overview & Revenue Model

Company Description

MDU Resources Group, Inc. is a diversified energy and construction company headquartered in Bismarck, North Dakota. The company operates through various segments, including electric and natural gas utility operations, pipeline and energy services, construction materials, and contract construction. MDU provides essential services such as electric generation, transmission, and distribution, as well as natural gas distribution to residential, commercial, and industrial customers. The construction segment focuses on providing infrastructure and related services, including road and bridge construction, utility construction, and materials production.

How the Company Makes Money

MDU Resources generates revenue through several key streams. The utility operations segment earns revenue primarily from the sale of electric and natural gas services to consumers, which is regulated and provides stable cash flow. The pipeline and energy services segment contributes through transportation and storage of natural gas and other energy resources, capitalizing on the growing demand for energy infrastructure. Additionally, the construction materials and contract construction segments earn revenue through projects related to infrastructure development, including road, bridge, and utility construction, as well as the sale of aggregate and concrete products. Significant partnerships with various governmental and private entities enhance MDU's ability to secure contracts and expand its service offerings, thereby contributing to its overall earnings. The company's focus on sustainable energy solutions and infrastructure development positions it favorably in the growing energy market.

Mdu Resources Group Financial Statement Overview

Summary

MDU Resources Group shows solid financial performance with strong revenue growth and stable balance sheet metrics. However, there is pressure on net income and cash flow fluctuations, which slightly dampen the overall financial outlook.

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	522.63M	1.76B	4.66B	6.97B	5.68B	5.53B
Gross Profit	389.38M	571.94M	622.04M	1.15B	1.04B	1.05B
EBITDA	402.70M	507.09M	867.71M	590.66M	859.26M	856.14M
Net Income	215.52M	281.11M	414.71M	367.49M	378.13M	390.20M
Balance Sheet
Total Assets	6.95B	7.04B	7.83B	9.66B	8.91B	8.05B
Cash, Cash Equivalents and Short-Term Investments	58.80M	66.90M	48.88M	80.52M	54.16M	59.55M
Total Debt	2.18B	2.29B	2.47B	3.21B	2.87B	2.38B
Total Liabilities	4.21B	4.35B	4.93B	6.07B	5.53B	4.97B
Stockholders Equity	2.73B	2.69B	2.91B	3.59B	3.38B	3.08B
Cash Flow
Free Cash Flow	80.67M	-20.51M	-187.10M	-146.59M	-163.63M	210.39M
Operating Cash Flow	534.02M	502.32M	332.63M	510.00M	495.80M	768.40M
Investing Cash Flow	-491.14M	-552.68M	-540.79M	-638.90M	-885.90M	-630.20M
Financing Cash Flow	-80.13M	40.30M	204.62M	155.20M	384.71M	-145.10M

Mdu Resources Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 19.4 is above the 20-day moving average (MA) of 18.57, above the 50-day MA of 17.21, and above the 200-day MA of 16.84, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 79.73 is Negative, neither overbought nor oversold. The STOCH value of 87.65 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
VMI	78 Outperform	$7.92B	35.40	14.90%	0.64%	1.23%	-22.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
SEB	62 Neutral	$3.29B	23.96	2.92%	0.27%	4.70%	-44.60%
CODI	59 Neutral	$547.72M	-5.48	―	13.09%	6.77%	9.95%
MDU	58 Neutral	$3.96B	18.71	7.98%	2.69%	-40.60%	-47.10%
FIP	54 Neutral	$653.70M	―	-9.32%	1.61%	16.07%	30.39%
IEP	49 Neutral	$4.69B	-6.64	-21.56%	24.45%	-11.23%	-6.85%

Mdu Resources Group Corporate Events

MDU Resources Expands Board with New Appointments

On August 12, 2025, MDU Resources Group’s Board of Directors expanded to nine members, appointing Charles M. Kelley and Tammy J. Miller as independent directors. Kelley, with extensive experience in the natural gas industry, and Miller, a former North Dakota lieutenant governor and business leader, will serve on the Audit Committee. Their appointments are expected to enhance MDU’s strategic growth in natural gas infrastructure and align with its mission to deliver reliable energy services.

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 Earnings Call: Mixed Outlook with Growth Potential

The recent earnings call for MDU Resources presented a mixed outlook, highlighting both challenges and growth opportunities. While the company is poised for strong growth in its pipeline and utility segments, current financial performance has been hampered by increased operating costs and weather-related issues. This has led to a revision of the earnings guidance, reflecting the complexities of the current economic environment.

MDU Resources Reports Q2 2025 Results and Updates Guidance

MDU Resources Group, Inc., a member of the S&P SmallCap 600 index, provides electric utility and natural gas distribution services across the Pacific Northwest and Midwest, and operates a substantial natural gas pipeline network in the Northern Plains.

MDU Resources Enters $400M Stock Distribution Agreement

On August 7, 2025, MDU Resources Group, Inc. entered into a distribution agreement with Wells Fargo Securities, LLC and BofA Securities, Inc. for the issuance and sale of up to $400 million in common stock. This agreement allows for shares to be sold through various methods, including at-the-market offerings and privately-negotiated transactions. The arrangement includes forward sale agreements with Bank of America, N.A. and Wells Fargo Bank, National Association, which will facilitate the sale of shares by borrowing them from third parties. The company will receive proceeds upon the physical settlement of these forward sale agreements, although it retains the option for cash or net share settlement, which may not result in proceeds. The agreement provides flexibility in determining the timing and amount of sales, influenced by market conditions and trading prices.

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

Mdu Resources Group announced the availability of an Investor Presentation and Infographic on their corporate website. This release provides stakeholders with additional resources to understand the company’s current financial standing and strategic direction.

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.