MDU Resources Group Inc

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MDU : NYSE : Industrial Goods
$25.99 | %
Today's Range: 25.93 - 26.31
Avg. Daily Volume: 696400.0
09/22/17 - 4:02 PM ET

Financial Analysis


MDU RESOURCES GROUP INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. MDU RESOURCES GROUP INC has average liquidity. Currently, the Quick Ratio is 1.01 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.92% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1067.641043.95
EBITDA ($mil)131.34143.21
EBIT ($mil)79.6888.97
Net Income ($mil)41.21-109.15


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)40.0585.12
Total Assets ($mil)6230.56389.58
Total Debt ($mil)1761.481987.31
Equity ($mil)2302.952237.61


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin12.313.72
EBITDA Margin12.313.71
Operating Margin7.468.52
Sales Turnover0.680.64
Return on Assets3.64-2.67
Return on Equity10.189.26
Debt Q2 FY17 Q2 FY16
Current Ratio1.461.65
Debt/Capital0.430.47
Interest Expense20.7722.22
Interest Coverage3.844.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)195.3195.3
Div / share0.190.19
EPS0.220.24
Book value / share11.7911.46
Institutional Own % n/a n/a
Avg Daily Volume709593.0757748.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 21.71 for the Multi-Utilities industry and a value on par with the S&P 500 average of 24.88. Conducting a second comparison, its price-to-book ratio of 2.30 indicates a discount versus the S&P 500 average of 3.10 and a premium versus the industry average of 2.25. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, MDU RESOURCES GROUP INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MDU 22.98 Peers 21.71   MDU 10.61 Peers 8.33

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

MDU is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MDU is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MDU 20.47 Peers 18.84   MDU 27.36 Peers 3.35

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MDU is trading at a premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MDU trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MDU 2.30 Peers 2.25   MDU 10.28 Peers 29.77

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MDU is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, MDU is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MDU 1.25 Peers 2.45   MDU 2.69 Peers 7.51

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MDU is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MDU significantly trails its peers on the basis of sales growth

 

 

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