📊 MDU Key Takeaways
Is MDU a Good Investment? Thesis Analysis
MDU Resources exhibits significant operational challenges despite modest revenue growth, with deteriorating profitability (net income down 32.3% YoY) and severely negative free cash flow of -$297M indicating the company is consuming capital faster than it generates. The combination of weak liquidity metrics (current ratio of 0.84x), high leverage (0.97x debt-to-equity), and capital expenditures exceeding operating cash flow raises concerns about financial sustainability and ability to service $2.7B in long-term debt.
Why Buy MDU? Key Strengths
- Strong interest coverage ratio of 10.1x indicates current ability to service debt obligations
- Solid operating cash flow of $473.4M demonstrates core business can generate cash from operations
- Modest revenue growth of 0.7% YoY shows business maintains some stability despite headwinds
MDU Investment Risks to Consider
- Negative free cash flow of -$297M signals company is burning cash and relying on external financing or asset sales
- Current ratio of 0.84x indicates potential liquidity stress and difficulty meeting short-term obligations
- Net income decline of 32.3% YoY combined with rising capital expenditures ($770.4M) suggests profitability deterioration and unsustainable capital intensity
- High leverage with debt-to-equity ratio of 0.97x limits financial flexibility during operational challenges
- Low returns on equity (6.9%) and assets (2.5%) indicate inefficient capital deployment
Key Metrics to Watch
- Free cash flow trends and ability to achieve FCF positive operations
- Capital expenditure justification and expected return on increased capex investments
- Debt refinancing conditions and interest rate environment impact on leverage sustainability
MDU Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
MDU Profitability Ratios
MDU vs Default Sector
How MDU RESOURCES GROUP INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MDU Overvalued or Undervalued?
Based on fundamental analysis, MDU RESOURCES GROUP INC has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MDU Balance Sheet & Liquidity
MDU 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: MDU RESOURCES GROUP INC's revenue has declined by 60% over the 5-year period, indicating business contraction. The most recent EPS of $2.03 reflects profitable operations.
MDU Growth Metrics (YoY)
MDU Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $290.7M | $13.8M | $0.09 |
| Q2 2025 | $343.1M | $13.8M | $0.07 |
| Q1 2025 | $588.2M | $82.0M | $0.40 |
| Q3 2024 | $991.3M | $38.4M | $0.32 |
| Q2 2024 | $1.0B | $38.4M | $0.30 |
| Q1 2024 | $1.2B | $38.4M | $0.19 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MDU Capital Allocation
MDU SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for MDU RESOURCES GROUP INC (CIK: 0000067716)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MDU
What is the AI rating for MDU?
MDU RESOURCES GROUP INC (MDU) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MDU's key strengths?
Claude: Strong interest coverage ratio of 10.1x indicates current ability to service debt obligations. Solid operating cash flow of $473.4M demonstrates core business can generate cash from operations.
What are the risks of investing in MDU?
Claude: Negative free cash flow of -$297M signals company is burning cash and relying on external financing or asset sales. Current ratio of 0.84x indicates potential liquidity stress and difficulty meeting short-term obligations.
What is MDU's revenue and growth?
MDU RESOURCES GROUP INC reported revenue of $1.9B.
Does MDU pay dividends?
MDU RESOURCES GROUP INC pays dividends, with $108.2M distributed to shareholders in the trailing twelve months.
Where can I find MDU SEC filings?
Official SEC filings for MDU RESOURCES GROUP INC (CIK: 0000067716) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MDU's EPS?
MDU RESOURCES GROUP INC has a diluted EPS of $0.93.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MDU a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, MDU RESOURCES GROUP INC has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MDU stock overvalued or undervalued?
Valuation metrics for MDU: ROE of 6.9% (sector avg: 15%), net margin of 10.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy MDU stock in 2026?
Our dual AI analysis gives MDU RESOURCES GROUP INC a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MDU's free cash flow?
MDU RESOURCES GROUP INC's operating cash flow is $473.4M, with capital expenditures of $770.4M. FCF margin is -15.8%.
How does MDU compare to other Default stocks?
Vs Default sector averages: Net margin 10.2% (avg: 12%), ROE 6.9% (avg: 15%), current ratio 0.84 (avg: 1.8).