MDU Resources Group

MDU

Conglomerates · Industrials

Price

$21.14

+0.01 (+0.05%)

Market Cap

$4.42B

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+1.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 202.4M (2021) → 205.3M (2025)

MDU Resources Group is a utility and construction services company based in the United States. It runs natural gas and electric utilities that deliver power and heat to homes and businesses across several western and midwestern states. It also owns a large construction materials and services division that builds roads, bridges, and other infrastructure projects.

The company makes money two ways: steady, regulated utility revenue from its energy customers, and project-based revenue from construction contracts. The utility side provides reliable cash flow because regulators set the rates customers pay. The construction side is more cyclical and depends on government infrastructure spending and private development activity. MDU has been simplifying its business in recent years, having spun off its pipeline business, and is now more focused on these two core segments. The main risk is that rising costs and slower construction demand could pressure margins in the less predictable contracting business.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-10.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-2.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

2.8%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$53M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

MDU Resources Group's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

25.0%

Modest — 25.0% gross margin

Operating Margin

19.1%

Healthy — 19.1% operating margin

ROCE

2.1%

Weak — 2.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

-2.1%

Shrinking sales (-2.1% YoY)

EPS YoY

-28.3%

Earnings shrinking (-28.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

214%

Turns 214% of profit into real cash

FCF Margin

-21.4%

Burning cash (-21.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.89

Moderate — manageable debt (0.89)

Interest Cover

2.58x

Tight — interest eats into profit (2.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

23.0x

Growth-priced — P/E 23.0

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+5.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (23.0 → 18.1)

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Dividends

Dividend Yield

2.70%

Moderate income — 2.70% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+7.7%

Dividend growing modestly (7.7% YoY)

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