MDU Resources Group Inc. Common Stock (Holding Company) (MDU)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I see a regulated utility with a narrow but real franchise: MDU Resources operates electric, natural gas distribution, and pipeline assets across several states. The low beta of 0.38 and 3.04% dividend yield suggest a defensive profile. But defense is not enough; I want returns and cash. FairStock’s trailing figures show ROE of 6.89% and ROCE of 2.65%, which are modest, and trailing free cash flow is -$386.1M, a -9.5% FCF yield. The balance sheet carries D/E of 0.88 and an Altman Z-Score of 0.78, so leverage deserves attention. Recent operations improved: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $372.9M, net income $21.2M, and diluted EPS $0.10, versus fiscal Q2 2025 revenue $348.7M, net income $13.8M, and EPS $0.07. Still, the multi-year record is weak: FY2025 net income was $190.4M and EPS $0.93, down from FY2024’s $281.1M and $1.37 and FY2023’s $414.7M and $2.03. FairStock categorizes it as a SLOW GROWER—Shrinking, with profit -13.4% a year over five years and revenue -19.6%. At the 2026-10-26 close of $19.39, P/E is 20.63, P/B 1.39, and the Graham Number is $17.15, leaving a -12.07% margin of safety. I would call it fairly priced at best, not a bargain, until cash flow and returns improve.

In plain English: MDU Resources runs regulated electric, natural gas and pipeline businesses in several U.S. states. The latest filed quarter showed more profit than a year earlier, but annual profit has fallen over recent years and cash flow is negative. At $19.39, the price is above a conservative value estimate from its earnings and book value, so it does not look clearly cheap.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer