Monday, February 11, 2008 5:19:36 PM
We rate MDU RESOURCES GROUP INC (MDU) a BUY. This is driven by several positive factors, which we
believe should have a greater impact than any weaknesses, and should give investors a better performance
opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its
growth in earnings per share, revenue growth and increase in net income. We feel these strengths outweigh
the fact that the company shows low profit margins.
HIGHLIGHTS
MDU RESOURCES GROUP INC has improved earnings per share by 15.6% in the most recent quarter
compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per
share growth over the past two years. We feel that this trend should continue. During the past fiscal year,
MDU RESOURCES GROUP INC increased its bottom line by earning $1.77 versus $1.71 in the prior year. This
year, the market expects an improvement in earnings ($1.95 versus $1.77).
The revenue growth significantly trails the industry average of 106.0%. Since the same quarter one year prior,
revenues rose by 12.9%. This growth in revenue appears to have trickled down to the company's bottom line,
improving the earnings per share.
The company, on the basis of net income growth from the same quarter one year ago, has significantly
underperformed compared to the Multi-Utilities industry average, but is greater than that of the S&P 500. The
net income increased by 14.7% when compared to the same quarter one year prior, going from $82.58 million
to $94.70 million.
Compared to where it was trading a year ago, MDU's share price has not changed very much due to (a) the
relatively weak year-over-year performance of the overall market, (b) the company's stagnant earnings, and
(c) other mixed results. Despite the stock's decline during the last year, it is still somewhat more expensive
(in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that
other strengths this company displays offset this slight negative.
The gross profit margin for MDU RESOURCES GROUP INC is rather low; currently it is at 19.50%. Regardless of
MDU's low profit margin, it has managed to increase from the same period last year. Despite the mixed
results of the gross profit margin, MDU's net profit margin of 7.70% is significantly lower than the same period
one year prior.
Regards,
frenchee
#board-4258 TSP Trend Timing: EFA (I), TLT (F), SPY (C), and VXF (S)
Recent MDU News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 08:44:47 PM
- MDU Resources Reports Strong First Quarter Results; Affirms 2024 Guidance • PR Newswire (US) • 05/02/2024 12:30:00 PM
- MDU Resources to Webcast First Quarter 2024 Earnings Conference Call • PR Newswire (US) • 04/11/2024 02:15:00 PM
- MDU Resources Files Confidential Form 10 for Planned Late 2024 Spinoff of Construction Services Business • PR Newswire (US) • 03/25/2024 08:30:00 PM
- MDU Construction Services Group Rebrands to Everus Construction Group; Spinoff Remains on Track for Late 2024 • PR Newswire (US) • 03/13/2024 08:20:00 PM
- MDU Resources Affirms 2024 Guidance, Updates Long-Term Earnings Per Share Guidance • PR Newswire (US) • 03/13/2024 12:30:00 PM
- MDU Resources Celebrates 100 Years With Analyst and Investor Day, Ringing Closing Bell at NYSE • PR Newswire (US) • 03/11/2024 12:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/26/2024 02:18:45 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 02/23/2024 09:19:45 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/22/2024 10:28:03 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/21/2024 08:35:31 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/16/2024 10:20:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/16/2024 10:20:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/16/2024 10:20:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/16/2024 10:20:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/16/2024 10:20:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/16/2024 10:20:30 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/16/2024 10:20:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/16/2024 10:20:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/16/2024 10:20:18 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/16/2024 10:20:18 PM
- MDU Resources Declares Quarterly Dividend on Common Stock • PR Newswire (US) • 02/15/2024 04:15:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/13/2024 09:55:50 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/08/2024 01:33:42 PM
- MDU Resources Reports Robust Growth in 2023; Initiates Guidance for 2024 • PR Newswire (US) • 02/08/2024 01:30:00 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM