MDU Resources Group, Inc. (Holding Company) (MDU) Company Bio
MDU Resources Group provides value-added natural resource products and related services that are essential to energy and transportation infrastructure, including regulated utilities and pipelines, construction materials and services, and exploration and production. The company was founded in 1924 and is based in Bismarck, North Dakota.
MDU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Mdu Resources Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Mdu Resources Group Inc ranked in the 65th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 85.5%. The most interesting components of our discounted cash flow analysis for Mdu Resources Group Inc ended up being:
The company's compound free cash flow growth rate over the past 4.72 years comes in at 0.34%; that's greater than 71.38% of US stocks we're applying DCF forecasting to.
Mdu Resources Group Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 7.49% of tickers in our DCF set.
Relative to other stocks in its sector (Basic Materials), Mdu Resources Group Inc has a reliance on debt greater than 64.98% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MDU, try AXTA, SID, KALU, HGLD, and CC.
Image source Construction and utility provider MDU Resources (MDU) had a tough 2020. Construction projects were halted or delayed in a lot of cases, and utility stocks weren’t exactly in favor with investors during a period when growth stocks reigned supreme. Still, for long-term investors with an eye on value...