Is MDU (MDU) Undervalued Following Its Recent Drop in Share Price?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 06 2025
0mins
Should l Buy MDU?
Source: Yahoo Finance
Recent Stock Performance: MDU Resources Group has experienced a 10% pullback in share price over the past week, despite a 19% increase over the last three months and ongoing earnings growth.
Valuation Insights: The stock is currently trading at $19.26, below the narrative fair value of $20.50, raising questions about whether it is undervalued or if future growth is already priced in.
Growth Potential: MDU is well-positioned to benefit from significant investments in U.S. infrastructure, particularly in pipeline expansions and energy needs, which could lead to substantial revenue and earnings growth.
Investment Risks: The stock trades at a higher price-to-earnings ratio compared to its peers, indicating limited margin for error if growth falters, and potential risks include faster clean energy adoption and persistent cost inflation.
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Analyst Views on MDU
Wall Street analysts forecast MDU stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 20.640
Low
20.00
Averages
21.00
High
22.00
Current: 20.640
Low
20.00
Averages
21.00
High
22.00
About MDU
MDU Resources Group Inc. provides electric and natural gas distribution services across the Pacific Northwest and Midwest. The Company's segments include electric, natural gas distribution and pipeline. Its electric segment provides electric service at retail, serving residential, commercial, industrial and municipal customers in approximately 185 communities and adjacent rural areas. It has interests in approximately 14 electric generating units at 11 facilities and two small portable diesel generators. Its natural gas distribution segment sells natural gas at retail, serving residential, commercial and industrial customers in approximately 339 communities and adjacent rural areas across eight states. Its pipeline segment operates a more than 3,800-mile natural gas pipeline network and storage system, ensuring energy delivery across the Northern Plains. Its underground storage fields provide natural gas storage services to local distribution companies, industrial customers and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Corvex Management Fully Exits MDU Resources Position
- Position Change: Corvex Management sold its entire position of 4,183,151 shares in MDU Resources Group during Q4 2025, resulting in a $74.5 million decrease in the position's quarter-end value, indicating a potential loss of confidence in the company.
- Financial Performance: MDU Resources Group reported a net income of $190.44 million for 2025 with diluted EPS of $0.93, and it projects EPS between $0.93 and $1.00 for 2026, showcasing its profitability in the stable utility sector.
- Capital Allocation Strategy: The sale reflects Corvex's shift of capital away from MDU towards higher-growth investments like Illumina and Amazon, indicating a preference for asymmetric risk over predictable returns, which may impact MDU's future market performance.
- Industry Outlook: MDU achieved a 16% year-over-year growth rate in its rate base, with CEO Nicole Kivisto calling 2025 a “transformative year” and planning to invest $560 million in capital expenditures in 2026, highlighting the company's long-term growth potential in infrastructure and energy.
See More
Corvex Sells Entire Position in MDU Resources Group
- Share Sale Details: Corvex sold 4,183,151 shares of MDU Resources Group in Q4 2026, resulting in a $74.5 million decline in position value, indicating a waning confidence in the company.
- Financial Performance Overview: MDU Resources Group reported a net income of $190.4 million and diluted EPS of $0.93 for 2025, while projecting EPS between $0.93 and $1.00 for 2026, maintaining a long-term earnings growth target of 6% to 8%.
- Capital Allocation Strategy: Corvex's capital reallocation reflects a preference for investing in higher-growth companies like Illumina or Amazon over stable utility firms, showcasing a shift towards asymmetry over predictability.
- Market Outlook Analysis: Although Corvex's exit from MDU Resources Group does not alter the company's fundamentals, it may impact investor confidence, particularly as the firm advances key regulatory activities and major pipeline projects.
See More
MDU Resources Group Declares Quarterly Dividend
- Dividend Declaration: MDU Resources Group's board has declared a quarterly dividend of 14 cents per share, unchanged from the previous quarter, demonstrating the company's ongoing commitment to stable dividends aimed at attracting long-term investors.
- Dividend Payment Date: This dividend will be payable on April 1, 2026, to stockholders of record as of March 12, 2026, ensuring timely returns for shareholders and enhancing investor confidence.
- Long-term Dividend Target: The company continues to target a long-term dividend payout ratio of 60% to 70% of earnings, reflecting its focus on sustainable profitability and shareholder returns, aiming to maintain stable cash flows in the future.
- Company Background: As a member of the S&P SmallCap 600 index, MDU Resources Group is committed to providing safe, reliable, and environmentally responsible electric utility and natural gas services to over 1.2 million customers, showcasing its strong influence and market position in the energy sector.
See More
MDU Resources Group Declares Quarterly Dividend
- Quarterly Dividend Declaration: MDU Resources Group's board has declared a quarterly dividend of 14 cents per share, unchanged from the previous quarter, reflecting the company's ongoing commitment to stable shareholder returns, which is expected to bolster investor confidence.
- Long-term Dividend Target: The company continues to target a long-term dividend payout ratio of 60% to 70% of earnings, indicating its strategy to balance profit growth with shareholder returns, aiming to attract more long-term investors.
- Customer Base Expansion: MDU Resources Group serves over 1.2 million customers with safe, reliable, and environmentally responsible electric and natural gas services, demonstrating its strong influence in the Pacific Northwest and Midwest markets, further solidifying its market position.
- Pipeline Network Advantage: The company operates a more than 3,800-mile natural gas pipeline network, ensuring reliable energy delivery across the Northern Plains, enhancing its critical role in the energy supply chain and supporting future business growth.
See More
MDU Resources (MDU) Q4 2025 Earnings Transcript
See More
MDU Resources Group Reports Q4 2025 Earnings Highlights
- Strong Financial Performance: MDU Resources Group reported full-year 2025 earnings of $190.4 million, or $0.93 per share, aligning with company guidance, demonstrating stability following its transition to a pure-play regulated energy delivery business.
- Capital Investment Plan Update: The company revised its capital investment plan for 2026-2030 to $3.1 billion, reflecting the accelerated acquisition of the Badger Wind Farm, which is expected to further drive future business growth.
- Sustained Customer Growth: MDU experienced a retail customer growth rate of 1.5%, aligning with its annual growth target of 1% to 2%, indicating the company's competitive position and solid customer base in the market.
- Optimistic Future Outlook: The 2026 EPS guidance is set between $0.93 and $1 per share, with a long-term EPS growth target of 6% to 8%, reflecting the company's confidence in its future growth strategy.
See More
Corvex Management Fully Exits MDU Resources Position
- Position Change: Corvex Management sold its entire position of 4,183,151 shares in MDU Resources Group during Q4 2025, resulting in a $74.5 million decrease in the position's quarter-end value, indicating a potential loss of confidence in the company.
- Financial Performance: MDU Resources Group reported a net income of $190.44 million for 2025 with diluted EPS of $0.93, and it projects EPS between $0.93 and $1.00 for 2026, showcasing its profitability in the stable utility sector.
- Capital Allocation Strategy: The sale reflects Corvex's shift of capital away from MDU towards higher-growth investments like Illumina and Amazon, indicating a preference for asymmetric risk over predictable returns, which may impact MDU's future market performance.
- Industry Outlook: MDU achieved a 16% year-over-year growth rate in its rate base, with CEO Nicole Kivisto calling 2025 a “transformative year” and planning to invest $560 million in capital expenditures in 2026, highlighting the company's long-term growth potential in infrastructure and energy.
See More
Corvex Sells Entire Position in MDU Resources Group
- Share Sale Details: Corvex sold 4,183,151 shares of MDU Resources Group in Q4 2026, resulting in a $74.5 million decline in position value, indicating a waning confidence in the company.
- Financial Performance Overview: MDU Resources Group reported a net income of $190.4 million and diluted EPS of $0.93 for 2025, while projecting EPS between $0.93 and $1.00 for 2026, maintaining a long-term earnings growth target of 6% to 8%.
- Capital Allocation Strategy: Corvex's capital reallocation reflects a preference for investing in higher-growth companies like Illumina or Amazon over stable utility firms, showcasing a shift towards asymmetry over predictability.
- Market Outlook Analysis: Although Corvex's exit from MDU Resources Group does not alter the company's fundamentals, it may impact investor confidence, particularly as the firm advances key regulatory activities and major pipeline projects.
See More
MDU Resources Group Declares Quarterly Dividend
- Dividend Declaration: MDU Resources Group's board has declared a quarterly dividend of 14 cents per share, unchanged from the previous quarter, demonstrating the company's ongoing commitment to stable dividends aimed at attracting long-term investors.
- Dividend Payment Date: This dividend will be payable on April 1, 2026, to stockholders of record as of March 12, 2026, ensuring timely returns for shareholders and enhancing investor confidence.
- Long-term Dividend Target: The company continues to target a long-term dividend payout ratio of 60% to 70% of earnings, reflecting its focus on sustainable profitability and shareholder returns, aiming to maintain stable cash flows in the future.
- Company Background: As a member of the S&P SmallCap 600 index, MDU Resources Group is committed to providing safe, reliable, and environmentally responsible electric utility and natural gas services to over 1.2 million customers, showcasing its strong influence and market position in the energy sector.
See More
MDU Resources Group Declares Quarterly Dividend
- Quarterly Dividend Declaration: MDU Resources Group's board has declared a quarterly dividend of 14 cents per share, unchanged from the previous quarter, reflecting the company's ongoing commitment to stable shareholder returns, which is expected to bolster investor confidence.
- Long-term Dividend Target: The company continues to target a long-term dividend payout ratio of 60% to 70% of earnings, indicating its strategy to balance profit growth with shareholder returns, aiming to attract more long-term investors.
- Customer Base Expansion: MDU Resources Group serves over 1.2 million customers with safe, reliable, and environmentally responsible electric and natural gas services, demonstrating its strong influence in the Pacific Northwest and Midwest markets, further solidifying its market position.
- Pipeline Network Advantage: The company operates a more than 3,800-mile natural gas pipeline network, ensuring reliable energy delivery across the Northern Plains, enhancing its critical role in the energy supply chain and supporting future business growth.
See More
MDU Resources (MDU) Q4 2025 Earnings Transcript
See More
MDU Resources Group Reports Q4 2025 Earnings Highlights
- Strong Financial Performance: MDU Resources Group reported full-year 2025 earnings of $190.4 million, or $0.93 per share, aligning with company guidance, demonstrating stability following its transition to a pure-play regulated energy delivery business.
- Capital Investment Plan Update: The company revised its capital investment plan for 2026-2030 to $3.1 billion, reflecting the accelerated acquisition of the Badger Wind Farm, which is expected to further drive future business growth.
- Sustained Customer Growth: MDU experienced a retail customer growth rate of 1.5%, aligning with its annual growth target of 1% to 2%, indicating the company's competitive position and solid customer base in the market.
- Optimistic Future Outlook: The 2026 EPS guidance is set between $0.93 and $1 per share, with a long-term EPS growth target of 6% to 8%, reflecting the company's confidence in its future growth strategy.
See More
