CluenexMDU Resources MDU
MDU Resources scores weak on business quality (3.7 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What MDU Resources does
MDU Resources generates revenue by providing regulated energy delivery through electric and natural gas utilities to customers primarily across the upper Midwest. The company is leaning into large-scale infrastructure growth, highlighted by WBI Energy reaching a positive final investment decision on the 350-mile Bakken East Pipeline.
- What it does best
MDU anchors its regulated utility footprint on regional energy transmission, capturing steady local demand. Its gross margin of 58.7% sits below peer NFG's 87.8%, reflecting its heavier asset-building footprint rather than pure distribution margins.
- The main risk
Heavy capital expenditure commitments threaten cash stability, driven by major projects like the Bakken East Pipeline. Free cash flow sits at negative $386.0M while capex reached $790.0M, increasing reliance on debt financing.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 17.0% while FCF margin is deeply negative due to a $790.0M capex load. Profitability is compressing as aggressive infrastructure investments outpace current operational cash generation.
The utility business model locks in regional consumers through regulated monopoly service territories. Operating margin of 17.0% places the firm in the bottom quartile of its sector at the 17th percentile, limiting the economic moat's power.
Revenue grew 6.7% to $1.83B, showing a mild bounce compared to prior years. However, its revenue growth ranks in the bottom quartile of its sector at the 37th percentile, signaling slow organic expansion overall.
Total debt sits at $2.68B against $13.0M in cash, resulting in a debt-to-equity ratio of 1.0. Interest coverage of 2.6x leaves a narrow margin for error, and free cash flow of negative $386.0M indicates the balance sheet is softening under heavy capex.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on MDU
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
MDU Resources scores weak on the Cluenex quality check (3.7 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 29, 2026.
See MDU today
- Today's verdict on MDU, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “MDU Resources (MDU)”, https://cluenex.com/stocks/mdu/, data as of Oct 10, 2026.