Is MDU a high-quality business?

AlphaMadera's AlphaQuality grade scores MDU Resources Group, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how MDU compares to a Buffett-style quality bar.

What is MDU Resources Group, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to MDU based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes MDU a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

MDU - MDU Resources Group, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $21.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

D 33.3 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C 53.7

5yr Avg ROIC 5.4% 37/100
Operating Margin Trend +1.54 pp/yr 93/100

Capital Efficiency

Weight: 15%

B- 65.0

5yr Avg ROE 11.8% 69/100
5yr Share-Count CAGR 0.4% 58/100

Growth Quality

Weight: 15%

F 8.0

5yr Revenue CAGR -14.2% 0/100
5yr EPS CAGR -16.0% 0/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

F 0.3

5yr FCF Margin -4.9% 1/100
5yr FCF/NI Conversion -0.40x 0/100

Balance Sheet

Weight: 20%

F 24.1

Net Debt / EBITDA 5.16x 14/100
Interest Coverage (EBIT/Int) 2.96x 44/100
Altman Z-Score 1.14 18/100

Stability

Weight: 15%

C- 45.6

EPS Volatility (σ/μ) 0.35 49/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 3/5 40/100

3 of 3 gurus held; 2 added; 1 trimmed.

Holders: 3 +1
Avg Δ position: +1348.0%
New buys: 0
Full exits: 0

Cooperman increased +2698%
Greenblatt decreased -2%
Dalio increased

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.