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MDU Resources GroupFRA:MRE -0.58%74 Gross Margin % is 33.93% as of Mar. 2026, which is 75% above its 10-year median of 19.42. GuruFocus rates FRA:MRE with a GF Score™ of 74/100 and a GF Value™ of €15.23 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 489 Utilities - Regulated companies, MDU Resources Group ranks better than 56.24% on this metric.
MDU Resources Group (FRA:MRE) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
MDU Resources Group had a gross margin of 33.93% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
MDU Resources Group Gross Margin % Related Terms
MDU Resources Group Gross Margin % Historical Data
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The historical data trend for MDU Resources Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:MRE vs SR, OGS, CPK: Gross Margin % Comparison
For the Utilities - Regulated Gas subindustry, MDU Resources Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MDU Resources Group Gross Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, MDU Resources Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MDU Resources Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
MDU Resources Group (FRA:MRE) has a Gross Margin % of 33.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on MDU Resources Group and its competitors. This is 75% above median its historical median of 19.42. Over the past decade, MDU Resources Group's Gross Margin % has ranged from 17.45 to 34.01. According to the industry distribution chart, MDU Resources Group ranks #214 out of 489 companies in the Utilities - Regulated industry, placing it in the top 43.8%.
Is MDU Resources Group's Gross Margin % too high?
MDU Resources Group's current Gross Margin % of 33.93% is 75% above median its 10-year median of 19.42. Over the past 10 years, this metric has ranged from a low of 17.45 to a high of 34.01. The Utilities - Regulated industry median Gross Margin % is 30.63. MDU Resources Group's value of 33.93% is 10.8% above this industry median. Based on the distribution chart, MDU Resources Group ranks #214 out of 489 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, MDU Resources Group has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MDU Resources Group's Gross Margin % compare to SR and OGS?
According to the Utilities - Regulated industry distribution chart, MDU Resources Group ranks #214 out of 489 companies for Gross Margin %. This puts MDU Resources Group in the upper half of its industry. The industry median Gross Margin % is 30.63. MDU Resources Group's value of 33.93% is 10.8% above this benchmark. Historically, MDU Resources Group's own Gross Margin % has ranged from 17.45 to 34.01 over the past decade. While the company's 10-year median is 19.42 vs. the industry median of 30.63, MDU Resources Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Utilities - Regulated company?
The median Gross Margin % among Utilities - Regulated companies is 30.63, based on 489 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MDU Resources Group's current Gross Margin % of 33.93% is 10.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on MDU Resources Group and its competitors. For the Utilities - Regulated industry, the median Gross Margin % is 30.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MDU Resources Group's current Gross Margin % is 33.93%, which is 75% above median its own 10-year median of 19.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MDU Resources Group stock overvalued right now?
Based on GuruFocus' analysis, MDU Resources Group (FRA:MRE) is currently considered Modestly Overvalued. The stock's GF Value™ is €15.23, compared to a current price of €17.20 — trading 12.9% above its estimated fair value. The current Gross Margin % is 33.93%, which is 75% above median its 10-year median of 19.42 and 10.8% above the Utilities - Regulated industry median of 30.63. MDU Resources Group's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For MDU Resources Group (FRA:MRE), the current Gross Margin % is 33.93% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MDU Resources Group (FRA:MRE) Overvalued in 2026?
Based on GuruFocus' analysis, MDU Resources Group stock appears to be overvalued.
The current stock price of €17.20 is trading 12.9% above its estimated GF Value™ of €15.23.
GuruFocus considers MDU Resources Group to be Modestly Overvalued.
Key valuation signals for FRA:MRE:
Gross Margin %: 33.93% (75% above median its 10-year median of 19.42)
GF Value™: €15.23 vs. price of €17.20 (12.9% above fair value)
Industry Position: 10.8% above the Utilities - Regulated median (#214 of 489)
No single metric tells the full story. See the FRA:MRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MDU Resources Group Inc is a pure-play regulated energy delivery business. It is organized into three reportable business segments: Electric, Natural Gas Distribution, and Pipeline. Maximum revenue is generated from the Pipeline segment, which provides natural gas transportation and underground storage services through a FERC-regulated pipeline system mainly in the Rocky Mountain and northern Great Plains regions of the United States. This segment also provides non-regulated energy-related services, including cathodic protection. The electric segment generates, transmits, and distributes electricity in Montana, North Dakota, South Dakota, and Wyoming, and the natural gas distribution segment distributes natural gas in those states, as well as in Idaho, Minnesota, Oregon, and Washington.
74GF Score
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