NYSE:MLI, an undervalued stock with good fundamentals.

MUELLER INDUSTRIES INC (NYSE:MLI) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:MLI showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

A Closer Look at Valuation for NYSE:MLI

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:MLI has earned a 7 for valuation:

• 78.57% of the companies in the same industry are more expensive than MLI, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 28.36, MLI is valued a bit cheaper.
• 82.54% of the companies in the same industry are more expensive than MLI, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 92.49. MLI is valued rather cheaply when compared to this.
• Based on the Enterprise Value to EBITDA ratio, MLI is valued a bit cheaper than 76.19% of the companies in the same industry.
• MLI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MLI is cheaper than 87.30% of the companies in the same industry.
• MLI has an outstanding profitability rating, which may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:MLI?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:MLI has achieved a 9:

• MLI has a Return On Assets of 18.29%. This is amongst the best in the industry. MLI outperforms 96.83% of its industry peers.
• MLI has a better Return On Equity (21.90%) than 83.33% of its industry peers.
• The Return On Invested Capital of MLI (19.30%) is better than 94.44% of its industry peers.
• MLI had an Average Return On Invested Capital over the past 3 years of 29.89%. This is significantly above the industry average of 11.07%.
• The 3 year average ROIC (29.89%) for MLI is well above the current ROIC(19.30%). The reason for the recent decline needs to be investigated.
• The Profit Margin of MLI (16.39%) is better than 92.06% of its industry peers.
• In the last couple of years the Profit Margin of MLI has grown nicely.
• MLI's Operating Margin of 20.44% is amongst the best of the industry. MLI outperforms 88.89% of its industry peers.
• MLI's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of MLI has grown nicely.

ChartMill's Evaluation of Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:MLI has earned a 9 out of 10:

• MLI has an Altman-Z score of 13.83. This indicates that MLI is financially healthy and has little risk of bankruptcy at the moment.
• MLI's Altman-Z score of 13.83 is amongst the best of the industry. MLI outperforms 92.86% of its industry peers.
• MLI has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
• The Debt to FCF ratio of MLI (0.00) is better than 95.24% of its industry peers.
• MLI has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
• The Debt to Equity ratio of MLI (0.00) is better than 85.71% of its industry peers.
• A Current Ratio of 4.86 indicates that MLI has no problem at all paying its short term obligations.
• MLI has a better Current ratio (4.86) than 90.48% of its industry peers.
• MLI has a Quick Ratio of 3.85. This indicates that MLI is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of MLI (3.85) is better than 92.06% of its industry peers.

Deciphering NYSE:MLI's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:MLI scores a 5 out of 10:

• MLI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.27% yearly.
• Based on estimates for the next years, MLI will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.07% on average per year.
• The Revenue is expected to grow by 10.69% on average over the next years. This is quite good.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of MLI for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.