Is MUELLER INDUSTRIES INC (NYSE:MLI) suited for quality investing?

In this article we will dive into MUELLER INDUSTRIES INC (NYSE:MLI) as a possible candidate for quality investing. Investors should always do their own research, but we noticed MUELLER INDUSTRIES INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of MLI highlighted

• Over the past 5 years, MLI has experienced impressive revenue growth, with 9.17% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• MLI demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 46.78% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 0.0, MLI exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• The Profit Quality (5-year) of MLI stands at 101.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• MLI has experienced impressive EBIT growth over the past 5 years, with 32.46% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• MLI demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 8 out of 10 to MLI. MLI was compared to 128 industry peers in the Machinery industry. MLI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MLI is not valued too expensively and it also shows a decent growth rate. These ratings would make MLI suitable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of MLI

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.