MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MLI - US6247561029 - Common Stock
132.73 USD
-0.39 (-0.29%)
132.73 USD
0 (0%)
Overall MLI gets a fundamental rating of 8 out of 10. We evaluated MLI against 132 industry peers in the Machinery industry. MLI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MLI is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, MLI could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- MLI had positive earnings in the past year.
- In the past year MLI had a positive cash flow from operations.
- In the past 5 years MLI has always been profitable.
- In the past 5 years MLI always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 20.27%, MLI belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
- MLI's Return On Equity of 24.40% is amongst the best of the industry. MLI outperforms 91.67% of its industry peers.
- MLI has a Return On Invested Capital of 20.73%. This is amongst the best in the industry. MLI outperforms 95.45% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MLI is significantly above the industry average of 10.24%.
- The last Return On Invested Capital (20.73%) for MLI is well below the 3 year average (25.47%), which needs to be investigated, but indicates that MLI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.27% | ||
| ROE | 24.4% | ||
| ROIC | 20.73% |
ROA(3y)23.2%
ROA(5y)21.16%
ROE(3y)28.12%
ROE(5y)28.13%
ROIC(3y)25.47%
ROIC(5y)24.78%
1.3 Margins
- MLI has a better Profit Margin (18.10%) than 93.94% of its industry peers.
- MLI's Profit Margin has improved in the last couple of years.
- MLI has a Operating Margin of 21.48%. This is amongst the best in the industry. MLI outperforms 92.42% of its industry peers.
- In the last couple of years the Operating Margin of MLI has grown nicely.
- MLI has a Gross Margin (29.47%) which is comparable to the rest of the industry.
- MLI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.48% | ||
| PM (TTM) | 18.1% | ||
| GM | 29.47% |
OM growth 3Y8.37%
OM growth 5Y21.34%
PM growth 3Y8.89%
PM growth 5Y31.03%
GM growth 3Y7.95%
GM growth 5Y11.43%
2. Health
2.1 Basic Checks
- MLI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for MLI has been reduced compared to 1 year ago.
- The number of shares outstanding for MLI remains at a similar level compared to 5 years ago.
- MLI has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 18.03 indicates that MLI is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 18.03, MLI belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
- MLI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 18.03 |
ROIC/WACC2.12
WACC9.77%
2.3 Liquidity
- A Current Ratio of 4.82 indicates that MLI has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 4.82, MLI belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- A Quick Ratio of 3.81 indicates that MLI has no problem at all paying its short term obligations.
- The Quick ratio of MLI (3.81) is better than 92.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.82 | ||
| Quick Ratio | 3.81 |
3. Growth
3.1 Past
- MLI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.90%, which is quite impressive.
- Measured over the past years, MLI shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.60% on average per year.
- Looking at the last year, MLI shows a quite strong growth in Revenue. The Revenue has grown by 15.71% in the last year.
- MLI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.17% yearly.
EPS 1Y (TTM)24.9%
EPS 3Y8.81%
EPS 5Y42.6%
EPS Q2Q%31.08%
Revenue 1Y (TTM)15.71%
Revenue growth 3Y0%
Revenue growth 5Y9.17%
Sales Q2Q%8.02%
3.2 Future
- The Earnings Per Share is expected to grow by 12.67% on average over the next years. This is quite good.
- Based on estimates for the next years, MLI will show a quite strong growth in Revenue. The Revenue will grow by 8.13% on average per year.
EPS Next Y37.9%
EPS Next 2Y18.8%
EPS Next 3Y12.67%
EPS Next 5YN/A
Revenue Next Year12.05%
Revenue Next 2Y10.05%
Revenue Next 3Y8.13%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 20.84, MLI is valued on the expensive side.
- Based on the Price/Earnings ratio, MLI is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of MLI to the average of the S&P500 Index (27.21), we can say MLI is valued slightly cheaper.
- A Price/Forward Earnings ratio of 17.71 indicates a rather expensive valuation of MLI.
- Based on the Price/Forward Earnings ratio, MLI is valued a bit cheaper than the industry average as 73.48% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. MLI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.84 | ||
| Fwd PE | 17.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MLI is valued a bit cheaper than 65.91% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, MLI is valued a bit cheaper than 65.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.78 | ||
| EV/EBITDA | 13.88 |
4.3 Compensation for Growth
- MLI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- MLI has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as MLI's earnings are expected to grow with 12.67% in the coming years.
PEG (NY)0.55
PEG (5Y)0.49
EPS Next 2Y18.8%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
- MLI has a yearly dividend return of 0.75%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.01, MLI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.75, MLI pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
- On average, the dividend of MLI grows each year by 31.86%, which is quite nice.
- MLI has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of MLI decreased recently.
Dividend Growth(5Y)31.86%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 13.89% of the earnings are spent on dividend by MLI. This is a low number and sustainable payout ratio.
- The dividend of MLI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.89%
EPS Next 2Y18.8%
EPS Next 3Y12.67%
MUELLER INDUSTRIES INC / MLI FAQ
Can you provide the ChartMill fundamental rating for MUELLER INDUSTRIES INC?
ChartMill assigns a fundamental rating of 8 / 10 to MLI.
Can you provide the valuation status for MUELLER INDUSTRIES INC?
ChartMill assigns a valuation rating of 6 / 10 to MUELLER INDUSTRIES INC (MLI). This can be considered as Fairly Valued.
How profitable is MUELLER INDUSTRIES INC (MLI) stock?
MUELLER INDUSTRIES INC (MLI) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for MLI stock?
The Earnings per Share (EPS) of MUELLER INDUSTRIES INC (MLI) is expected to grow by 37.9% in the next year.
How sustainable is the dividend of MUELLER INDUSTRIES INC (MLI) stock?
The dividend rating of MUELLER INDUSTRIES INC (MLI) is 4 / 10 and the dividend payout ratio is 13.89%.