MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MLI - US6247561029 - Common Stock
134.51 USD
+0.08 (+0.06%)
136 USD
+1.49 (+1.11%)
Taking everything into account, MLI scores 8 out of 10 in our fundamental rating. MLI was compared to 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 overvalued while it is showing excellent growth. This is an interesting combination. This makes MLI very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- MLI had positive earnings in the past year.
- MLI had a positive operating cash flow in the past year.
- 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
- The Return On Assets of MLI (20.27%) is better than 98.48% of its industry peers.
- Looking at the Return On Equity, with a value of 24.40%, MLI belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 20.73%, MLI belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
- MLI had an Average Return On Invested Capital over the past 3 years of 25.47%. This 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's Profit Margin of 18.10% is amongst the best of the industry. MLI outperforms 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's Gross Margin of 29.47% is in line compared to the rest of the industry. MLI outperforms 46.97% of its industry peers.
- 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.
- MLI has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for MLI has been reduced compared to a year ago.
2.2 Solvency
- MLI has an Altman-Z score of 18.21. This indicates that MLI is financially healthy and has little risk of bankruptcy at the moment.
- MLI has a better Altman-Z score (18.21) than 96.97% of its industry peers.
- There is no outstanding debt for MLI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 18.21 |
ROIC/WACC2.15
WACC9.63%
2.3 Liquidity
- A Current Ratio of 4.82 indicates that MLI has no problem at all paying its short term obligations.
- MLI has a Current ratio of 4.82. This is amongst the best in the industry. MLI outperforms 91.67% of its industry peers.
- 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.
- MLI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.60% yearly.
- Looking at the last year, MLI shows a quite strong growth in Revenue. The Revenue has grown by 15.71% in the last year.
- Measured over the past years, MLI shows a quite strong growth in Revenue. The Revenue has been growing by 9.17% on average per year.
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.
- The Revenue is expected to grow by 8.13% on average over the next years. This is quite good.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.12, the valuation of MLI can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of MLI indicates a somewhat cheap valuation: MLI is cheaper than 73.48% of the companies listed in the same industry.
- MLI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 17.95, which indicates a rather expensive current valuation of MLI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MLI indicates a somewhat cheap valuation: MLI is cheaper than 73.48% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. MLI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
- MLI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MLI is cheaper than 64.39% of the companies in the same industry.
- 65.15% of the companies in the same industry are more expensive than MLI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.07 | ||
| EV/EBITDA | 14.07 |
4.3 Compensation for Growth
- The 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)0.56
PEG (5Y)0.5
EPS Next 2Y18.8%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.75%, MLI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.01, MLI pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, MLI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
- The dividend of MLI is nicely growing with an annual growth rate of 31.86%!
- 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%.