MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MLI - US6247561029 - Common Stock
113.02 USD
+1.42 (+1.27%)
113.02 USD
0 (0%)
We assign a fundamental rating of 8 out of 10 to MLI. MLI was compared to 130 industry peers in the Machinery industry. MLI gets an excellent profitability rating and is at the same time showing great financial health properties. MLI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make MLI suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year MLI was profitable.
MLI had a positive operating cash flow in the past year.
In the past 5 years MLI has always been profitable.
MLI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MLI's Return On Assets of 20.27% is amongst the best of the industry. MLI outperforms 99.23% of its industry peers.
MLI's Return On Equity of 24.40% is amongst the best of the industry. MLI outperforms 90.77% of its industry peers.
MLI has a better Return On Invested Capital (20.73%) than 96.15% of its industry peers.
MLI had an Average Return On Invested Capital over the past 3 years of 25.47%. This is significantly above the industry average of 10.39%.
The 3 year average ROIC (25.47%) for MLI is well above the current ROIC(20.73%). The reason for the recent decline needs to be investigated.
| 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 94.62% of its industry peers.
MLI's Profit Margin has improved in the last couple of years.
MLI has a better Operating Margin (21.48%) than 93.08% of its industry peers.
MLI's Operating Margin has improved in the last couple of years.
MLI has a Gross Margin (29.47%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MLI has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MLI is creating value.
Compared to 1 year ago, MLI has less shares outstanding
Compared to 5 years ago, MLI has about the same amount of shares outstanding.
Compared to 1 year ago, MLI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 15.78 indicates that MLI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.78, MLI belongs to the top of the industry, outperforming 97.69% of the companies in the same industry.
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 | 15.78 |
ROIC/WACC2.21
WACC9.38%
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 better Current ratio (4.82) than 90.77% of its industry peers.
MLI has a Quick Ratio of 3.81. This indicates that MLI is financially healthy and has no problem in meeting its short term obligations.
MLI's Quick ratio of 3.81 is amongst the best of the industry. MLI outperforms 91.54% 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.
The Revenue has grown by 15.71% in the past year. This is quite good.
The Revenue has been growing by 9.17% on average over the past years. This is quite good.
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
Based on estimates for the next years, MLI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.67% on average per year.
The Revenue is expected to grow by 8.13% on average over the next years. This is quite good.
EPS Next Y30.39%
EPS Next 2Y18.8%
EPS Next 3Y12.67%
EPS Next 5YN/A
Revenue Next Year12.5%
Revenue Next 2Y10.2%
Revenue Next 3Y8.13%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
MLI is valuated rather expensively with a Price/Earnings ratio of 17.74.
Compared to the rest of the industry, the Price/Earnings ratio of MLI indicates a somewhat cheap valuation: MLI is cheaper than 76.92% of the companies listed in the same industry.
MLI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.41.
With a Price/Forward Earnings ratio of 15.08, MLI is valued correctly.
74.62% of the companies in the same industry are more expensive than MLI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MLI to the average of the S&P500 Index (35.40), we can say MLI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 15.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MLI indicates a somewhat cheap valuation: MLI is cheaper than 70.77% of the companies listed in the same industry.
71.54% 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 | 18.55 | ||
| EV/EBITDA | 11.44 |
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.
The excellent profitability rating of MLI 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)0.58
PEG (5Y)0.42
EPS Next 2Y18.8%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, MLI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.90, MLI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, MLI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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
MLI pays out 13.89% of its income as dividend. This is a sustainable payout ratio.
MLI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.89%
EPS Next 2Y18.8%
EPS Next 3Y12.67%
113.02
+1.42 (+1.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.36%
Inst Owner Change3.03%
Ins Owners2.4%
Ins Owner Change-5.03%
Market Cap12.55B
Revenue(TTM)4.14B
Net Income(TTM)749.13M
Analysts83.33
Price Target133.11 (17.78%)
Short Float %1.88%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend0.78
Dividend Growth(5Y)31.86%
DP13.89%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.73%
Min EPS beat(2)7.31%
Max EPS beat(2)20.16%
EPS beat(4)3
Avg EPS beat(4)7.42%
Min EPS beat(4)-4.77%
Max EPS beat(4)20.16%
EPS beat(8)7
Avg EPS beat(8)14.41%
EPS beat(12)10
Avg EPS beat(12)24.5%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)0.63%
Revenue beat(4)2
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)2.4%
Revenue beat(8)5
Avg Revenue beat(8)1.68%
Revenue beat(12)7
Avg Revenue beat(12)1.91%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)13.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.9%
EPS NY rev (1m)3.71%
EPS NY rev (3m)3.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 15.08 | ||
| P/S | 3.03 | ||
| P/FCF | 18.55 | ||
| P/OCF | 16.63 | ||
| P/B | 4.09 | ||
| P/tB | 5.06 | ||
| EV/EBITDA | 11.44 |
EPS(TTM)6.37
EY5.64%
EPS(NY)7.49
Fwd EY6.63%
FCF(TTM)6.09
FCFY5.39%
OCF(TTM)6.8
OCFY6.01%
SpS37.29
BVpS27.65
TBVpS22.34
PEG (NY)0.58
PEG (5Y)0.42
Graham Number62.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.27% | ||
| ROE | 24.4% | ||
| ROCE | 27.85% | ||
| ROIC | 20.73% | ||
| ROICexc | 35.26% | ||
| ROICexgc | 51.41% | ||
| OM | 21.48% | ||
| PM (TTM) | 18.1% | ||
| GM | 29.47% | ||
| FCFM | 16.34% |
ROA(3y)23.2%
ROA(5y)21.16%
ROE(3y)28.12%
ROE(5y)28.13%
ROIC(3y)25.47%
ROIC(5y)24.78%
ROICexc(3y)43.75%
ROICexc(5y)36.53%
ROICexgc(3y)55.94%
ROICexgc(5y)46.4%
ROCE(3y)34.22%
ROCE(5y)33.28%
ROICexgc growth 3Y2.37%
ROICexgc growth 5Y22.58%
ROICexc growth 3Y-4.41%
ROICexc growth 5Y18.23%
OM growth 3Y8.37%
OM growth 5Y21.34%
PM growth 3Y8.89%
PM growth 5Y31.03%
GM growth 3Y7.95%
GM growth 5Y11.43%
F-Score8
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 105.45% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.33% | ||
| Profit Quality | 90.3% | ||
| Current Ratio | 4.82 | ||
| Quick Ratio | 3.81 | ||
| Altman-Z | 15.78 |
F-Score8
WACC9.38%
ROIC/WACC2.21
Cap/Depr(3y)124%
Cap/Depr(5y)108.01%
Cap/Sales(3y)1.55%
Cap/Sales(5y)1.47%
Profit Quality(3y)100.14%
Profit Quality(5y)100.88%
High Growth Momentum
Growth
EPS 1Y (TTM)24.9%
EPS 3Y8.81%
EPS 5Y42.6%
EPS Q2Q%31.08%
EPS Next Y30.39%
EPS Next 2Y18.8%
EPS Next 3Y12.67%
EPS Next 5YN/A
Revenue 1Y (TTM)15.71%
Revenue growth 3Y0%
Revenue growth 5Y9.17%
Sales Q2Q%8.02%
Revenue Next Year12.5%
Revenue Next 2Y10.2%
Revenue Next 3Y8.13%
Revenue Next 5YN/A
EBIT growth 1Y21.57%
EBIT growth 3Y8.36%
EBIT growth 5Y32.46%
EBIT Next Year48.57%
EBIT Next 3Y16.75%
EBIT Next 5YN/A
FCF growth 1Y2.81%
FCF growth 3Y26.43%
FCF growth 5Y27.29%
OCF growth 1Y6.92%
OCF growth 3Y27.49%
OCF growth 5Y26.36%
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.
What is the valuation status for MLI stock?
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.
What is the valuation of MUELLER INDUSTRIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MUELLER INDUSTRIES INC (MLI) is 17.74 and the Price/Book (PB) ratio is 4.09.
Can you provide the dividend sustainability for MLI stock?
The dividend rating of MUELLER INDUSTRIES INC (MLI) is 4 / 10 and the dividend payout ratio is 13.89%.