MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
NYSE:MLI - New York Stock Exchange, Inc. - US6247561029 - Common Stock - Currency: USD
Taking everything into account, MLI scores 8 out of 10 in our fundamental rating. MLI was compared to 128 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 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.
MLI had positive earnings in each of the past 5 years.
Each year in the past 5 years MLI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 19.31%, MLI belongs to the top of the industry, outperforming 97.66% of the companies in the same industry.
With an excellent Return On Equity value of 23.40%, MLI belongs to the best of the industry, outperforming 88.28% of the companies in the same industry.
With an excellent Return On Invested Capital value of 20.77%, MLI belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MLI is significantly above the industry average of 10.71%.
The last Return On Invested Capital (20.77%) 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 | 19.31% | ||
| ROE | 23.4% | ||
| ROIC | 20.77% |
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 Profit Margin of 15.92%. This is amongst the best in the industry. MLI outperforms 90.63% of its industry peers.
In the last couple of years the Profit Margin of MLI has grown nicely.
The Operating Margin of MLI (19.76%) is better than 88.28% of its industry peers.
MLI's Operating Margin has improved in the last couple of years.
The Gross Margin of MLI (27.44%) 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 | 19.76% | ||
| PM (TTM) | 15.92% | ||
| GM | 27.44% |
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.
Compared to 1 year ago, MLI has less shares outstanding
MLI has about the same amout of shares outstanding than it did 5 years ago.
MLI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 13.68 indicates that MLI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.68, MLI belongs to the best of the industry, outperforming 95.31% 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 | 13.68 |
ROIC/WACC2.1
WACC9.88%
2.3 Liquidity
A Current Ratio of 4.29 indicates that MLI has no problem at all paying its short term obligations.
MLI has a better Current ratio (4.29) than 89.06% of its industry peers.
MLI has a Quick Ratio of 3.24. This indicates that MLI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of MLI (3.24) is better than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.29 | ||
| Quick Ratio | 3.24 |
3. Growth
3.1 Past
MLI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.58%, 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 18.81% in the last year.
The Revenue has been growing by 9.17% on average over the past years. This is quite good.
EPS 1Y (TTM)24.58%
EPS 3Y8.81%
EPS 5Y42.6%
EPS Q2Q%4.13%
Revenue 1Y (TTM)18.81%
Revenue growth 3Y0%
Revenue growth 5Y9.17%
Sales Q2Q%17.71%
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 14.15% on average per year.
MLI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.34% yearly.
EPS Next Y14.12%
EPS Next 2Y14.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.95%
Revenue Next 2Y10.34%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 15.42 indicates a correct valuation of MLI.
Based on the Price/Earnings ratio, MLI is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
MLI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.94 indicates a reasonable valuation of MLI.
Based on the Price/Forward Earnings ratio, MLI is valued cheaper than 85.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MLI to the average of the S&P500 Index (21.90), we can say MLI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLI is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MLI indicates a somewhat cheap valuation: MLI is cheaper than 70.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.09 | ||
| EV/EBITDA | 9.85 |
4.3 Compensation for Growth
MLI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MLI has an outstanding profitability rating, which may justify a higher PE ratio.
MLI's earnings are expected to grow with 14.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)0.36
EPS Next 2Y14.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MLI has a Yearly Dividend Yield of 1.21%.
Compared to an average industry Dividend Yield of 1.83, MLI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.21, MLI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of MLI is nicely growing with an annual growth rate of 31.86%!
MLI has been paying a dividend for at least 10 years, so it has 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 15.08% of its income as dividend. This is a sustainable payout ratio.
The dividend of MLI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP15.08%
EPS Next 2Y14.15%
EPS Next 3YN/A
82.64
-0.51 (-0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner Change-0.61%
Ins Owners2.45%
Ins Owner Change-3.69%
Market Cap9.14B
Analysts83.33
Price Target112.2 (35.77%)
Short Float %3.66%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend0.78
Dividend Growth(5Y)31.86%
DP15.08%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.1%
Min EPS beat(2)-4.77%
Max EPS beat(2)6.97%
EPS beat(4)3
Avg EPS beat(4)5.36%
Min EPS beat(4)-4.77%
Max EPS beat(4)11.01%
EPS beat(8)6
Avg EPS beat(8)24.03%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)2.4%
Revenue beat(4)3
Avg Revenue beat(4)3.78%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)8.44%
Revenue beat(8)5
Avg Revenue beat(8)2.9%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.76%
PT rev (3m)4.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.53%
EPS NY rev (1m)0%
EPS NY rev (3m)6.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 11.94 | ||
| P/S | 2.33 | ||
| P/FCF | 18.09 | ||
| P/OCF | 15.61 | ||
| P/B | 3.43 | ||
| P/tB | 4.45 | ||
| EV/EBITDA | 9.85 |
EPS(TTM)5.36
EY6.49%
EPS(NY)6.92
Fwd EY8.37%
FCF(TTM)4.57
FCFY5.53%
OCF(TTM)5.29
OCFY6.41%
SpS35.42
BVpS24.1
TBVpS18.56
PEG (NY)1.09
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.31% | ||
| ROE | 23.4% | ||
| ROCE | 27.9% | ||
| ROIC | 20.77% | ||
| ROICexc | 30.31% | ||
| ROICexgc | 44.73% | ||
| OM | 19.76% | ||
| PM (TTM) | 15.92% | ||
| GM | 27.44% | ||
| FCFM | 12.9% |
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%
ROICexcg growth 3Y2.37%
ROICexcg 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-Score5
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 131.25% | ||
| Cap/Sales | 2.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.12% | ||
| Profit Quality | 81.01% | ||
| Current Ratio | 4.29 | ||
| Quick Ratio | 3.24 | ||
| Altman-Z | 13.68 |
F-Score5
WACC9.88%
ROIC/WACC2.1
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)24.58%
EPS 3Y8.81%
EPS 5Y42.6%
EPS Q2Q%4.13%
EPS Next Y14.12%
EPS Next 2Y14.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.81%
Revenue growth 3Y0%
Revenue growth 5Y9.17%
Sales Q2Q%17.71%
Revenue Next Year12.95%
Revenue Next 2Y10.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.99%
EBIT growth 3Y8.36%
EBIT growth 5Y32.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-31.01%
FCF growth 3Y26.43%
FCF growth 5Y27.29%
OCF growth 1Y-24.17%
OCF growth 3Y27.49%
OCF growth 5Y26.36%