MUELLER INDUSTRIES INC (MLI)
US6247561029 - Common Stock
MLI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making MLI a very profitable company, without any liquidiy or solvency issues. MLI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MLI was profitable.
MLI had a positive operating cash flow in the past year.
MLI had positive earnings in each of the past 5 years.
In the past 5 years MLI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MLI (19.63%) is better than 99.23% of its industry peers.
The Return On Equity of MLI (23.43%) is better than 85.38% of its industry peers.
The Return On Invested Capital of MLI (20.25%) is better than 93.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MLI is significantly above the industry average of 10.78%.
The 3 year average ROIC (29.89%) for MLI is well above the current ROIC(20.25%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.63% | ||
| ROE | 23.43% | ||
| ROIC | 20.25% |
ROA(3y)26.1%
ROA(5y)18.96%
ROE(3y)33.63%
ROE(5y)26.91%
ROIC(3y)29.89%
ROIC(5y)23.22%
1.3 Margins
MLI has a better Profit Margin (17.22%) than 92.31% of its industry peers.
MLI's Profit Margin has improved in the last couple of years.
The Operating Margin of MLI (20.96%) is better than 91.54% of its industry peers.
In the last couple of years the Operating Margin of MLI has grown nicely.
Looking at the Gross Margin, with a value of 28.35%, MLI is in line with its industry, outperforming 49.23% of the companies in the same industry.
In the last couple of years the Gross Margin of MLI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.96% | ||
| PM (TTM) | 17.22% | ||
| GM | 28.35% |
OM growth 3Y31.53%
OM growth 5Y26.31%
PM growth 3Y44.7%
PM growth 5Y33.44%
GM growth 3Y17.01%
GM growth 5Y15.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MLI is creating value.
MLI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MLI has more shares outstanding
MLI has a better debt/assets ratio than last year.
2.2 Solvency
MLI has an Altman-Z score of 12.34. This indicates that MLI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.34, MLI belongs to the top of the industry, outperforming 93.08% of the companies in the same industry.
MLI has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
MLI's Debt to FCF ratio of 0.00 is amongst the best of the industry. MLI outperforms 95.38% of its industry peers.
MLI has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
MLI has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. MLI outperforms 85.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.34 |
ROIC/WACC2.21
WACC9.17%
2.3 Liquidity
MLI has a Current Ratio of 6.05. This indicates that MLI is financially healthy and has no problem in meeting its short term obligations.
MLI has a better Current ratio (6.05) than 93.08% of its industry peers.
A Quick Ratio of 5.06 indicates that MLI has no problem at all paying its short term obligations.
The Quick ratio of MLI (5.06) is better than 93.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.05 | ||
| Quick Ratio | 5.06 |
3. Growth
3.1 Past
MLI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.44%.
Measured over the past years, MLI shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.27% on average per year.
MLI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.35%.
The Revenue has been growing slightly by 6.40% on average over the past years.
EPS 1Y (TTM)-16.44%
EPS 3Y62.33%
EPS 5Y42.27%
EPS growth Q2Q-21.29%
Revenue 1Y (TTM)-16.35%
Revenue growth 3Y12.57%
Revenue growth 5Y6.4%
Revenue growth Q2Q-12.51%
3.2 Future
Based on estimates for the next years, MLI will show a very negative growth in Earnings Per Share. The EPS will decrease by -10.14% on average per year.
Based on estimates for the next years, MLI will show a small growth in Revenue. The Revenue will grow by 1.13% on average per year.
EPS Next Y-21.43%
EPS Next 2Y-10.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.04%
Revenue Next 2Y1.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MLI is valuated correctly with a Price/Earnings ratio of 12.42.
Based on the Price/Earnings ratio, MLI is valued cheaper than 83.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. MLI is valued rather cheaply when compared to this.
MLI is valuated correctly with a Price/Forward Earnings ratio of 15.39.
Based on the Price/Forward Earnings ratio, MLI is valued a bit cheaper than 70.77% of the companies in the same industry.
MLI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 15.39 |
4.2 Price Multiples
MLI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MLI is cheaper than 89.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MLI is valued cheaply inside the industry as 94.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.72 | ||
| EV/EBITDA | 7.09 |
4.3 Compensation for Growth
MLI has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MLI's earnings are expected to decrease with -10.14% in the coming years.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-10.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MLI has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
MLI's Dividend Yield is a higher than the industry average which is at 1.66.
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 | 1.36% |
5.2 History
The dividend of MLI is nicely growing with an annual growth rate of 24.21%!
MLI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)24.21%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
12.75% of the earnings are spent on dividend by MLI. This is a low number and sustainable payout ratio.
DP12.75%
EPS Next 2Y-10.14%
EPS Next 3YN/A
MUELLER INDUSTRIES INC
NYSE:MLI (5/17/2024, 7:13:31 PM)
After market: 57.51 0 (0%)57.51
-0.76 (-1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 15.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.63% | ||
| ROE | 23.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.96% | ||
| PM (TTM) | 17.22% | ||
| GM | 28.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.05 | ||
| Quick Ratio | 5.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-16.44%
EPS 3Y62.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y-21.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.35%
Revenue growth 3Y12.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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