MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
USA - NYSE:MLI - US6247561029 - Common Stock
104.53 USD
-2.31 (-2.16%)
104.53 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. An interesting combination arises when we look at growth and value: MLI is growing strongly while it also seems undervalued. This makes MLI very considerable for value and 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.
MLI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MLI (20.27%) is better than 100.00% of its industry peers.
MLI has a Return On Equity of 24.40%. This is amongst the best in the industry. MLI outperforms 90.77% of its industry peers.
With an excellent Return On Invested Capital value of 20.73%, MLI belongs to the best of the industry, outperforming 96.92% 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 10.24%.
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 94.62% of its industry peers.
In the last couple of years the Profit Margin of MLI has grown nicely.
Looking at the Operating Margin, with a value of 21.48%, MLI belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of MLI has grown nicely.
With a Gross Margin value of 29.47%, MLI perfoms like the industry average, outperforming 46.92% of the companies in the same 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.
Compared to 1 year ago, MLI has less shares outstanding
Compared to 5 years ago, MLI has about the same amount of shares outstanding.
MLI has a better debt/assets ratio than last year.
2.2 Solvency
MLI has an Altman-Z score of 15.00. 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 15.00, MLI belongs to the top of the industry, outperforming 97.69% 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 | 15 |
ROIC/WACC2.18
WACC9.52%
2.3 Liquidity
A Current Ratio of 4.82 indicates that MLI has no problem at all paying its short term obligations.
MLI's Current ratio of 4.82 is amongst the best of the industry. MLI outperforms 92.31% 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 has a Quick ratio of 3.81. This is amongst the best in the industry. MLI outperforms 93.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.82 | ||
| Quick Ratio | 3.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.90% over the past year.
The Earnings Per Share has been growing by 42.60% on average over the past years. This is a very strong growth
The Revenue has grown by 15.71% in the past year. This is quite good.
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
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.
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 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
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
A Price/Earnings ratio of 16.41 indicates a correct valuation of MLI.
MLI's Price/Earnings ratio is a bit cheaper when compared to the industry. MLI is cheaper than 74.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of MLI to the average of the S&P500 Index (25.07), we can say MLI is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.95, MLI is valued correctly.
MLI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MLI is cheaper than 72.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MLI to the average of the S&P500 Index (34.08), we can say MLI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLI is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MLI is valued a bit cheaper than 71.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.11 | ||
| EV/EBITDA | 10.59 |
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)0.54
PEG (5Y)0.39
EPS Next 2Y18.8%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
MLI has a yearly dividend return of 0.93%, which is pretty low.
Compared to an average industry Dividend Yield of 1.87, MLI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.93, MLI pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
On average, the dividend of MLI grows each year by 31.86%, which is quite nice.
MLI has been paying a dividend for at least 10 years, so it has a reliable track record.
MLI has decreased its dividend 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%
104.53
-2.31 (-2.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.36%
Inst Owner Change3.07%
Ins Owners2.4%
Ins Owner Change-6.83%
Market Cap11.57B
Revenue(TTM)4.14B
Net Income(TTM)749.13M
Analysts83.33
Price Target133.11 (27.34%)
Short Float %1.93%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)13.97%
PT rev (3m)13.97%
EPS NQ rev (1m)10.9%
EPS NQ rev (3m)10.9%
EPS NY rev (1m)3.71%
EPS NY rev (3m)15.99%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 13.95 | ||
| P/S | 2.8 | ||
| P/FCF | 17.11 | ||
| P/OCF | 15.34 | ||
| P/B | 3.77 | ||
| P/tB | 4.67 | ||
| EV/EBITDA | 10.59 |
EPS(TTM)6.37
EY6.09%
EPS(NY)7.49
Fwd EY7.17%
FCF(TTM)6.11
FCFY5.85%
OCF(TTM)6.81
OCFY6.52%
SpS37.4
BVpS27.73
TBVpS22.4
PEG (NY)0.54
PEG (5Y)0.39
Graham Number63.05
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 |
F-Score8
WACC9.52%
ROIC/WACC2.18
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 7 / 10 to MUELLER INDUSTRIES INC (MLI). This can be considered as Undervalued.
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 16.41 and the Price/Book (PB) ratio is 3.77.
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%.