MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MLI - US6247561029 - Common Stock
119.22 USD
+2.41 (+2.06%)
119.22 USD
0 (0%)
MLI gets a fundamental rating of 8 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make MLI a good candidate 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.
Each year in the past 5 years MLI had a positive operating cash flow.
1.2 Ratios
MLI has a better Return On Assets (20.27%) than 98.48% of its industry peers.
The Return On Equity of MLI (24.40%) is better than 91.67% of its industry peers.
With an excellent Return On Invested Capital value of 20.73%, MLI belongs to the best 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 10.21%.
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
The Profit Margin of MLI (18.10%) is better than 93.94% of its industry peers.
MLI's Profit Margin has improved in the last couple of years.
The Operating Margin of MLI (21.48%) is better than 93.18% of its industry peers.
MLI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 29.47%, MLI perfoms like the industry average, outperforming 46.97% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MLI 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.
MLI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 16.59 indicates that MLI is not in any danger for bankruptcy at the moment.
The Altman-Z score of MLI (16.59) is better than 96.97% of its industry peers.
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 | 16.59 |
ROIC/WACC2.15
WACC9.65%
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 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.
MLI's Quick ratio of 3.81 is amongst the best of the industry. MLI outperforms 92.42% 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.
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.
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.
MLI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.13% yearly.
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.
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
MLI is valuated rather expensively with a Price/Earnings ratio of 18.72.
MLI's Price/Earnings ratio is a bit cheaper when compared to the industry. MLI is cheaper than 76.52% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.87. MLI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.91, MLI is valued correctly.
MLI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MLI is cheaper than 78.03% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, MLI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 15.91 |
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 68.94% of the companies listed in the same industry.
MLI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MLI is cheaper than 71.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.56 | ||
| EV/EBITDA | 12.32 |
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.
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)0.62
PEG (5Y)0.44
EPS Next 2Y18.8%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, MLI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.85, MLI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.87, MLI pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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%
119.22
+2.41 (+2.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.14%
Inst Owner Change0%
Ins Owners2.21%
Ins Owner Change-4.34%
Market Cap13.23B
Revenue(TTM)4.14B
Net Income(TTM)749.13M
Analysts83.33
Price Target133.11 (11.65%)
Short Float %2.17%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend0.78
Dividend Growth(5Y)31.86%
DP13.89%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0%
EPS NY rev (3m)3.71%
Revenue NQ rev (1m)-4.53%
Revenue NQ rev (3m)-5.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 15.91 | ||
| P/S | 3.2 | ||
| P/FCF | 19.56 | ||
| P/OCF | 17.54 | ||
| P/B | 4.31 | ||
| P/tB | 5.34 | ||
| EV/EBITDA | 12.32 |
EPS(TTM)6.37
EY5.34%
EPS(NY)7.49
Fwd EY6.29%
FCF(TTM)6.09
FCFY5.11%
OCF(TTM)6.8
OCFY5.7%
SpS37.29
BVpS27.65
TBVpS22.34
PEG (NY)0.62
PEG (5Y)0.44
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 | 16.59 |
F-Score8
WACC9.65%
ROIC/WACC2.15
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 Year65.07%
EBIT Next 3Y19.24%
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.
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 30.39% 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%.