MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MLI - US6247561029 - Common Stock
124.4 USD
+0.8 (+0.65%)
124.4 USD
0 (0%)
Taking everything into account, MLI scores 8 out of 10 in our fundamental rating. MLI was compared to 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 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.
MLI had a positive operating cash flow in the past year.
In the past 5 years MLI has always been profitable.
In the past 5 years MLI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.27%, MLI belongs to the top of the industry, outperforming 98.48% of the companies in the same industry.
MLI has a Return On Equity of 24.40%. This is amongst the best in the industry. MLI outperforms 91.67% of its industry peers.
MLI has a better Return On Invested Capital (20.73%) than 95.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MLI is significantly above the industry average of 10.25%.
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
With an excellent Profit Margin value of 18.10%, MLI belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
MLI's Profit Margin has improved in the last couple of years.
The Operating Margin of MLI (21.48%) is better than 92.42% of its industry peers.
In the last couple of years the Operating Margin of MLI has grown nicely.
MLI has a Gross Margin of 29.47%. This is comparable to the rest of the industry: MLI outperforms 46.97% of its industry peers.
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
MLI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MLI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MLI remains at a similar level compared to 5 years ago.
Compared to 1 year ago, MLI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 17.06 indicates that MLI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 17.06, MLI belongs to the top of the industry, outperforming 96.97% 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 | 17.06 |
ROIC/WACC2.19
WACC9.48%
2.3 Liquidity
MLI has a Current Ratio of 4.82. This indicates that MLI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.82, MLI belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
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 better Quick ratio (3.81) than 92.42% 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.
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 15.71% in the last year.
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
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
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
With a Price/Earnings ratio of 19.53, MLI is valued on the expensive side.
Based on the Price/Earnings ratio, MLI is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.25. MLI is valued slightly cheaper when compared to this.
MLI is valuated correctly with a Price/Forward Earnings ratio of 16.60.
MLI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MLI is cheaper than 79.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, MLI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.53 | ||
| Fwd PE | 16.6 |
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 68.18% 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 71.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.41 | ||
| EV/EBITDA | 12.82 |
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.
MLI's earnings are expected to grow with 12.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)0.46
EPS Next 2Y18.8%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, MLI is not a good candidate for dividend investing.
MLI's Dividend Yield is a higher than the industry average which is at 0.80.
With a Dividend Yield of 0.82, MLI pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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
13.89% of the earnings are spent on dividend by MLI. This is a low number and 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%
124.4
+0.8 (+0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.14%
Inst Owner Change0.16%
Ins Owners2.21%
Ins Owner Change-4.34%
Market Cap13.81B
Revenue(TTM)4.14B
Net Income(TTM)749.13M
Analysts83.33
Price Target133.11 (7%)
Short Float %2.17%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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 | 19.53 | ||
| Fwd PE | 16.6 | ||
| P/S | 3.34 | ||
| P/FCF | 20.41 | ||
| P/OCF | 18.31 | ||
| P/B | 4.5 | ||
| P/tB | 5.57 | ||
| EV/EBITDA | 12.82 |
EPS(TTM)6.37
EY5.12%
EPS(NY)7.49
Fwd EY6.02%
FCF(TTM)6.09
FCFY4.9%
OCF(TTM)6.8
OCFY5.46%
SpS37.29
BVpS27.65
TBVpS22.34
PEG (NY)0.64
PEG (5Y)0.46
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 | 17.06 |
F-Score8
WACC9.48%
ROIC/WACC2.19
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%.