MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
USA - NYSE:MLI - US6247561029 - Common Stock
98.57 USD
0 (0%)
98.57 USD
0 (0%)
Overall MLI gets a fundamental rating of 8 out of 10. We evaluated MLI against 129 industry peers in the Machinery industry. MLI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MLI is not valued too expensively and it also shows a decent growth rate. These ratings would make MLI suitable for 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.
Each year in the past 5 years MLI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MLI (20.35%) is better than 99.22% of its industry peers.
MLI has a better Return On Equity (24.33%) than 90.70% of its industry peers.
With an excellent Return On Invested Capital value of 20.43%, MLI belongs to the best of the industry, outperforming 96.90% 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 10.01%.
The 3 year average ROIC (25.47%) for MLI is well above the current ROIC(20.43%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.35% | ||
| ROE | 24.33% | ||
| ROIC | 20.43% |
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 17.48%. This is amongst the best in the industry. MLI outperforms 94.57% of its industry peers.
In the last couple of years the Profit Margin of MLI has grown nicely.
MLI has a better Operating Margin (20.49%) than 90.70% of its industry peers.
MLI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 28.47%, MLI is in line with its industry, outperforming 44.19% 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 | 20.49% | ||
| PM (TTM) | 17.48% | ||
| GM | 28.47% |
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.
MLI has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, MLI has an improved debt to assets ratio.
2.2 Solvency
MLI has an Altman-Z score of 15.41. This indicates that MLI is financially healthy and has little risk of bankruptcy at the moment.
MLI has a better Altman-Z score (15.41) than 96.12% 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 | 15.41 |
ROIC/WACC2.16
WACC9.46%
2.3 Liquidity
A Current Ratio of 4.86 indicates that MLI has no problem at all paying its short term obligations.
The Current ratio of MLI (4.86) is better than 92.25% of its industry peers.
MLI has a Quick Ratio of 3.73. This indicates that MLI is financially healthy and has no problem in meeting its short term obligations.
MLI has a better Quick ratio (3.73) than 93.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.86 | ||
| Quick Ratio | 3.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.13% 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
Looking at the last year, MLI shows a quite strong growth in Revenue. The Revenue has grown by 19.42% 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)23.13%
EPS 3Y8.81%
EPS 5Y42.6%
EPS Q2Q%39.01%
Revenue 1Y (TTM)19.42%
Revenue growth 3Y0%
Revenue growth 5Y9.17%
Sales Q2Q%14.07%
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 10.17% on average per year.
MLI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.57% yearly.
EPS Next Y25.73%
EPS Next 2Y12.97%
EPS Next 3Y10.17%
EPS Next 5YN/A
Revenue Next Year12.11%
Revenue Next 2Y9.77%
Revenue Next 3Y7.57%
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.
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
The Price/Earnings ratio is 16.68, which indicates a correct valuation of MLI.
Based on the Price/Earnings ratio, MLI is valued a bit cheaper than 77.52% of the companies in the same industry.
When comparing the Price/Earnings ratio of MLI to the average of the S&P500 Index (27.40), we can say MLI is valued slightly cheaper.
MLI is valuated correctly with a Price/Forward Earnings ratio of 14.54.
MLI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MLI is cheaper than 78.29% of the companies in the same industry.
MLI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLI is valued a bit cheaper than the industry average as 73.64% of the companies are valued more expensively.
MLI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MLI is cheaper than 70.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.48 | ||
| EV/EBITDA | 10.87 |
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.
PEG (NY)0.65
PEG (5Y)0.39
EPS Next 2Y12.97%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, MLI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.82, MLI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.01, MLI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
13.95% 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.
DP13.95%
EPS Next 2Y12.97%
EPS Next 3Y10.17%
98.57
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners89.36%
Inst Owner Change0.02%
Ins Owners2.4%
Ins Owner Change0.64%
Market Cap10.91B
Analysts83.33
Price Target116.79 (18.48%)
Short Float %1.97%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend0.78
Dividend Growth(5Y)31.86%
DP13.95%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.7%
Min EPS beat(2)-4.77%
Max EPS beat(2)20.16%
EPS beat(4)3
Avg EPS beat(4)8.34%
Min EPS beat(4)-4.77%
Max EPS beat(4)20.16%
EPS beat(8)7
Avg EPS beat(8)29.64%
EPS beat(12)10
Avg EPS beat(12)25.17%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)0.63%
Revenue beat(4)3
Avg Revenue beat(4)1.83%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)5.55%
Revenue beat(8)6
Avg Revenue beat(8)4.75%
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)0%
PT rev (3m)4.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)0%
EPS NY rev (3m)11.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 14.54 | ||
| P/S | 2.69 | ||
| P/FCF | 18.48 | ||
| P/OCF | 16.15 | ||
| P/B | 3.74 | ||
| P/tB | 4.7 | ||
| EV/EBITDA | 10.87 |
EPS(TTM)5.91
EY6%
EPS(NY)6.78
Fwd EY6.88%
FCF(TTM)5.33
FCFY5.41%
OCF(TTM)6.1
OCFY6.19%
SpS36.67
BVpS26.35
TBVpS20.96
PEG (NY)0.65
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.35% | ||
| ROE | 24.33% | ||
| ROCE | 27.44% | ||
| ROIC | 20.43% | ||
| ROICexc | 31.39% | ||
| ROICexgc | 44.97% | ||
| OM | 20.49% | ||
| PM (TTM) | 17.48% | ||
| GM | 28.47% | ||
| FCFM | 14.54% |
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-Score8
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 123.51% | ||
| Cap/Sales | 2.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75% | ||
| Profit Quality | 83.19% | ||
| Current Ratio | 4.86 | ||
| Quick Ratio | 3.73 | ||
| Altman-Z | 15.41 |
F-Score8
WACC9.46%
ROIC/WACC2.16
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)23.13%
EPS 3Y8.81%
EPS 5Y42.6%
EPS Q2Q%39.01%
EPS Next Y25.73%
EPS Next 2Y12.97%
EPS Next 3Y10.17%
EPS Next 5YN/A
Revenue 1Y (TTM)19.42%
Revenue growth 3Y0%
Revenue growth 5Y9.17%
Sales Q2Q%14.07%
Revenue Next Year12.11%
Revenue Next 2Y9.77%
Revenue Next 3Y7.57%
Revenue Next 5YN/A
EBIT growth 1Y17.13%
EBIT growth 3Y8.36%
EBIT growth 5Y32.46%
EBIT Next Year48.57%
EBIT Next 3Y16.75%
EBIT Next 5YN/A
FCF growth 1Y-18.74%
FCF growth 3Y26.43%
FCF growth 5Y27.29%
OCF growth 1Y-12.27%
OCF growth 3Y27.49%
OCF growth 5Y26.36%