MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MLI - US6247561029 - Common Stock
123.6 USD
+2.27 (+1.87%)
123.6 USD
0 (0%)
We assign a fundamental rating of 8 out of 10 to MLI. MLI was compared to 132 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 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.
In the past year MLI had a positive cash flow from operations.
MLI had positive earnings in each of the past 5 years.
Each year in the past 5 years MLI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 20.27%, MLI belongs to the best of the industry, outperforming 98.48% of the companies in the same industry.
MLI has a better Return On Equity (24.40%) than 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.73%, MLI belongs to the top 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 10.22%.
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
MLI has a Profit Margin of 18.10%. This is amongst the best in the industry. MLI outperforms 93.94% 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 92.42% of the companies in the same industry.
In the last couple of years the Operating Margin of MLI has grown nicely.
MLI has a Gross Margin (29.47%) which is in line with 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MLI is creating value.
MLI has less shares outstanding than it did 1 year ago.
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 16.82. This indicates that MLI is financially healthy and has little risk of bankruptcy at the moment.
MLI has a Altman-Z score of 16.82. This is amongst the best in the industry. MLI outperforms 96.97% of its industry peers.
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 | 16.82 |
ROIC/WACC2.13
WACC9.71%
2.3 Liquidity
A Current Ratio of 4.82 indicates that MLI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.82, MLI belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 3.81 indicates that MLI has no problem at all paying its short term obligations.
The Quick ratio of MLI (3.81) is better than 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.
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 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.
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
With a Price/Earnings ratio of 19.40, MLI is valued on the expensive side.
MLI's Price/Earnings ratio is a bit cheaper when compared to the industry. MLI is cheaper than 77.27% of the companies in the same industry.
MLI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.49, the valuation of MLI can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MLI indicates a rather cheap valuation: MLI is cheaper than 81.06% of the companies listed in the same industry.
MLI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 16.49 |
4.2 Price Multiples
68.18% of the companies in the same industry are more expensive than MLI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MLI is valued a bit cheaper than 70.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.28 | ||
| EV/EBITDA | 12.56 |
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)0.64
PEG (5Y)0.46
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 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.
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%
123.6
+2.27 (+1.87%)
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 Cap13.72B
Revenue(TTM)4.14B
Net Income(TTM)749.13M
Analysts83.33
Price Target133.11 (7.69%)
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 | 19.4 | ||
| Fwd PE | 16.49 | ||
| P/S | 3.31 | ||
| P/FCF | 20.28 | ||
| P/OCF | 18.19 | ||
| P/B | 4.47 | ||
| P/tB | 5.53 | ||
| EV/EBITDA | 12.56 |
EPS(TTM)6.37
EY5.15%
EPS(NY)7.49
Fwd EY6.06%
FCF(TTM)6.09
FCFY4.93%
OCF(TTM)6.8
OCFY5.5%
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 | 16.82 |
F-Score8
WACC9.71%
ROIC/WACC2.13
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%.