MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MWA - US6247581084 - Common Stock
24.66 USD
+0.55 (+2.28%)
24.4471 USD
-0.21 (-0.86%)
We assign a fundamental rating of 7 out of 10 to MWA. MWA was compared to 130 industry peers in the Machinery industry. MWA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MWA is not valued too expensively and it also shows a decent growth rate. With these ratings, MWA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year MWA was profitable.
MWA had a positive operating cash flow in the past year.
In the past 5 years MWA has always been profitable.
Each year in the past 5 years MWA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MWA (10.42%) is better than 80.77% of its industry peers.
The Return On Equity of MWA (19.53%) is better than 86.15% of its industry peers.
MWA's Return On Invested Capital of 12.92% is fine compared to the rest of the industry. MWA outperforms 79.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MWA is in line with the industry average of 10.46%.
The 3 year average ROIC (10.70%) for MWA is below the current ROIC(12.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 19.53% | ||
| ROIC | 12.92% |
ROA(3y)7.73%
ROA(5y)6.59%
ROE(3y)15.28%
ROE(5y)13.49%
ROIC(3y)10.7%
ROIC(5y)9.46%
1.3 Margins
The Profit Margin of MWA (13.41%) is better than 82.31% of its industry peers.
MWA's Profit Margin has improved in the last couple of years.
The Operating Margin of MWA (19.13%) is better than 87.69% of its industry peers.
MWA's Operating Margin has improved in the last couple of years.
MWA has a Gross Margin of 36.43%. This is in the better half of the industry: MWA outperforms 66.15% of its industry peers.
In the last couple of years the Gross Margin of MWA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.13% | ||
| PM (TTM) | 13.41% | ||
| GM | 36.43% |
OM growth 3Y23.85%
OM growth 5Y7.28%
PM growth 3Y29.73%
PM growth 5Y12.42%
GM growth 3Y7.64%
GM growth 5Y1.36%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MWA is creating some value.
Compared to 1 year ago, MWA has about the same amount of shares outstanding.
Compared to 5 years ago, MWA has less shares outstanding
The debt/assets ratio for MWA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.26 indicates that MWA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.26, MWA is in the better half of the industry, outperforming 68.46% of the companies in the same industry.
MWA has a debt to FCF ratio of 2.63. This is a good value and a sign of high solvency as MWA would need 2.63 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.63, MWA is doing good in the industry, outperforming 72.31% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that MWA is not too dependend on debt financing.
MWA has a Debt to Equity ratio (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.42
WACC9.11%
2.3 Liquidity
MWA has a Current Ratio of 3.54. This indicates that MWA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MWA (3.54) is better than 84.62% of its industry peers.
MWA has a Quick Ratio of 2.41. This indicates that MWA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.41, MWA belongs to the best of the industry, outperforming 82.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.05% over the past year.
The Earnings Per Share has been growing by 20.76% on average over the past years. This is a very strong growth
Looking at the last year, MWA shows a quite strong growth in Revenue. The Revenue has grown by 8.75% in the last year.
MWA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.20% yearly.
EPS 1Y (TTM)35.05%
EPS 3Y31.97%
EPS 5Y20.76%
EPS Q2Q%72.73%
Revenue 1Y (TTM)8.75%
Revenue growth 3Y4.65%
Revenue growth 5Y8.2%
Sales Q2Q%9.36%
3.2 Future
MWA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.79% yearly.
MWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.26% yearly.
EPS Next Y7.81%
EPS Next 2Y7.47%
EPS Next 3Y3.79%
EPS Next 5YN/A
Revenue Next Year4.07%
Revenue Next 2Y3.89%
Revenue Next 3Y2.26%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.82 indicates a rather expensive valuation of MWA.
Based on the Price/Earnings ratio, MWA is valued a bit cheaper than the industry average as 74.62% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. MWA is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.46 indicates a rather expensive valuation of MWA.
Based on the Price/Forward Earnings ratio, MWA is valued a bit cheaper than the industry average as 67.69% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, MWA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 17.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MWA indicates a somewhat cheap valuation: MWA is cheaper than 68.46% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MWA is valued a bit cheaper than the industry average as 62.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.42 | ||
| EV/EBITDA | 11.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MWA may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)0.91
EPS Next 2Y7.47%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
MWA's Dividend Yield is a higher than the industry average which is at 1.84.
Compared to an average S&P500 Dividend Yield of 2.31, MWA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
The dividend of MWA has a limited annual growth rate of 4.69%.
MWA has been paying a dividend for at least 10 years, so it has a reliable track record.
MWA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.69%
Div Incr Years10
Div Non Decr Years18
5.3 Sustainability
21.86% of the earnings are spent on dividend by MWA. This is a low number and sustainable payout ratio.
The dividend of MWA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21.86%
EPS Next 2Y7.47%
EPS Next 3Y3.79%
24.66
+0.55 (+2.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.11%
Inst Owner Change-2.71%
Ins Owners0.34%
Ins Owner Change1.92%
Market Cap3.86B
Revenue(TTM)1.43B
Net Income(TTM)191.70M
Analysts74
Price Target28.22 (14.44%)
Short Float %2.41%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend0.26
Dividend Growth(5Y)4.69%
DP21.86%
Div Incr Years10
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.35%
Min EPS beat(2)-0.5%
Max EPS beat(2)11.2%
EPS beat(4)3
Avg EPS beat(4)11.83%
Min EPS beat(4)-0.5%
Max EPS beat(4)28.03%
EPS beat(8)7
Avg EPS beat(8)32.59%
EPS beat(12)9
Avg EPS beat(12)28.73%
EPS beat(16)11
Avg EPS beat(16)23.27%
Revenue beat(2)2
Avg Revenue beat(2)3.27%
Min Revenue beat(2)2.47%
Max Revenue beat(2)4.06%
Revenue beat(4)4
Avg Revenue beat(4)3.18%
Min Revenue beat(4)2.38%
Max Revenue beat(4)4.06%
Revenue beat(8)8
Avg Revenue beat(8)5.51%
Revenue beat(12)10
Avg Revenue beat(12)3.99%
Revenue beat(16)13
Avg Revenue beat(16)3.86%
PT rev (1m)-3.49%
PT rev (3m)-3.49%
EPS NQ rev (1m)-3.37%
EPS NQ rev (3m)-2.47%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 17.46 | ||
| P/S | 2.7 | ||
| P/FCF | 22.42 | ||
| P/OCF | 17.58 | ||
| P/B | 3.93 | ||
| P/tB | 6.59 | ||
| EV/EBITDA | 11.83 |
EPS(TTM)1.31
EY5.31%
EPS(NY)1.41
Fwd EY5.73%
FCF(TTM)1.1
FCFY4.46%
OCF(TTM)1.4
OCFY5.69%
SpS9.14
BVpS6.28
TBVpS3.74
PEG (NY)2.41
PEG (5Y)0.91
Graham Number13.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 19.53% | ||
| ROCE | 17.66% | ||
| ROIC | 12.92% | ||
| ROICexc | 17.91% | ||
| ROICexgc | 27.77% | ||
| OM | 19.13% | ||
| PM (TTM) | 13.41% | ||
| GM | 36.43% | ||
| FCFM | 12.03% |
ROA(3y)7.73%
ROA(5y)6.59%
ROE(3y)15.28%
ROE(5y)13.49%
ROIC(3y)10.7%
ROIC(5y)9.46%
ROICexc(3y)13.84%
ROICexc(5y)11.87%
ROICexgc(3y)21.76%
ROICexgc(5y)19.51%
ROCE(3y)14.63%
ROCE(5y)12.93%
ROICexgc growth 3Y25.29%
ROICexgc growth 5Y8.84%
ROICexc growth 3Y29.36%
ROICexc growth 5Y14.23%
OM growth 3Y23.85%
OM growth 5Y7.28%
PM growth 3Y29.73%
PM growth 5Y12.42%
GM growth 3Y7.64%
GM growth 5Y1.36%
F-Score8
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.63 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 100.85% | ||
| Cap/Sales | 3.31% | ||
| Interest Coverage | 49.73 | ||
| Cash Conversion | 68.45% | ||
| Profit Quality | 89.72% | ||
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.41 | ||
| Altman-Z | 4.26 |
F-Score8
WACC9.11%
ROIC/WACC1.42
Cap/Depr(3y)82.87%
Cap/Depr(5y)88.85%
Cap/Sales(3y)3.55%
Cap/Sales(5y)4.13%
Profit Quality(3y)108.89%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.05%
EPS 3Y31.97%
EPS 5Y20.76%
EPS Q2Q%72.73%
EPS Next Y7.81%
EPS Next 2Y7.47%
EPS Next 3Y3.79%
EPS Next 5YN/A
Revenue 1Y (TTM)8.75%
Revenue growth 3Y4.65%
Revenue growth 5Y8.2%
Sales Q2Q%9.36%
Revenue Next Year4.07%
Revenue Next 2Y3.89%
Revenue Next 3Y2.26%
Revenue Next 5YN/A
EBIT growth 1Y27.92%
EBIT growth 3Y29.62%
EBIT growth 5Y16.07%
EBIT Next Year27.9%
EBIT Next 3Y10.07%
EBIT Next 5YN/A
FCF growth 1Y-10.14%
FCF growth 3YN/A
FCF growth 5Y18.83%
OCF growth 1Y-8.17%
OCF growth 3Y61.25%
OCF growth 5Y9.34%
MUELLER WATER PRODUCTS INC-A / MWA FAQ
What is the fundamental rating for MWA stock?
ChartMill assigns a fundamental rating of 7 / 10 to MWA.
What is the valuation status of MUELLER WATER PRODUCTS INC-A (MWA) stock?
ChartMill assigns a valuation rating of 5 / 10 to MUELLER WATER PRODUCTS INC-A (MWA). This can be considered as Fairly Valued.
What is the profitability of MWA stock?
MUELLER WATER PRODUCTS INC-A (MWA) has a profitability rating of 8 / 10.
What is the valuation of MUELLER WATER PRODUCTS INC-A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MUELLER WATER PRODUCTS INC-A (MWA) is 18.82 and the Price/Book (PB) ratio is 3.93.
What is the earnings growth outlook for MUELLER WATER PRODUCTS INC-A?
The Earnings per Share (EPS) of MUELLER WATER PRODUCTS INC-A (MWA) is expected to grow by 7.81% in the next year.