MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
NYSE:MWA - New York Stock Exchange, Inc. - US6247581084 - Common Stock
Taking everything into account, MWA scores 6 out of 10 in our fundamental rating. MWA was compared to 131 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making MWA a very profitable company, without any liquidiy or solvency issues. MWA has a decent growth rate and is not valued too expensively. This makes MWA very considerable 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.
Each year in the past 5 years MWA has been profitable.
MWA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MWA has a Return On Assets of 7.08%. This is in the better half of the industry: MWA outperforms 68.50% of its industry peers.
The Return On Equity of MWA (14.31%) is better than 68.50% of its industry peers.
MWA's Return On Invested Capital of 11.59% is fine compared to the rest of the industry. MWA outperforms 75.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MWA is below the industry average of 11.19%.
The 3 year average ROIC (9.01%) for MWA is below the current ROIC(11.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 14.31% | ||
| ROIC | 11.59% |
ROA(3y)5.96%
ROA(5y)5.54%
ROE(3y)12.59%
ROE(5y)11.83%
ROIC(3y)9.01%
ROIC(5y)8.58%
1.3 Margins
Looking at the Profit Margin, with a value of 8.82%, MWA is in the better half of the industry, outperforming 64.57% of the companies in the same industry.
MWA's Profit Margin has improved in the last couple of years.
MWA's Operating Margin of 16.26% is fine compared to the rest of the industry. MWA outperforms 77.95% of its industry peers.
MWA's Operating Margin has improved in the last couple of years.
MWA's Gross Margin of 34.91% is fine compared to the rest of the industry. MWA outperforms 60.63% 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 | 16.26% | ||
| PM (TTM) | 8.82% | ||
| GM | 34.91% |
OM growth 3Y8.95%
OM growth 5Y2.64%
PM growth 3Y11.63%
PM growth 5Y5.99%
GM growth 3Y2.66%
GM growth 5Y1.04%
2. Health
2.1 Basic Checks
MWA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MWA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MWA has less shares outstanding
MWA has a better debt/assets ratio than last year.
2.2 Solvency
MWA has an Altman-Z score of 4.04. This indicates that MWA is financially healthy and has little risk of bankruptcy at the moment.
MWA's Altman-Z score of 4.04 is fine compared to the rest of the industry. MWA outperforms 61.42% of its industry peers.
MWA has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as MWA would need 2.35 years to pay back of all of its debts.
The Debt to FCF ratio of MWA (2.35) is better than 77.95% of its industry peers.
MWA has a Debt/Equity ratio of 0.55. This is a neutral value indicating MWA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, MWA perfoms like the industry average, outperforming 40.16% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for MWA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.26
WACC9.21%
2.3 Liquidity
MWA has a Current Ratio of 3.33. This indicates that MWA is financially healthy and has no problem in meeting its short term obligations.
MWA's Current ratio of 3.33 is amongst the best of the industry. MWA outperforms 81.89% of its industry peers.
A Quick Ratio of 2.16 indicates that MWA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.16, MWA belongs to the top of the industry, outperforming 80.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
MWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.56%, which is quite impressive.
The Earnings Per Share has been growing by 9.36% on average over the past years. This is quite good.
Looking at the last year, MWA shows a small growth in Revenue. The Revenue has grown by 3.06% in the last year.
Measured over the past years, MWA shows a small growth in Revenue. The Revenue has been growing by 6.31% on average per year.
EPS 1Y (TTM)51.56%
EPS 3Y20.82%
EPS 5Y9.36%
EPS Q2Q%15.79%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y5.77%
Revenue growth 5Y6.31%
Sales Q2Q%15.53%
3.2 Future
MWA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.47% yearly.
MWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y20.44%
EPS Next 2Y15.9%
EPS Next 3Y9.47%
EPS Next 5YN/A
Revenue Next Year5.31%
Revenue Next 2Y5.36%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.31, the valuation of MWA can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MWA is on the same level as its industry peers.
MWA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.18, which indicates a rather expensive current valuation of MWA.
Based on the Price/Forward Earnings ratio, MWA is valued a bit cheaper than the industry average as 62.99% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. MWA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.31 | ||
| Fwd PE | 20.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MWA.
Based on the Price/Free Cash Flow ratio, MWA is valued a bit cheaper than 77.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.28 | ||
| EV/EBITDA | 13.68 |
4.3 Compensation for Growth
MWA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of MWA may justify a higher PE ratio.
PEG (NY)1.19
PEG (5Y)2.6
EPS Next 2Y15.9%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.17%. 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 1.65.
With a Dividend Yield of 1.17, MWA pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of MWA has a limited annual growth rate of 4.69%.
MWA has paid a dividend for at least 10 years, which is a reliable track record.
MWA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.69%
Div Incr Years10
Div Non Decr Years18
5.3 Sustainability
MWA pays out 34.43% of its income as dividend. This is a sustainable payout ratio.
MWA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.43%
EPS Next 2Y15.9%
EPS Next 3Y9.47%
MUELLER WATER PRODUCTS INC-A
NYSE:MWA (1/21/2025, 8:16:04 PM)
After market: 23.58 0 (0%)23.58
+0.64 (+2.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.18%
Inst Owner Change-0.36%
Ins Owners0.84%
Ins Owner Change0.22%
Market Cap3.69B
Analysts74
Price Target26.86 (13.91%)
Short Float %1.78%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend0.26
Dividend Growth(5Y)4.69%
DP34.43%
Div Incr Years10
Div Non Decr Years18
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.12%
Min EPS beat(2)1.31%
Max EPS beat(2)42.93%
EPS beat(4)4
Avg EPS beat(4)53.35%
Min EPS beat(4)1.31%
Max EPS beat(4)104.85%
EPS beat(8)6
Avg EPS beat(8)37.18%
EPS beat(12)8
Avg EPS beat(12)27.08%
EPS beat(16)11
Avg EPS beat(16)21.23%
Revenue beat(2)2
Avg Revenue beat(2)6.65%
Min Revenue beat(2)6.15%
Max Revenue beat(2)7.15%
Revenue beat(4)4
Avg Revenue beat(4)7.84%
Min Revenue beat(4)1.29%
Max Revenue beat(4)16.78%
Revenue beat(8)6
Avg Revenue beat(8)4.39%
Revenue beat(12)9
Avg Revenue beat(12)4.09%
Revenue beat(16)12
Avg Revenue beat(16)4.84%
PT rev (1m)0%
PT rev (3m)13.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.89%
EPS NY rev (1m)0%
EPS NY rev (3m)10.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.31 | ||
| Fwd PE | 20.18 | ||
| P/S | 2.81 | ||
| P/FCF | 19.28 | ||
| P/OCF | 15.46 | ||
| P/B | 4.56 | ||
| P/tB | 8.79 | ||
| EV/EBITDA | 13.68 |
EPS(TTM)0.97
EY4.11%
EPS(NY)1.17
Fwd EY4.95%
FCF(TTM)1.22
FCFY5.19%
OCF(TTM)1.53
OCFY6.47%
SpS8.4
BVpS5.18
TBVpS2.68
PEG (NY)1.19
PEG (5Y)2.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 14.31% | ||
| ROCE | 15.52% | ||
| ROIC | 11.59% | ||
| ROICexc | 14.95% | ||
| ROICexgc | 23.57% | ||
| OM | 16.26% | ||
| PM (TTM) | 8.82% | ||
| GM | 34.91% | ||
| FCFM | 14.56% |
ROA(3y)5.96%
ROA(5y)5.54%
ROE(3y)12.59%
ROE(5y)11.83%
ROIC(3y)9.01%
ROIC(5y)8.58%
ROICexc(3y)10.84%
ROICexc(5y)10.33%
ROICexgc(3y)17.57%
ROICexgc(5y)17.96%
ROCE(3y)12.07%
ROCE(5y)11.49%
ROICexcg growth 3Y8.33%
ROICexcg growth 5Y0.66%
ROICexc growth 3Y15.33%
ROICexc growth 5Y7.3%
OM growth 3Y8.95%
OM growth 5Y2.64%
PM growth 3Y11.63%
PM growth 5Y5.99%
GM growth 3Y2.66%
GM growth 5Y1.04%
F-Score8
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 71.6% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 21.38 | ||
| Cash Conversion | 85.29% | ||
| Profit Quality | 165.14% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 4.04 |
F-Score8
WACC9.21%
ROIC/WACC1.26
Cap/Depr(3y)79.39%
Cap/Depr(5y)92.1%
Cap/Sales(3y)3.91%
Cap/Sales(5y)4.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.56%
EPS 3Y20.82%
EPS 5Y9.36%
EPS Q2Q%15.79%
EPS Next Y20.44%
EPS Next 2Y15.9%
EPS Next 3Y9.47%
EPS Next 5YN/A
Revenue 1Y (TTM)3.06%
Revenue growth 3Y5.77%
Revenue growth 5Y6.31%
Sales Q2Q%15.53%
Revenue Next Year5.31%
Revenue Next 2Y5.36%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
EBIT growth 1Y55.38%
EBIT growth 3Y15.24%
EBIT growth 5Y9.12%
EBIT Next Year46.5%
EBIT Next 3Y16.3%
EBIT Next 5YN/A
FCF growth 1Y211.73%
FCF growth 3Y26.75%
FCF growth 5Y100.55%
OCF growth 1Y119.08%
OCF growth 3Y15.08%
OCF growth 5Y20.89%