MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
NYSE:MWA - New York Stock Exchange, Inc. - US6247581084 - Common Stock - Currency: USD
Overall MWA gets a fundamental rating of 7 out of 10. We evaluated MWA against 128 industry peers in the Machinery industry. MWA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MWA has a decent growth rate and is not valued too expensively. These ratings would make MWA suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year MWA was profitable.
In the past year MWA had a positive cash flow from operations.
MWA had positive earnings in each of the past 5 years.
MWA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MWA has a better Return On Assets (8.45%) than 75.20% of its industry peers.
MWA has a Return On Equity of 16.41%. This is in the better half of the industry: MWA outperforms 73.60% of its industry peers.
With a decent Return On Invested Capital value of 12.64%, MWA is doing good in the industry, outperforming 77.60% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MWA is in line with the industry average of 11.00%.
The last Return On Invested Capital (12.64%) for MWA is above the 3 year average (9.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.45% | ||
| ROE | 16.41% | ||
| ROIC | 12.64% |
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 10.05%, MWA is in the better half of the industry, outperforming 68.80% of the companies in the same industry.
MWA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.38%, MWA belongs to the top of the industry, outperforming 80.80% of the companies in the same industry.
MWA's Operating Margin has improved in the last couple of years.
The Gross Margin of MWA (35.15%) is better than 60.80% of its industry peers.
MWA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.38% | ||
| PM (TTM) | 10.05% | ||
| GM | 35.15% |
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.
The number of shares outstanding for MWA has been increased compared to 1 year ago.
The number of shares outstanding for MWA has been reduced compared to 5 years ago.
MWA has a better debt/assets ratio than last year.
2.2 Solvency
MWA has an Altman-Z score of 4.67. This indicates that MWA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MWA (4.67) is better than 73.60% of its industry peers.
The Debt to FCF ratio of MWA is 2.62, which is a good value as it means it would take MWA, 2.62 years of fcf income to pay off all of its debts.
MWA's Debt to FCF ratio of 2.62 is fine compared to the rest of the industry. MWA outperforms 71.20% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that MWA is somewhat dependend on debt financing.
The Debt to Equity ratio of MWA (0.54) is worse than 60.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.67 |
ROIC/WACC1.24
WACC10.16%
2.3 Liquidity
MWA has a Current Ratio of 3.83. This indicates that MWA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MWA (3.83) is better than 86.40% of its industry peers.
MWA has a Quick Ratio of 2.38. This indicates that MWA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.38, MWA belongs to the best of the industry, outperforming 81.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.83 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
MWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.31%, which is quite impressive.
The Earnings Per Share has been growing by 9.36% on average over the past years. This is quite good.
MWA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.94%.
MWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.31% yearly.
EPS 1Y (TTM)70.31%
EPS 3Y20.82%
EPS 5Y9.36%
EPS Q2Q%92.31%
Revenue 1Y (TTM)11.94%
Revenue growth 3Y5.77%
Revenue growth 5Y6.31%
Sales Q2Q%18.68%
3.2 Future
The Earnings Per Share is expected to grow by 14.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y25.73%
EPS Next 2Y18.34%
EPS Next 3Y14.72%
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 accelerating: in the next years the growth will be better than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MWA is valuated rather expensively with a Price/Earnings ratio of 23.22.
The rest of the industry has a similar Price/Earnings ratio as MWA.
Compared to an average S&P500 Price/Earnings ratio of 29.63, MWA is valued a bit cheaper.
With a Price/Forward Earnings ratio of 18.63, MWA is valued on the expensive side.
MWA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MWA is cheaper than 63.20% of the companies in the same industry.
MWA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 18.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MWA is on the same level as its industry peers.
63.20% of the companies in the same industry are more expensive than MWA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.12 | ||
| EV/EBITDA | 14.3 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of MWA may justify a higher PE ratio.
A more expensive valuation may be justified as MWA's earnings are expected to grow with 14.72% in the coming years.
PEG (NY)0.9
PEG (5Y)2.48
EPS Next 2Y18.34%
EPS Next 3Y14.72%
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.01%.
MWA's Dividend Yield is a higher than the industry average which is at 1.67.
With a Dividend Yield of 1.01, MWA pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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 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
29.51% of the earnings are spent on dividend by MWA. This is a low number and sustainable payout ratio.
MWA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.51%
EPS Next 2Y18.34%
EPS Next 3Y14.72%
25.31
-1.17 (-4.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.09%
Inst Owner Change2.32%
Ins Owners0.84%
Ins Owner Change1.85%
Market Cap3.96B
Analysts74
Price Target29.41 (16.2%)
Short Float %1.7%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend0.26
Dividend Growth(5Y)4.69%
DP29.51%
Div Incr Years10
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.67%
Min EPS beat(2)1.31%
Max EPS beat(2)28.03%
EPS beat(4)4
Avg EPS beat(4)44.28%
Min EPS beat(4)1.31%
Max EPS beat(4)104.85%
EPS beat(8)6
Avg EPS beat(8)32.04%
EPS beat(12)8
Avg EPS beat(12)24.75%
EPS beat(16)11
Avg EPS beat(16)21.26%
Revenue beat(2)2
Avg Revenue beat(2)4.99%
Min Revenue beat(2)3.82%
Max Revenue beat(2)6.15%
Revenue beat(4)4
Avg Revenue beat(4)8.48%
Min Revenue beat(4)3.82%
Max Revenue beat(4)16.78%
Revenue beat(8)6
Avg Revenue beat(8)3.88%
Revenue beat(12)9
Avg Revenue beat(12)3.87%
Revenue beat(16)12
Avg Revenue beat(16)4.56%
PT rev (1m)0%
PT rev (3m)11.27%
EPS NQ rev (1m)1.87%
EPS NQ rev (3m)17.59%
EPS NY rev (1m)4.39%
EPS NY rev (3m)11.12%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)-1.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 18.63 | ||
| P/S | 2.91 | ||
| P/FCF | 23.12 | ||
| P/OCF | 17.62 | ||
| P/B | 4.75 | ||
| P/tB | 8.91 | ||
| EV/EBITDA | 14.3 |
EPS(TTM)1.09
EY4.31%
EPS(NY)1.36
Fwd EY5.37%
FCF(TTM)1.09
FCFY4.32%
OCF(TTM)1.44
OCFY5.68%
SpS8.7
BVpS5.33
TBVpS2.84
PEG (NY)0.9
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.45% | ||
| ROE | 16.41% | ||
| ROCE | 16.93% | ||
| ROIC | 12.64% | ||
| ROICexc | 16.67% | ||
| ROICexgc | 26.35% | ||
| OM | 17.38% | ||
| PM (TTM) | 10.05% | ||
| GM | 35.15% | ||
| FCFM | 12.58% |
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-Score9
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 88.01% | ||
| Cap/Sales | 3.93% | ||
| Interest Coverage | 28.88 | ||
| Cash Conversion | 75.58% | ||
| Profit Quality | 125.2% | ||
| Current Ratio | 3.83 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 4.67 |
F-Score9
WACC10.16%
ROIC/WACC1.24
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)70.31%
EPS 3Y20.82%
EPS 5Y9.36%
EPS Q2Q%92.31%
EPS Next Y25.73%
EPS Next 2Y18.34%
EPS Next 3Y14.72%
EPS Next 5YN/A
Revenue 1Y (TTM)11.94%
Revenue growth 3Y5.77%
Revenue growth 5Y6.31%
Sales Q2Q%18.68%
Revenue Next Year5.31%
Revenue Next 2Y5.36%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
EBIT growth 1Y73.23%
EBIT growth 3Y15.24%
EBIT growth 5Y9.12%
EBIT Next Year46.5%
EBIT Next 3Y16.3%
EBIT Next 5YN/A
FCF growth 1Y721.01%
FCF growth 3Y26.75%
FCF growth 5Y100.55%
OCF growth 1Y765.39%
OCF growth 3Y15.08%
OCF growth 5Y20.89%