MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MWA - US6247581084 - Common Stock
25.24 USD
+0.24 (+0.96%)
25.24 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to MWA. MWA was compared to 132 industry peers in the Machinery industry. MWA gets an excellent profitability rating and is at the same time showing great financial health properties. MWA is not valued too expensively and it also shows a decent growth rate. 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.
Each year in the past 5 years MWA has been profitable.
Each year in the past 5 years MWA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.42%, MWA belongs to the top of the industry, outperforming 81.06% of the companies in the same industry.
MWA's Return On Equity of 19.53% is amongst the best of the industry. MWA outperforms 87.12% of its industry peers.
With an excellent Return On Invested Capital value of 12.92%, MWA belongs to the best of the industry, outperforming 81.06% 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 10.22%.
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
MWA has a better Profit Margin (13.41%) than 82.58% of its industry peers.
MWA's Profit Margin has improved in the last couple of years.
MWA's Operating Margin of 19.13% is amongst the best of the industry. MWA outperforms 87.88% of its industry peers.
In the last couple of years the Operating Margin of MWA has grown nicely.
The Gross Margin of MWA (36.43%) is better than 66.67% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MWA is still creating some value.
The number of shares outstanding for MWA remains at a similar level compared to 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
An Altman-Z score of 4.35 indicates that MWA is not in any danger for bankruptcy at the moment.
MWA has a better Altman-Z score (4.35) than 66.67% of its industry peers.
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.
MWA has a better Debt to FCF ratio (2.63) than 72.73% of its industry peers.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 4.35 |
ROIC/WACC1.4
WACC9.21%
2.3 Liquidity
A Current Ratio of 3.54 indicates that MWA has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.54, MWA belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
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 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
MWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.05%, which is quite impressive.
MWA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.76% yearly.
The Revenue has grown by 8.75% in the past year. This is quite good.
The Revenue has been growing by 8.20% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 2.26% on average over the next years.
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
The Price/Earnings ratio is 19.27, which indicates a rather expensive current valuation of MWA.
MWA's Price/Earnings ratio is a bit cheaper when compared to the industry. MWA is cheaper than 76.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, MWA is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.87, which indicates a rather expensive current valuation of MWA.
73.48% of the companies in the same industry are more expensive than MWA, based on the Price/Forward Earnings ratio.
MWA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 17.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MWA is valued a bit cheaper than the industry average as 70.45% of the companies are valued more expensively.
MWA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MWA is cheaper than 64.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.94 | ||
| EV/EBITDA | 12.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MWA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.47
PEG (5Y)0.93
EPS Next 2Y7.47%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.12%. 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 0.85.
With a Dividend Yield of 1.12, MWA pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
The dividend of MWA has a limited annual growth rate of 5.03%.
MWA has been paying a dividend for at least 10 years, so it has a reliable track record.
MWA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.03%
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.
MWA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.86%
EPS Next 2Y7.47%
EPS Next 3Y3.79%
25.24
+0.24 (+0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.49%
Inst Owner Change0%
Ins Owners0.46%
Ins Owner Change1.1%
Market Cap3.95B
Revenue(TTM)1.43B
Net Income(TTM)191.70M
Analysts74
Price Target28.22 (11.81%)
Short Float %1.89%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend0.27
Dividend Growth(5Y)5.03%
DP21.86%
Div Incr Years10
Div Non Decr Years18
Ex-DateN/A
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)28.78%
EPS beat(16)11
Avg EPS beat(16)23.31%
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)0%
PT rev (3m)-3.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 17.87 | ||
| P/S | 2.76 | ||
| P/FCF | 22.94 | ||
| P/OCF | 17.99 | ||
| P/B | 4.02 | ||
| P/tB | 6.74 | ||
| EV/EBITDA | 12.26 |
EPS(TTM)1.31
EY5.19%
EPS(NY)1.41
Fwd EY5.6%
FCF(TTM)1.1
FCFY4.36%
OCF(TTM)1.4
OCFY5.56%
SpS9.14
BVpS6.28
TBVpS3.74
PEG (NY)2.47
PEG (5Y)0.93
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 | 4.35 |
F-Score8
WACC9.21%
ROIC/WACC1.4
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.
Can you provide the valuation status for MUELLER WATER PRODUCTS INC-A?
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 9 / 10.
What are the PE and PB ratios of MUELLER WATER PRODUCTS INC-A (MWA) stock?
The Price/Earnings (PE) ratio for MUELLER WATER PRODUCTS INC-A (MWA) is 19.27 and the Price/Book (PB) ratio is 4.02.
Can you provide the expected EPS growth for MWA stock?
The Earnings per Share (EPS) of MUELLER WATER PRODUCTS INC-A (MWA) is expected to grow by 7.81% in the next year.