MUELLER WATER PRODUCTS INC-A (MWA)
US6247581084 - Common Stock
Overall MWA gets a fundamental rating of 5 out of 10. We evaluated MWA against 131 industry peers in the Machinery industry. While MWA has a great health rating, its profitability is only average at the moment. MWA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MWA was profitable.
MWA had a positive operating cash flow in the past year.
MWA had positive earnings in 4 of the past 5 years.
MWA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.85%, MWA is in the better half of the industry, outperforming 72.66% of the companies in the same industry.
MWA has a better Return On Equity (15.55%) than 72.66% of its industry peers.
MWA has a Return On Invested Capital of 11.52%. This is in the better half of the industry: MWA outperforms 76.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MWA is below the industry average of 11.02%.
The last Return On Invested Capital (11.52%) for MWA is above the 3 year average (8.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 15.55% | ||
| ROIC | 11.52% |
ROA(3y)5.14%
ROA(5y)5.07%
ROE(3y)11.2%
ROE(5y)11.13%
ROIC(3y)8.18%
ROIC(5y)8.41%
1.3 Margins
MWA has a Profit Margin of 9.71%. This is in the better half of the industry: MWA outperforms 71.09% of its industry peers.
In the last couple of years the Profit Margin of MWA has declined.
With a decent Operating Margin value of 15.79%, MWA is doing good in the industry, outperforming 78.91% of the companies in the same industry.
In the last couple of years the Operating Margin of MWA has declined.
MWA has a Gross Margin of 34.43%. This is in the better half of the industry: MWA outperforms 61.72% of its industry peers.
MWA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.79% | ||
| PM (TTM) | 9.71% | ||
| GM | 34.43% |
OM growth 3Y-7.12%
OM growth 5Y-4.32%
PM growth 3Y-3.54%
PM growth 5Y-10.28%
GM growth 3Y-4.39%
GM growth 5Y-1.23%
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.
There is no outstanding debt for MWA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
MWA has an Altman-Z score of 4.22. This indicates that MWA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MWA (4.22) is better than 67.19% of its industry peers.
MWA has a debt to FCF ratio of 2.76. This is a good value and a sign of high solvency as MWA would need 2.76 years to pay back of all of its debts.
MWA's Debt to FCF ratio of 2.76 is fine compared to the rest of the industry. MWA outperforms 73.44% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that MWA is somewhat dependend on debt financing.
MWA's Debt to Equity ratio of 0.57 is on the low side compared to the rest of the industry. MWA is outperformed by 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 2.76 | ||
| Altman-Z | 4.22 |
ROIC/WACC1.35
WACC8.55%
2.3 Liquidity
MWA has a Current Ratio of 3.70. This indicates that MWA is financially healthy and has no problem in meeting its short term obligations.
MWA's Current ratio of 3.70 is amongst the best of the industry. MWA outperforms 84.38% of its industry peers.
A Quick Ratio of 2.31 indicates that MWA has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.31, MWA belongs to the best of the industry, outperforming 80.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.7 | ||
| Quick Ratio | 2.31 |
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.
Measured over the past years, MWA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.36% on average per year.
EPS 1Y (TTM)51.56%
EPS 3Y20.82%
EPS 5Y9.36%
EPS Q2Q%15.79%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%15.53%
3.2 Future
Based on estimates for the next years, MWA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.61% on average per year.
Based on estimates for the next years, MWA will show a small growth in Revenue. The Revenue will grow by 4.73% on average per year.
EPS Next Y8.46%
EPS Next 2Y10.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.54%
Revenue Next 2Y4.73%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.49, which indicates a rather expensive current valuation of MWA.
The rest of the industry has a similar Price/Earnings ratio as MWA.
The average S&P500 Price/Earnings ratio is at 28.76. MWA is around the same levels.
MWA is valuated rather expensively with a Price/Forward Earnings ratio of 22.58.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MWA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.90, MWA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.49 | ||
| Fwd PE | 22.58 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MWA.
66.41% 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 | 22.74 | ||
| EV/EBITDA | 14.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MWA does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of MWA may justify a higher PE ratio.
PEG (NY)2.89
PEG (5Y)2.62
EPS Next 2Y10.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.18%.
MWA's Dividend Yield is a higher than the industry average which is at 1.59.
With a Dividend Yield of 1.18, MWA pays less dividend than the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of MWA has a limited annual growth rate of 5.11%.
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)5.11%
Div Incr Years9
Div Non Decr Years17
5.3 Sustainability
MWA pays out 32.01% of its income as dividend. This is a sustainable payout ratio.
The dividend of MWA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.01%
EPS Next 2Y10.61%
EPS Next 3YN/A
MUELLER WATER PRODUCTS INC-A
NYSE:MWA (11/7/2024, 11:20:01 AM)
23.76
-0.21 (-0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.49 | ||
| Fwd PE | 22.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.89
PEG (5Y)2.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 15.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.79% | ||
| PM (TTM) | 9.71% | ||
| GM | 34.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.7 | ||
| Quick Ratio | 2.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)51.56%
EPS 3Y20.82%
EPS 5Y
EPS Q2Q%
EPS Next Y8.46%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y