MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MWA - US6247581084 - Common Stock
24.53 USD
-0.06 (-0.24%)
24.28 USD
-0.25 (-1.02%)
MWA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 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 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.
In the past 5 years MWA has always been profitable.
In the past 5 years MWA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MWA (10.42%) is better than 81.06% of its industry peers.
The Return On Equity of MWA (19.53%) is better than 86.36% of its industry peers.
MWA has a better Return On Invested Capital (12.92%) than 80.30% 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 10.27%.
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 82.58% 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.
MWA's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 36.43%, MWA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
MWA's Gross Margin has been stable in the last couple of years.
| 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
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 about the same amout of 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 4.31. This indicates that MWA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.31, MWA is in the better half of the industry, outperforming 67.42% 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.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.44
WACC8.99%
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.
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.
A Quick Ratio of 2.41 indicates that MWA has no problem at all paying its short term obligations.
The Quick ratio of MWA (2.41) is better than 83.33% of its industry peers.
| 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.
The Earnings Per Share has been growing by 20.76% on average over the past years. This is a very strong growth
The Revenue has grown by 8.75% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 3.79% on average over the next years.
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.
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
The Price/Earnings ratio is 18.73, 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 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of MWA to the average of the S&P500 Index (26.84), we can say MWA is valued slightly cheaper.
MWA is valuated rather expensively with a Price/Forward Earnings ratio of 17.37.
MWA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MWA is cheaper than 68.94% of the companies in the same industry.
MWA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
69.70% of the companies in the same industry are more expensive than MWA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MWA indicates a somewhat cheap valuation: MWA is cheaper than 62.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.3 | ||
| EV/EBITDA | 12.06 |
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)2.4
PEG (5Y)0.9
EPS Next 2Y7.47%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.13%. 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 0.98.
Compared to an average S&P500 Dividend Yield of 2.00, MWA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of MWA has a limited annual growth rate of 5.03%.
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)5.03%
Div Incr Years10
Div Non Decr Years18
5.3 Sustainability
MWA pays out 21.86% of its income as dividend. This is a 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%
24.53
-0.06 (-0.24%)
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 Change1.1%
Market Cap3.84B
Revenue(TTM)1.43B
Net Income(TTM)191.70M
Analysts74
Price Target28.22 (15.04%)
Short Float %1.89%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend0.27
Dividend Growth(5Y)5.03%
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)28.78%
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)-2.47%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.73 | ||
| Fwd PE | 17.37 | ||
| P/S | 2.68 | ||
| P/FCF | 22.3 | ||
| P/OCF | 17.49 | ||
| P/B | 3.91 | ||
| P/tB | 6.55 | ||
| EV/EBITDA | 12.06 |
EPS(TTM)1.31
EY5.34%
EPS(NY)1.41
Fwd EY5.76%
FCF(TTM)1.1
FCFY4.48%
OCF(TTM)1.4
OCFY5.72%
SpS9.14
BVpS6.28
TBVpS3.74
PEG (NY)2.4
PEG (5Y)0.9
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 | 4.31 |
F-Score8
WACC8.99%
ROIC/WACC1.44
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 9 / 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 18.73 and the Price/Book (PB) ratio is 3.91.
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.