MUELLER WATER PRODUCTS INC-A (MWA)
US6247581084 - Common Stock
We assign a fundamental rating of 6 out of 10 to MWA. 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 is quite expensive at the moment. It does show a decent growth rate. With these ratings, MWA could be worth investigating further 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
With a decent Return On Assets value of 7.08%, MWA is doing good in the industry, outperforming 69.29% of the companies in the same industry.
With a decent Return On Equity value of 14.31%, MWA is doing good in the industry, outperforming 69.29% of the companies in the same industry.
MWA has a Return On Invested Capital of 11.59%. This is in the better half of the industry: MWA outperforms 76.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MWA is below the industry average of 11.01%.
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
The Profit Margin of MWA (8.82%) is better than 66.14% of its industry peers.
MWA's Profit Margin has improved in the last couple of years.
MWA has a better Operating Margin (16.26%) than 78.74% of its industry peers.
In the last couple of years the Operating Margin of MWA has grown nicely.
MWA has a better Gross Margin (34.91%) than 62.99% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MWA 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
The debt/assets ratio for MWA has been reduced compared to a year ago.
2.2 Solvency
MWA has an Altman-Z score of 4.18. This indicates that MWA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MWA (4.18) is better than 68.50% of its industry peers.
The Debt to FCF ratio of MWA is 2.35, which is a good value as it means it would take MWA, 2.35 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.35, MWA is in the better half of the industry, outperforming 78.74% of the companies in the same industry.
MWA has a Debt/Equity ratio of 0.55. This is a neutral value indicating MWA is somewhat dependend on debt financing.
The Debt to Equity ratio of MWA (0.55) is comparable to the rest of the 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 | 4.18 |
ROIC/WACC1.32
WACC8.75%
2.3 Liquidity
A Current Ratio of 3.33 indicates that MWA has no problem at all paying its short term obligations.
MWA has a Current ratio of 3.33. This is amongst the best in the industry. MWA outperforms 81.10% of its industry peers.
A Quick Ratio of 2.16 indicates that MWA has no problem at all paying its short term obligations.
MWA has a better Quick ratio (2.16) than 78.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.56% over the past year.
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.
MWA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.06%.
MWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.31% yearly.
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
The Earnings Per Share is expected to grow by 14.54% on average over the next years. This is quite good.
MWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.25% yearly.
EPS Next Y13.15%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.15%
Revenue Next 2Y5.25%
Revenue Next 3YN/A
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 accelerating.
The Revenue 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
MWA is valuated quite expensively with a Price/Earnings ratio of 25.84.
MWA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.65, MWA is valued at the same level.
A Price/Forward Earnings ratio of 22.83 indicates a rather expensive valuation of MWA.
The rest of the industry has a similar Price/Forward Earnings ratio as MWA.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, MWA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.84 | ||
| Fwd PE | 22.83 |
4.2 Price Multiples
MWA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MWA is valued a bit cheaper than the industry average as 72.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.46 | ||
| EV/EBITDA | 14.35 |
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.
MWA has a very decent profitability rating, which may justify a higher PE ratio.
MWA's earnings are expected to grow with 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.96
PEG (5Y)2.76
EPS Next 2Y14.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.10%.
MWA's Dividend Yield is a higher than the industry average which is at 1.54.
Compared to an average S&P500 Dividend Yield of 2.23, MWA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of MWA has a limited annual growth rate of 4.69%.
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)4.69%
Div Incr Years9
Div Non Decr Years17
5.3 Sustainability
34.43% 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.
DP34.43%
EPS Next 2Y14.54%
EPS Next 3YN/A
MUELLER WATER PRODUCTS INC-A
NYSE:MWA (11/21/2024, 1:56:25 PM)
25.06
+0.24 (+0.97%)
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 Cap3.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.84 | ||
| Fwd PE | 22.83 | ||
| 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)1.96
PEG (5Y)2.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 14.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.26% | ||
| PM (TTM) | 8.82% | ||
| GM | 34.91% | ||
| 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.16 | ||
| 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 Y13.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.06%
Revenue growth 3Y5.77%
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