MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MWA - US6247581084 - Common Stock
24.3 USD
-0.03 (-0.12%)
24.3 USD
0 (0%)
Taking everything into account, MWA scores 6 out of 10 in our fundamental rating. MWA was compared to 130 industry peers in the Machinery industry. MWA gets an excellent profitability rating and is at the same time showing great financial health properties. MWA has a valuation in line with the averages, but on the other hand it scores bad on growth.
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 4 of the past 5 years.
Of the past 5 years MWA 4 years had a positive operating cash flow.
1.2 Ratios
MWA's Return On Assets of 8.62% is fine compared to the rest of the industry. MWA outperforms 76.92% of its industry peers.
MWA has a better Return On Equity (16.05%) than 78.46% of its industry peers.
The Return On Invested Capital of MWA (12.41%) is better than 79.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MWA is in line with the industry average of 10.34%.
The 3 year average ROIC (9.01%) for MWA is below the current ROIC(12.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 16.05% | ||
| ROIC | 12.41% |
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
MWA's Profit Margin of 10.67% is fine compared to the rest of the industry. MWA outperforms 77.69% of its industry peers.
MWA's Profit Margin has improved in the last couple of years.
The Operating Margin of MWA (17.69%) is better than 83.85% of its industry peers.
In the last couple of years the Operating Margin of MWA has grown nicely.
With a decent Gross Margin value of 35.14%, MWA is doing good in the industry, outperforming 63.08% 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 | 17.69% | ||
| PM (TTM) | 10.67% | ||
| GM | 35.14% |
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.
MWA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
MWA has an Altman-Z score of 4.42. This indicates that MWA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MWA (4.42) is better than 70.00% of its industry peers.
The Debt to FCF ratio of MWA is 2.61, which is a good value as it means it would take MWA, 2.61 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.61, MWA is doing good in the industry, outperforming 73.08% of the companies in the same industry.
MWA has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.48, MWA perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 4.42 |
ROIC/WACC1.39
WACC8.94%
2.3 Liquidity
MWA has a Current Ratio of 3.86. This indicates that MWA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.86, MWA belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
MWA has a Quick Ratio of 2.56. This indicates that MWA is financially healthy and has no problem in meeting its short term obligations.
MWA's Quick ratio of 2.56 is amongst the best of the industry. MWA outperforms 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.86 | ||
| Quick Ratio | 2.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.05% over the past year.
The Earnings Per Share has been growing by 20.76% on average over the past years. This is a very strong growth
EPS 1Y (TTM)35.05%
EPS 3Y31.97%
EPS 5Y20.76%
EPS Q2Q%72.73%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.36%
3.2 Future
The Earnings Per Share is expected to grow by 7.06% on average over the next years.
Based on estimates for the next years, MWA will show a small growth in Revenue. The Revenue will grow by 4.06% on average per year.
EPS Next Y8.45%
EPS Next 2Y7.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.63%
Revenue Next 2Y4.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS 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 18.55, which indicates a rather expensive current valuation of MWA.
71.54% of the companies in the same industry are more expensive than MWA, based on the Price/Earnings ratio.
MWA is valuated rather cheaply when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
MWA is valuated rather expensively with a Price/Forward Earnings ratio of 17.10.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MWA indicates a somewhat cheap valuation: MWA is cheaper than 65.38% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.79. MWA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 17.1 |
4.2 Price Multiples
63.85% of the companies in the same industry are more expensive than MWA, based on the Enterprise Value to EBITDA ratio.
65.38% 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 | 21.97 | ||
| EV/EBITDA | 13.01 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)0.89
EPS Next 2Y7.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.20%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.97, MWA pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.20, MWA pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.69%
Div Incr Years10
Div Non Decr Years18
5.3 Sustainability
MWA pays out 27.77% 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.
DP27.77%
EPS Next 2Y7.06%
EPS Next 3YN/A
24.3
-0.03 (-0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.44%
Inst Owner Change-2.99%
Ins Owners0.81%
Ins Owner Change-1.88%
Market Cap3.80B
Revenue(TTM)N/A
Net Income(TTM)149.10M
Analysts74
Price Target28.22 (16.13%)
Short Float %2.12%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend0.26
Dividend Growth(5Y)4.69%
DP27.77%
Div Incr Years10
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.05%
Min EPS beat(2)-0.5%
Max EPS beat(2)8.59%
EPS beat(4)3
Avg EPS beat(4)9.36%
Min EPS beat(4)-0.5%
Max EPS beat(4)28.03%
EPS beat(8)7
Avg EPS beat(8)35.64%
EPS beat(12)8
Avg EPS beat(12)25.31%
EPS beat(16)10
Avg EPS beat(16)20.28%
Revenue beat(2)2
Avg Revenue beat(2)2.43%
Min Revenue beat(2)2.38%
Max Revenue beat(2)2.47%
Revenue beat(4)4
Avg Revenue beat(4)3.71%
Min Revenue beat(4)2.38%
Max Revenue beat(4)6.15%
Revenue beat(8)8
Avg Revenue beat(8)5.61%
Revenue beat(12)10
Avg Revenue beat(12)3.85%
Revenue beat(16)12
Avg Revenue beat(16)3.53%
PT rev (1m)-3.49%
PT rev (3m)-3.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.57%
EPS NY rev (1m)0%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 17.1 | ||
| P/S | 2.72 | ||
| P/FCF | 21.97 | ||
| P/OCF | 16.87 | ||
| P/B | 4.09 | ||
| P/tB | 7.12 | ||
| EV/EBITDA | 13.01 |
EPS(TTM)1.31
EY5.39%
EPS(NY)1.42
Fwd EY5.85%
FCF(TTM)1.11
FCFY4.55%
OCF(TTM)1.44
OCFY5.93%
SpS8.94
BVpS5.94
TBVpS3.41
PEG (NY)2.19
PEG (5Y)0.89
Graham Number13.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 16.05% | ||
| ROCE | 16.62% | ||
| ROIC | 12.41% | ||
| ROICexc | 16.55% | ||
| ROICexgc | 25.65% | ||
| OM | 17.69% | ||
| PM (TTM) | 10.67% | ||
| GM | 35.14% | ||
| FCFM | 12.38% |
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%
ROICexgc growth 3Y8.33%
ROICexgc 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-Score8
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.61 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 102.15% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 41.2 | ||
| Cash Conversion | 75.46% | ||
| Profit Quality | 115.96% | ||
| Current Ratio | 3.86 | ||
| Quick Ratio | 2.56 | ||
| Altman-Z | 4.42 |
F-Score8
WACC8.94%
ROIC/WACC1.39
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)35.05%
EPS 3Y31.97%
EPS 5Y20.76%
EPS Q2Q%72.73%
EPS Next Y8.45%
EPS Next 2Y7.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.36%
Revenue Next Year4.63%
Revenue Next 2Y4.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.48%
EBIT growth 3Y15.24%
EBIT growth 5Y9.12%
EBIT Next Year54.9%
EBIT Next 3Y21.24%
EBIT Next 5YN/A
FCF growth 1Y410.03%
FCF growth 3Y26.75%
FCF growth 5Y100.55%
OCF growth 1Y167.02%
OCF growth 3Y15.08%
OCF growth 5Y20.89%
MUELLER WATER PRODUCTS INC-A / MWA FAQ
What is the fundamental rating for MWA stock?
ChartMill assigns a fundamental rating of 6 / 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 7 / 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 18.55 and the Price/Book (PB) ratio is 4.09.
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 8.45% in the next year.