MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MWA - US6247581084 - Common Stock
24.79 USD
-0.03 (-0.12%)
24.52 USD
-0.27 (-1.09%)
Taking everything into account, MWA scores 7 out of 10 in our fundamental rating. MWA was compared to 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 has a correct valuation and a medium growth rate. This makes MWA very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year MWA was profitable.
MWA had a positive operating cash flow in the past year.
In the past 5 years MWA has always been profitable.
Each year in the past 5 years MWA had a positive operating cash flow.
1.2 Ratios
MWA's Return On Assets of 10.42% is amongst the best of the industry. MWA outperforms 81.06% of its industry peers.
The Return On Equity of MWA (19.53%) is better than 86.36% of its industry peers.
The Return On Invested Capital of MWA (12.92%) is better 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
Looking at the Profit Margin, with a value of 13.41%, MWA belongs to the top of the industry, outperforming 82.58% of the companies in the same industry.
In the last couple of years the Profit Margin of MWA has grown nicely.
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.
MWA has a better Gross Margin (36.43%) 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
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
Compared to 1 year ago, MWA has an improved debt to assets ratio.
2.2 Solvency
MWA has an Altman-Z score of 4.33. This indicates that MWA is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.33, MWA is doing good in 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 of 0.46. This is comparable to the rest of the industry: MWA outperforms 49.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.44
WACC8.96%
2.3 Liquidity
A Current Ratio of 3.54 indicates that MWA has no problem at all paying its short term obligations.
MWA's Current ratio of 3.54 is amongst the best of the industry. MWA outperforms 85.61% of its industry peers.
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.
MWA's Quick ratio of 2.41 is amongst the best of the industry. MWA outperforms 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.
MWA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.76% yearly.
MWA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.75%.
Measured over the past years, MWA shows a quite strong growth in Revenue. The Revenue has been growing by 8.20% on average per year.
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.
Based on estimates for the next years, MWA will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 18.92, MWA is valued on the expensive side.
Based on the Price/Earnings ratio, MWA is valued a bit cheaper than 73.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, MWA is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.55 indicates a rather expensive valuation of MWA.
Based on the Price/Forward Earnings ratio, MWA is valued a bit cheaper than 69.70% of the companies in the same industry.
MWA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 17.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MWA indicates a somewhat cheap valuation: MWA is cheaper than 68.94% of the companies listed in the same industry.
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 | 22.53 | ||
| EV/EBITDA | 12.16 |
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)2.42
PEG (5Y)0.91
EPS Next 2Y7.47%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.13%.
Compared to an average industry Dividend Yield of 0.98, MWA pays a bit more dividend than its industry peers.
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 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%
24.79
-0.03 (-0.12%)
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 Cap3.88B
Revenue(TTM)1.43B
Net Income(TTM)191.70M
Analysts74
Price Target28.22 (13.84%)
Short Float %2.26%
Short Ratio2.57
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 | 18.92 | ||
| Fwd PE | 17.55 | ||
| P/S | 2.71 | ||
| P/FCF | 22.53 | ||
| P/OCF | 17.67 | ||
| P/B | 3.95 | ||
| P/tB | 6.62 | ||
| EV/EBITDA | 12.16 |
EPS(TTM)1.31
EY5.28%
EPS(NY)1.41
Fwd EY5.7%
FCF(TTM)1.1
FCFY4.44%
OCF(TTM)1.4
OCFY5.66%
SpS9.14
BVpS6.28
TBVpS3.74
PEG (NY)2.42
PEG (5Y)0.91
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 | 4.33 |
F-Score8
WACC8.96%
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 18.92 and the Price/Book (PB) ratio is 3.95.
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.