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 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. With these ratings, MWA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
MWA had positive earnings in the past year.
In the past year MWA had a positive cash flow from operations.
MWA had positive earnings in each of the past 5 years.
In the past 5 years MWA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.08%, MWA is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
MWA has a Return On Equity of 14.31%. This is in the better half of the industry: MWA outperforms 70.00% of its industry peers.
The Return On Invested Capital of MWA (11.59%) is better than 76.92% 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 10.90%.
The last Return On Invested Capital (11.59%) for MWA is above the 3 year average (9.01%), which is a sign of increasing profitability.
| 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
MWA has a better Profit Margin (8.82%) than 66.15% of its industry peers.
MWA's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 16.26%, MWA is doing good in the industry, outperforming 78.46% of the companies in the same industry.
In the last couple of years the Operating Margin of MWA has grown nicely.
MWA has a better Gross Margin (34.91%) than 60.77% of its industry peers.
MWA's Gross Margin has been stable in the last couple of years.
| 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
An Altman-Z score of 3.97 indicates that MWA is not in any danger for bankruptcy at the moment.
MWA has a Altman-Z score of 3.97. This is in the better half of the industry: MWA outperforms 65.38% 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.
The Debt to FCF ratio of MWA (2.35) is better than 78.46% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that MWA is somewhat dependend on debt financing.
MWA has a worse Debt to Equity ratio (0.55) than 60.00% of its industry peers.
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 | 3.97 |
ROIC/WACC1.34
WACC8.66%
2.3 Liquidity
A Current Ratio of 3.33 indicates that MWA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.33, MWA belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
A Quick Ratio of 2.16 indicates that MWA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.16, MWA is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.16 |
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.
MWA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.36% yearly.
MWA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.06%.
The Revenue has been growing slightly by 6.31% on average over the past years.
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
Based on estimates for the next years, MWA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.47% on average per year.
MWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y20.44%
EPS Next 2Y15.9%
EPS Next 3Y9.47%
EPS Next 5YN/A
Revenue Next Year5.31%
Revenue Next 2Y5.36%
Revenue Next 3Y3.59%
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 stable.
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 23.65, MWA is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of MWA is on the same level as its industry peers.
MWA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
MWA is valuated rather expensively with a Price/Forward Earnings ratio of 19.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MWA indicates a somewhat cheap valuation: MWA is cheaper than 64.62% of the companies listed in the same industry.
MWA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.65 | ||
| Fwd PE | 19.64 |
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 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.73 | ||
| EV/EBITDA | 13.3 |
4.3 Compensation for Growth
MWA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MWA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)2.53
EPS Next 2Y15.9%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.17%. 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 1.69.
With a Dividend Yield of 1.17, MWA pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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 34.43% of its income as dividend. This is a sustainable payout ratio.
MWA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.43%
EPS Next 2Y15.9%
EPS Next 3Y9.47%
MUELLER WATER PRODUCTS INC-A
NYSE:MWA (12/20/2024, 8:26:11 PM)
After market: 22.94 0 (0%)22.94
+0.07 (+0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.18%
Inst Owner Change0.5%
Ins Owners0.84%
Ins Owner Change0.19%
Market Cap3.58B
Analysts74
Price Target26.86 (17.09%)
Short Float %1.74%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Dividend Growth(5Y)4.69%
DP34.43%
Div Incr Years10
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.12%
Min EPS beat(2)1.31%
Max EPS beat(2)42.93%
EPS beat(4)4
Avg EPS beat(4)53.35%
Min EPS beat(4)1.31%
Max EPS beat(4)104.85%
EPS beat(8)6
Avg EPS beat(8)37.18%
EPS beat(12)8
Avg EPS beat(12)27.08%
EPS beat(16)11
Avg EPS beat(16)21.23%
Revenue beat(2)2
Avg Revenue beat(2)6.65%
Min Revenue beat(2)6.15%
Max Revenue beat(2)7.15%
Revenue beat(4)4
Avg Revenue beat(4)7.84%
Min Revenue beat(4)1.29%
Max Revenue beat(4)16.78%
Revenue beat(8)6
Avg Revenue beat(8)4.39%
Revenue beat(12)9
Avg Revenue beat(12)4.09%
Revenue beat(16)12
Avg Revenue beat(16)4.84%
PT rev (1m)11.27%
PT rev (3m)13.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.89%
EPS NY rev (1m)6.44%
EPS NY rev (3m)10.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.9%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.65 | ||
| Fwd PE | 19.64 | ||
| P/S | 2.73 | ||
| P/FCF | 18.73 | ||
| P/OCF | 15.01 | ||
| P/B | 4.42 | ||
| P/tB | 8.54 | ||
| EV/EBITDA | 13.3 |
EPS(TTM)0.97
EY4.23%
EPS(NY)1.17
Fwd EY5.09%
FCF(TTM)1.22
FCFY5.34%
OCF(TTM)1.53
OCFY6.66%
SpS8.41
BVpS5.18
TBVpS2.69
PEG (NY)1.16
PEG (5Y)2.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.08% | ||
| ROE | 14.31% | ||
| ROCE | 15.52% | ||
| ROIC | 11.59% | ||
| ROICexc | 14.95% | ||
| ROICexgc | 23.57% | ||
| OM | 16.26% | ||
| PM (TTM) | 8.82% | ||
| GM | 34.91% | ||
| FCFM | 14.56% |
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%
ROICexcg growth 3Y8.33%
ROICexcg 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 71.6% | ||
| Cap/Sales | 3.61% | ||
| Interest Coverage | 21.38 | ||
| Cash Conversion | 85.29% | ||
| Profit Quality | 165.14% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 3.97 |
F-Score8
WACC8.66%
ROIC/WACC1.34
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)51.56%
EPS 3Y20.82%
EPS 5Y9.36%
EPS Q2Q%15.79%
EPS Next Y20.44%
EPS Next 2Y15.9%
EPS Next 3Y9.47%
EPS Next 5YN/A
Revenue 1Y (TTM)3.06%
Revenue growth 3Y5.77%
Revenue growth 5Y6.31%
Sales Q2Q%15.53%
Revenue Next Year5.31%
Revenue Next 2Y5.36%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
EBIT growth 1Y55.38%
EBIT growth 3Y15.24%
EBIT growth 5Y9.12%
EBIT Next Year46.5%
EBIT Next 3Y16.3%
EBIT Next 5YN/A
FCF growth 1Y211.73%
FCF growth 3Y26.75%
FCF growth 5Y100.55%
OCF growth 1Y119.08%
OCF growth 3Y15.08%
OCF growth 5Y20.89%