MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MWA - US6247581084 - Common Stock
26.57 USD
-0.27 (-1.01%)
26.57 USD
0 (0%)
MWA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. MWA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
- MWA had a positive operating cash flow in the past year.
- Each year in the past 5 years MWA has 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.
- Looking at the Return On Equity, with a value of 19.53%, MWA belongs to the top of the industry, outperforming 87.12% of the companies in the same industry.
- MWA has a better Return On Invested Capital (12.92%) than 80.30% 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 10.24%.
- 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
- With an excellent Profit Margin value of 13.41%, MWA belongs to the best 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 has a Operating Margin of 19.13%. This is amongst the best in 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 Gross Margin of 36.43%. This is in the better half of the industry: MWA outperforms 67.42% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MWA is creating some value.
- The number of shares outstanding for MWA remains at a similar level compared to 1 year ago.
- MWA has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MWA has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.53 indicates that MWA is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.53, MWA is doing good in the industry, outperforming 68.18% 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's Debt to FCF ratio of 2.63 is fine compared to the rest of the industry. MWA outperforms 71.97% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 4.53 |
ROIC/WACC1.39
WACC9.3%
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.
- The Current ratio of MWA (3.54) is better than 86.36% 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
- 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
- Looking at the last year, MWA shows a quite strong growth in Revenue. The Revenue has grown by 8.75% in the last year.
- 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.
- 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 Y7.94%
EPS Next 2Y7.84%
EPS Next 3Y3.79%
EPS Next 5YN/A
Revenue Next Year4.07%
Revenue Next 2Y4.02%
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 20.28, which indicates a rather expensive current valuation of MWA.
- Compared to the rest of the industry, the Price/Earnings ratio of MWA indicates a somewhat cheap valuation: MWA is cheaper than 75.76% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, MWA is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 18.79, the valuation of MWA can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, MWA is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
- MWA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MWA is valued a bit cheaper than 68.18% of the companies in the same industry.
- MWA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MWA is cheaper than 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.15 | ||
| EV/EBITDA | 13.03 |
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)2.55
PEG (5Y)0.98
EPS Next 2Y7.84%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
- MWA has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
- 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 1.81, MWA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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 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
- MWA pays out 21.86% of its income as dividend. This is a sustainable payout ratio.
- The dividend of MWA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP21.86%
EPS Next 2Y7.84%
EPS Next 3Y3.79%
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.
Can you provide the valuation status for MUELLER WATER PRODUCTS INC-A?
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 are the PE and PB ratios of MUELLER WATER PRODUCTS INC-A (MWA) stock?
The Price/Earnings (PE) ratio for MUELLER WATER PRODUCTS INC-A (MWA) is 20.28 and the Price/Book (PB) ratio is 4.23.
Can you provide the expected EPS growth for MWA stock?
The Earnings per Share (EPS) of MUELLER WATER PRODUCTS INC-A (MWA) is expected to grow by 7.94% in the next year.