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Why Quality Investors May Find MUELLER INDUSTRIES INC (NYSE:MLI) Attractive.

By Mill Chart

Last update: Jan 8, 2024

In this article we will dive into MUELLER INDUSTRIES INC (NYSE:MLI) as a possible candidate for quality investing. Investors should always do their own research, but we noticed MUELLER INDUSTRIES INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Looking into the quality metrics of MUELLER INDUSTRIES INC

  • MUELLER INDUSTRIES INC has achieved substantial revenue growth over the past 5 years, with a 11.94% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a robust ROIC excluding cash and goodwill at 56.69%, MUELLER INDUSTRIES INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a favorable Debt/Free Cash Flow Ratio of 0.0, MUELLER INDUSTRIES INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a favorable Profit Quality (5-year) ratio of 120.0%, MUELLER INDUSTRIES INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • MUELLER INDUSTRIES INC has consistently achieved strong EBIT growth over the past 5 years, with a 40.86% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • The EBIT 5-year growth of MUELLER INDUSTRIES INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall MLI gets a fundamental rating of 7 out of 10. We evaluated MLI against 132 industry peers in the Machinery industry. MLI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MLI is valued quite cheap, but it does not seem to be growing. These ratings could make MLI a good candidate for value investing.

Our latest full fundamental report of MLI contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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MUELLER INDUSTRIES INC

NYSE:MLI (4/22/2024, 11:47:50 AM)

53.1

+0.82 (+1.57%)

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