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Why MUELLER INDUSTRIES INC (NYSE:MLI) Deserves Consideration as a Quality Investment.

By Mill Chart

Last update: Feb 22, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if MUELLER INDUSTRIES INC (NYSE:MLI) is suited for quality investing. Investors should of course do their own research, but we spotted MUELLER INDUSTRIES INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Key Considerations for Quality Investors.

  • Over the past 5 years, MUELLER INDUSTRIES INC has experienced impressive revenue growth, with 6.4% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • The ROIC excluding cash and goodwill of MUELLER INDUSTRIES INC stands at 46.72%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • The Debt/Free Cash Flow Ratio of MUELLER INDUSTRIES INC stands at 0.0, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • MUELLER INDUSTRIES INC demonstrates consistent Profit Quality over the past 5 years, with a strong 116.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • MUELLER INDUSTRIES INC has consistently achieved strong EBIT growth over the past 5 years, with a 34.39% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • MUELLER INDUSTRIES INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete fundamental analysis of NYSE:MLI

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Taking everything into account, MLI scores 7 out of 10 in our fundamental rating. MLI was compared to 133 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.

For an up to date full fundamental analysis you can check the fundamental report of MLI

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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