MUELLER INDUSTRIES INC (NYSE:MLI) – A Strong Contender in Affordable Growth Stocks

MUELLER INDUSTRIES INC (NYSE:MLI) was identified by our stock screener as an attractive affordable growth candidate. The company combines solid growth prospects with reasonable valuation metrics while maintaining strong financial health and profitability. Below, we break down why MLI stands out in these areas.

Growth Prospects

MLI has demonstrated strong historical growth, with earnings per share (EPS) increasing by 42.6% on average over recent years. Revenue growth has also been healthy, rising 18.8% in the past year and averaging 9.2% annually. Looking ahead, analysts expect continued growth, with EPS projected to climb 14.2% and revenue increasing by 10.3% annually.

Valuation

Despite its growth trajectory, MLI remains reasonably priced. The stock trades at a P/E ratio of 14.8, below both the industry average (45.6) and the S&P 500 (26.7). Its forward P/E of 11.5 suggests further upside potential. Additionally, MLI’s enterprise value to EBITDA and price-to-free cash flow ratios indicate it is undervalued relative to most peers.

Financial Health & Profitability

MLI excels in financial stability, earning a perfect 10/10 health rating. The company carries no debt, boasts strong liquidity (current ratio of 4.3), and has an exceptional Altman-Z score of 13.3, signaling low bankruptcy risk. Profitability is another strength, with a return on invested capital (ROIC) of 20.8% and an operating margin of 19.8%, both well above industry averages.

For a deeper dive into MLI’s fundamentals, review the full analysis report.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated regularly.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.