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 affordable growth candidate. The company combines solid growth prospects with reasonable valuation metrics while maintaining strong profitability and financial health. Below, we break down why MLI stands out in these areas.

Growth Prospects

• Past Growth: MLI has demonstrated strong historical growth, with earnings per share (EPS) increasing by 24.58% over the past year and averaging 42.60% annually over recent years. Revenue growth has also been robust, rising 18.81% in the last year.
• Future Expectations: Analysts project continued growth, with EPS expected to expand by 14.15% annually and revenue forecast to grow at 10.34% per year.

Valuation

• Attractive Multiples: MLI trades at a P/E ratio of 14.44, which is lower than both the industry average (47.26) and the S&P 500 (26.55). Its forward P/E of 11.19 further suggests the stock is reasonably priced.
• Undervalued Metrics: The company’s Enterprise Value/EBITDA and Price/Free Cash Flow ratios are cheaper than most peers, reinforcing its appeal for value-conscious investors.

Profitability & Financial Health

• High Profit Margins: MLI boasts a 19.76% operating margin and a 15.92% net profit margin, outperforming most competitors.
• Strong Balance Sheet: The company has no debt, a current ratio of 4.29, and an Altman-Z score of 13.06, indicating excellent liquidity and solvency.

For a deeper look at MLI’s fundamentals, review the full analysis report.

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

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.