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

MUELLER INDUSTRIES INC (NYSE:MLI) stands out as an affordable growth stock based on our screening criteria. The company combines solid growth prospects with reasonable valuation metrics, while maintaining strong profitability and financial health. Here’s why MLI fits the profile of a growth-at-a-reasonable-price opportunity.

Growth Prospects

• MLI has demonstrated strong earnings growth, with EPS increasing by 24.58% over the past year and an impressive 42.60% annualized growth rate over recent years.
• Revenue growth has also been robust, rising 18.81% in the last year and averaging 9.17% annually over a longer period.
• Future estimates suggest continued growth, with EPS expected to expand by 14.15% and revenue by 10.34% annually.

Attractive Valuation

• The stock trades at a P/E ratio of 15.31, below both the industry average (56.06) and the S&P 500 (27.21).
• Its forward P/E of 11.86 is also favorable compared to peers (22.19) and the broader market (21.70).
• MLI’s valuation is further supported by a PEG ratio that suggests earnings growth is reasonably priced.

Strong Profitability

• MLI earns a Profitability Rating of 9/10, with standout metrics including a 19.76% Operating Margin (better than 88% of industry peers).
• Its Return on Invested Capital (20.77%) and Return on Equity (23.40%) are well above industry averages.

Excellent Financial Health

• The company holds a perfect Health Rating of 10/10, with no debt and strong liquidity metrics.
• A Current Ratio of 4.29 and Quick Ratio of 3.24 indicate ample ability to meet short-term obligations.

For a deeper look at MLI’s fundamentals, review the full fundamental 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 always conduct your own analysis before making investment decisions.