Mueller Industries Inc (NYSE:MLI): A Prime GARP Stock with Strong Growth and a Reasonable Price

Investors looking for growth chances at sensible prices frequently use the Growth At Reasonable Price (GARP) method, which aims at companies showing solid development potential without high valuation costs. This method mixes the search for earnings growth with fundamental analysis, concentrating on businesses that mix sound financial condition, earnings power, and lasting growth paths. One company that recently appeared through an "Affordable Growth" screening process is MUELLER INDUSTRIES INC (NYSE:MLI), a producer focusing on copper, brass, aluminum, and plastic goods.

Growth Path

The company's growth outline presents a strong case for investors looking for development potential. Mueller Industries shows solid past results paired with positive future estimates that match well with affordable growth standards.

• Earnings Per Share has increased at a notable 42.60% average each year in recent times
• Sales grew by 15.71% over the last year with a 9.17% average yearly growth rate
• Future EPS growth is estimated at 12.67% each year
• Sales growth projections stay firm at 8.13% for the next years

This steady growth pattern across both past and forecasted measurements points to a business with lasting development drivers instead of short-term jumps. The steadiness between previous results and future outlook lowers the risk commonly linked with high-growth investments, making it especially interesting for GARP-centered methods that value dependable growth over uncertain forecasts.

Valuation Check

Mueller Industries trades at price levels that seem sensible compared to both its industry group and wider market benchmarks, forming an interesting point of entry for growth-focused investors.

• P/E ratio of 16.77 looks good against industry average of 34.03
• Future P/E of 14.26 is lower than industry average of 18.55
• Enterprise Value/EBITDA ratio is lower priced than 69% of industry rivals
• Price/Free Cash Flow ratio places the company as more economical than 72% of peers

The valuation measurements become especially interesting when thinking about the company's growth speeds and earnings power. The PEG ratio, which changes the P/E multiple for anticipated growth, suggests the stock could be priced below its value given its earnings development potential. For affordable growth investors, this mix of sensible multiples and solid growth forms the preferred situation where they are not paying too much for future performance.

Profitability Level

The company's excellent earnings power gives fundamental backing for its growth story and lowers performance risk. Mueller Industries shows operational quality that changes directly into returns for shareholders.

• Return on Invested Capital of 20.73% is better than 97% of industry group
• Three-year average ROIC of 25.47% is much higher than industry average of 10.24%
• Earnings margin of 18.10% is superior to 95% of competitors
• Operating margin of 21.48% is higher than 92% of industry equivalents

These profitability measurements are vital for the affordable growth method because they show the company can effectively turn sales into profits and put those earnings back to work to support future development. High returns on capital imply management can use resources well to continue growth without needing large outside money.

Financial Condition

Mueller Industries keeps a balance sheet that offers notable steadiness and room for action, a key factor for growth investors worried about money risk during economic shifts.

• Altman-Z score of 15.24 shows very little chance of failure
• Current ratio of 4.82 and quick ratio of 3.81 show solid cash position
• No long-term debt gives money options
• Getting better debt-to-assets ratio shows firmer money situation

The flawless condition rating backs the affordable growth idea by making sure the company has the money ability to handle economic drops while still putting funds into growth projects. The lack of debt removes interest cost and failure risk, letting more capital be used for development chances.

Dividend Points

While not a main point for growth investors, the company's dividend plan gives extra background for total return potential.

• Present yield of 0.93% offers a small income part
• Dividend growth speed of 31.86% shows dedication to shareholder returns
• Payout ratio of 13.89% stays workable
• Ten-year payment record shows dependability

The small but increasing dividend adds to the growth story by offering a total return part while keeping enough profits for reinvestment. The low payout ratio makes certain the company keeps enough money to follow development chances without hurting dividend steadiness.

Investment Points

Mueller Industries presents a strong case for affordable growth investors looking for companies with solid development potential at sensible prices. The mix of double-digit earnings growth, excellent profitability measurements, and perfect financial condition forms an outline that matches well with GARP method. The company's price multiples, especially when seen with its growth speeds and returns on capital, imply possible mispricing relative to its fundamental strength.

For investors wanting to find similar chances, more screening results are available through this Affordable Growth Stock Screener that finds companies meeting these particular standards. A more complete fundamental review of Mueller Industries is in the full fundamental report.

Disclaimer: This review is based on fundamental data and screening processes for information only. It is not investment guidance, a suggestion, or support of any security. Investors should do their own study and talk with financial consultants before making investment choices. Past results do not assure future outcomes, and all investments have risk including possible loss of original money.