MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
NYSE:MLI - New York Stock Exchange, Inc. - US6247561029 - Common Stock - Currency: USD
Taking everything into account, MLI scores 8 out of 10 in our fundamental rating. MLI was compared to 128 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making MLI a very profitable company, without any liquidiy or solvency issues. MLI is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make MLI a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year MLI was profitable.
In the past year MLI had a positive cash flow from operations.
In the past 5 years MLI has always been profitable.
In the past 5 years MLI always reported a positive cash flow from operatings.
1.2 Ratios
MLI has a Return On Assets of 19.31%. This is amongst the best in the industry. MLI outperforms 97.66% of its industry peers.
With an excellent Return On Equity value of 23.40%, MLI belongs to the best of the industry, outperforming 88.28% of the companies in the same industry.
MLI's Return On Invested Capital of 20.77% is amongst the best of the industry. MLI outperforms 96.88% of its industry peers.
MLI had an Average Return On Invested Capital over the past 3 years of 25.47%. This is significantly above the industry average of 10.69%.
The 3 year average ROIC (25.47%) for MLI is well above the current ROIC(20.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.31% | ||
| ROE | 23.4% | ||
| ROIC | 20.77% |
ROA(3y)23.2%
ROA(5y)21.16%
ROE(3y)28.12%
ROE(5y)28.13%
ROIC(3y)25.47%
ROIC(5y)24.78%
1.3 Margins
MLI has a Profit Margin of 15.92%. This is amongst the best in the industry. MLI outperforms 90.63% of its industry peers.
MLI's Profit Margin has improved in the last couple of years.
The Operating Margin of MLI (19.76%) is better than 88.28% of its industry peers.
In the last couple of years the Operating Margin of MLI has grown nicely.
MLI has a Gross Margin (27.44%) which is in line with its industry peers.
In the last couple of years the Gross Margin of MLI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.76% | ||
| PM (TTM) | 15.92% | ||
| GM | 27.44% |
OM growth 3Y8.37%
OM growth 5Y21.34%
PM growth 3Y8.89%
PM growth 5Y31.03%
GM growth 3Y7.95%
GM growth 5Y11.43%
2. Health
2.1 Basic Checks
MLI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MLI has been reduced compared to 1 year ago.
The number of shares outstanding for MLI remains at a similar level compared to 5 years ago.
The debt/assets ratio for MLI has been reduced compared to a year ago.
2.2 Solvency
MLI has an Altman-Z score of 12.69. This indicates that MLI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.69, MLI belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
There is no outstanding debt for MLI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.69 |
ROIC/WACC2.05
WACC10.11%
2.3 Liquidity
A Current Ratio of 4.29 indicates that MLI has no problem at all paying its short term obligations.
The Current ratio of MLI (4.29) is better than 89.06% of its industry peers.
MLI has a Quick Ratio of 3.24. This indicates that MLI is financially healthy and has no problem in meeting its short term obligations.
MLI has a better Quick ratio (3.24) than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.29 | ||
| Quick Ratio | 3.24 |
3. Growth
3.1 Past
MLI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.58%, which is quite impressive.
The Earnings Per Share has been growing by 42.60% on average over the past years. This is a very strong growth
The Revenue has grown by 18.81% in the past year. This is quite good.
The Revenue has been growing by 9.17% on average over the past years. This is quite good.
EPS 1Y (TTM)24.58%
EPS 3Y8.81%
EPS 5Y42.6%
EPS Q2Q%4.13%
Revenue 1Y (TTM)18.81%
Revenue growth 3Y0%
Revenue growth 5Y9.17%
Sales Q2Q%17.71%
3.2 Future
The Earnings Per Share is expected to grow by 14.15% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.34% on average over the next years. This is quite good.
EPS Next Y14.12%
EPS Next 2Y14.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.95%
Revenue Next 2Y10.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.86 indicates a correct valuation of MLI.
Based on the Price/Earnings ratio, MLI is valued cheaper than 83.59% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.32. MLI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 10.73, which indicates a very decent valuation of MLI.
Based on the Price/Forward Earnings ratio, MLI is valued cheaper than 85.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. MLI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
80.47% of the companies in the same industry are more expensive than MLI, based on the Enterprise Value to EBITDA ratio.
MLI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MLI is cheaper than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.26 | ||
| EV/EBITDA | 8.74 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MLI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MLI's earnings are expected to grow with 14.15% in the coming years.
PEG (NY)0.98
PEG (5Y)0.33
EPS Next 2Y14.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MLI has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.90, MLI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.31, MLI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
On average, the dividend of MLI grows each year by 31.86%, which is quite nice.
MLI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of MLI decreased recently.
Dividend Growth(5Y)31.86%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
MLI pays out 15.08% of its income as dividend. This is a sustainable payout ratio.
The dividend of MLI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP15.08%
EPS Next 2Y14.15%
EPS Next 3YN/A
74.27
-2.17 (-2.84%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner Change-0.61%
Ins Owners2.45%
Ins Owner Change-3.69%
Market Cap8.22B
Analysts84
Price Target112.2 (51.07%)
Short Float %4.02%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.78
Dividend Growth(5Y)31.86%
DP15.08%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.1%
Min EPS beat(2)-4.77%
Max EPS beat(2)6.97%
EPS beat(4)3
Avg EPS beat(4)5.36%
Min EPS beat(4)-4.77%
Max EPS beat(4)11.01%
EPS beat(8)6
Avg EPS beat(8)24.03%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.56%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)2.4%
Revenue beat(4)3
Avg Revenue beat(4)3.78%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)8.44%
Revenue beat(8)5
Avg Revenue beat(8)2.9%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.76%
PT rev (3m)4.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.53%
EPS NY rev (1m)0%
EPS NY rev (3m)6.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 10.73 | ||
| P/S | 2.1 | ||
| P/FCF | 16.26 | ||
| P/OCF | 14.03 | ||
| P/B | 3.08 | ||
| P/tB | 4 | ||
| EV/EBITDA | 8.74 |
EPS(TTM)5.36
EY7.22%
EPS(NY)6.92
Fwd EY9.32%
FCF(TTM)4.57
FCFY6.15%
OCF(TTM)5.29
OCFY7.13%
SpS35.42
BVpS24.1
TBVpS18.56
PEG (NY)0.98
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.31% | ||
| ROE | 23.4% | ||
| ROCE | 27.9% | ||
| ROIC | 20.77% | ||
| ROICexc | 30.31% | ||
| ROICexgc | 44.73% | ||
| OM | 19.76% | ||
| PM (TTM) | 15.92% | ||
| GM | 27.44% | ||
| FCFM | 12.9% |
ROA(3y)23.2%
ROA(5y)21.16%
ROE(3y)28.12%
ROE(5y)28.13%
ROIC(3y)25.47%
ROIC(5y)24.78%
ROICexc(3y)43.75%
ROICexc(5y)36.53%
ROICexgc(3y)55.94%
ROICexgc(5y)46.4%
ROCE(3y)34.22%
ROCE(5y)33.28%
ROICexcg growth 3Y2.37%
ROICexcg growth 5Y22.58%
ROICexc growth 3Y-4.41%
ROICexc growth 5Y18.23%
OM growth 3Y8.37%
OM growth 5Y21.34%
PM growth 3Y8.89%
PM growth 5Y31.03%
GM growth 3Y7.95%
GM growth 5Y11.43%
F-Score5
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 131.25% | ||
| Cap/Sales | 2.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.12% | ||
| Profit Quality | 81.01% | ||
| Current Ratio | 4.29 | ||
| Quick Ratio | 3.24 | ||
| Altman-Z | 12.69 |
F-Score5
WACC10.11%
ROIC/WACC2.05
Cap/Depr(3y)124%
Cap/Depr(5y)108.01%
Cap/Sales(3y)1.55%
Cap/Sales(5y)1.47%
Profit Quality(3y)100.14%
Profit Quality(5y)100.88%
High Growth Momentum
Growth
EPS 1Y (TTM)24.58%
EPS 3Y8.81%
EPS 5Y42.6%
EPS Q2Q%4.13%
EPS Next Y14.12%
EPS Next 2Y14.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.81%
Revenue growth 3Y0%
Revenue growth 5Y9.17%
Sales Q2Q%17.71%
Revenue Next Year12.95%
Revenue Next 2Y10.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.99%
EBIT growth 3Y8.36%
EBIT growth 5Y32.46%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-31.01%
FCF growth 3Y26.43%
FCF growth 5Y27.29%
OCF growth 1Y-24.17%
OCF growth 3Y27.49%
OCF growth 5Y26.36%