MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
NYSE:MLI - US6247561029 - Common Stock
96.54 USD
+0.57 (+0.59%)
96.54 USD
0 (0%)
MLI gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 127 industry peers in the Machinery industry. MLI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MLI is not valued too expensively and it also shows a decent growth rate. These ratings could make MLI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
MLI had positive earnings in the past year.
In the past year MLI had a positive cash flow from operations.
Each year in the past 5 years MLI has been profitable.
Each year in the past 5 years MLI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.35%, MLI belongs to the top of the industry, outperforming 99.21% of the companies in the same industry.
MLI's Return On Equity of 24.33% is amongst the best of the industry. MLI outperforms 88.98% of its industry peers.
With an excellent Return On Invested Capital value of 20.43%, MLI belongs to the best of the industry, outperforming 96.06% of the companies in the same industry.
MLI had an Average Return On Invested Capital over the past 3 years of 25.47%. This is significantly above the industry average of 10.48%.
The 3 year average ROIC (25.47%) for MLI is well above the current ROIC(20.43%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.35% | ||
| ROE | 24.33% | ||
| ROIC | 20.43% |
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
With an excellent Profit Margin value of 17.48%, MLI belongs to the best of the industry, outperforming 92.91% of the companies in the same industry.
In the last couple of years the Profit Margin of MLI has grown nicely.
MLI has a better Operating Margin (20.49%) than 89.76% of its industry peers.
In the last couple of years the Operating Margin of MLI has grown nicely.
Looking at the Gross Margin, with a value of 28.47%, MLI is in line with its industry, outperforming 43.31% of the companies in the same industry.
MLI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.49% | ||
| PM (TTM) | 17.48% | ||
| GM | 28.47% |
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.
Compared to 1 year ago, MLI has less shares outstanding
The number of shares outstanding for MLI remains at a similar level compared to 5 years ago.
MLI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 15.11 indicates that MLI is not in any danger for bankruptcy at the moment.
MLI's Altman-Z score of 15.11 is amongst the best of the industry. MLI outperforms 96.85% of its industry peers.
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 | 15.11 |
ROIC/WACC2.06
WACC9.9%
2.3 Liquidity
MLI has a Current Ratio of 4.86. This indicates that MLI is financially healthy and has no problem in meeting its short term obligations.
MLI has a better Current ratio (4.86) than 92.13% of its industry peers.
A Quick Ratio of 3.73 indicates that MLI has no problem at all paying its short term obligations.
MLI has a better Quick ratio (3.73) than 92.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.86 | ||
| Quick Ratio | 3.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.13% over the past year.
MLI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.60% yearly.
Looking at the last year, MLI shows a quite strong growth in Revenue. The Revenue has grown by 19.42% in the last year.
MLI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.17% yearly.
EPS 1Y (TTM)23.13%
EPS 3Y8.81%
EPS 5Y42.6%
EPS Q2Q%39.01%
Revenue 1Y (TTM)19.42%
Revenue growth 3Y0%
Revenue growth 5Y9.17%
Sales Q2Q%14.07%
3.2 Future
Based on estimates for the next years, MLI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.17% on average per year.
MLI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.57% yearly.
EPS Next Y25.73%
EPS Next 2Y12.97%
EPS Next 3Y10.17%
EPS Next 5YN/A
Revenue Next Year12.11%
Revenue Next 2Y9.77%
Revenue Next 3Y7.57%
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
MLI is valuated correctly with a Price/Earnings ratio of 16.34.
Compared to the rest of the industry, the Price/Earnings ratio of MLI indicates a rather cheap valuation: MLI is cheaper than 81.10% of the companies listed in the same industry.
MLI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.14.
With a Price/Forward Earnings ratio of 14.25, MLI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MLI indicates a somewhat cheap valuation: MLI is cheaper than 79.53% of the companies listed in the same industry.
MLI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLI is valued a bit cheaper than the industry average as 77.17% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MLI indicates a somewhat cheap valuation: MLI is cheaper than 72.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.1 | ||
| EV/EBITDA | 10.56 |
4.3 Compensation for Growth
MLI's 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.
PEG (NY)0.63
PEG (5Y)0.38
EPS Next 2Y12.97%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, MLI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.87, MLI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.10, MLI pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of MLI is nicely growing with an annual growth rate of 31.86%!
MLI has been paying a dividend for at least 10 years, so it has a reliable track record.
MLI has decreased its dividend recently.
Dividend Growth(5Y)31.86%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
13.95% of the earnings are spent on dividend by MLI. This is a low number and sustainable payout ratio.
MLI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.95%
EPS Next 2Y12.97%
EPS Next 3Y10.17%
96.54
+0.57 (+0.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.64%
Inst Owner Change-5.62%
Ins Owners2.35%
Ins Owner Change0.75%
Market Cap10.69B
Analysts83.33
Price Target116.79 (20.98%)
Short Float %2.27%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.78
Dividend Growth(5Y)31.86%
DP13.95%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.7%
Min EPS beat(2)-4.77%
Max EPS beat(2)20.16%
EPS beat(4)3
Avg EPS beat(4)8.34%
Min EPS beat(4)-4.77%
Max EPS beat(4)20.16%
EPS beat(8)7
Avg EPS beat(8)29.64%
EPS beat(12)10
Avg EPS beat(12)25.17%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-1.27%
Max Revenue beat(2)0.63%
Revenue beat(4)3
Avg Revenue beat(4)1.83%
Min Revenue beat(4)-1.27%
Max Revenue beat(4)5.55%
Revenue beat(8)6
Avg Revenue beat(8)4.75%
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)12.81%
PT rev (3m)9.05%
EPS NQ rev (1m)5.3%
EPS NQ rev (3m)6%
EPS NY rev (1m)11.84%
EPS NY rev (3m)10.17%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 14.25 | ||
| P/S | 2.63 | ||
| P/FCF | 18.1 | ||
| P/OCF | 15.82 | ||
| P/B | 3.66 | ||
| P/tB | 4.61 | ||
| EV/EBITDA | 10.56 |
EPS(TTM)5.91
EY6.12%
EPS(NY)6.78
Fwd EY7.02%
FCF(TTM)5.33
FCFY5.52%
OCF(TTM)6.1
OCFY6.32%
SpS36.67
BVpS26.35
TBVpS20.96
PEG (NY)0.63
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.35% | ||
| ROE | 24.33% | ||
| ROCE | 27.44% | ||
| ROIC | 20.43% | ||
| ROICexc | 31.39% | ||
| ROICexgc | 44.97% | ||
| OM | 20.49% | ||
| PM (TTM) | 17.48% | ||
| GM | 28.47% | ||
| FCFM | 14.54% |
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-Score8
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 123.51% | ||
| Cap/Sales | 2.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75% | ||
| Profit Quality | 83.19% | ||
| Current Ratio | 4.86 | ||
| Quick Ratio | 3.73 | ||
| Altman-Z | 15.11 |
F-Score8
WACC9.9%
ROIC/WACC2.06
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)23.13%
EPS 3Y8.81%
EPS 5Y42.6%
EPS Q2Q%39.01%
EPS Next Y25.73%
EPS Next 2Y12.97%
EPS Next 3Y10.17%
EPS Next 5YN/A
Revenue 1Y (TTM)19.42%
Revenue growth 3Y0%
Revenue growth 5Y9.17%
Sales Q2Q%14.07%
Revenue Next Year12.11%
Revenue Next 2Y9.77%
Revenue Next 3Y7.57%
Revenue Next 5YN/A
EBIT growth 1Y17.13%
EBIT growth 3Y8.36%
EBIT growth 5Y32.46%
EBIT Next Year48.57%
EBIT Next 3Y16.75%
EBIT Next 5YN/A
FCF growth 1Y-18.74%
FCF growth 3Y26.43%
FCF growth 5Y27.29%
OCF growth 1Y-12.27%
OCF growth 3Y27.49%
OCF growth 5Y26.36%