MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
USA - NYSE:MLI - US6247561029 - Common Stock
99.66 USD
-0.59 (-0.59%)
99.85 USD
+0.19 (+0.19%)
We assign a fundamental rating of 8 out of 10 to MLI. MLI was compared to 129 industry peers in the Machinery industry. MLI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MLI has a correct valuation and a medium 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.
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 better Return On Assets (20.35%) than 99.22% of its industry peers.
Looking at the Return On Equity, with a value of 24.33%, MLI belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.
The Return On Invested Capital of MLI (20.43%) is better than 96.90% 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 10.02%.
The last Return On Invested Capital (20.43%) for MLI is well below the 3 year average (25.47%), which needs to be investigated, but indicates that MLI had better years and this may not be a problem.
| 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
The Profit Margin of MLI (17.48%) is better than 94.57% of its industry peers.
MLI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 20.49%, MLI belongs to the best of the industry, outperforming 89.92% of the companies in the same industry.
MLI's Operating Margin has improved in the last couple of years.
MLI has a Gross Margin of 28.47%. This is comparable to the rest of the industry: MLI outperforms 44.19% of its industry peers.
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
MLI has about the same amout of shares outstanding than it did 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 15.54. This indicates that MLI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MLI (15.54) is better than 96.90% 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 | 15.54 |
ROIC/WACC2.04
WACC10.03%
2.3 Liquidity
A Current Ratio of 4.86 indicates that MLI has no problem at all paying its short term obligations.
MLI has a better Current ratio (4.86) than 91.47% of its industry peers.
MLI has a Quick Ratio of 3.73. This indicates that MLI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.73, MLI belongs to the best of the industry, outperforming 92.25% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 42.60% on average over the past years. This is a very strong growth
MLI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.42%.
The Revenue has been growing by 9.17% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 10.17% on average over the next years. This is quite good.
Based on estimates for the next years, MLI will show a small growth in Revenue. The Revenue will grow by 7.57% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 16.86.
Based on the Price/Earnings ratio, MLI is valued a bit cheaper than 79.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, MLI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.71, the valuation of MLI can be described as correct.
79.07% of the companies in the same industry are more expensive than MLI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, MLI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLI is valued a bit cheaper than the industry average as 75.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MLI is valued a bit cheaper than 68.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.69 | ||
| EV/EBITDA | 11.01 |
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.
The excellent profitability rating of MLI may justify a higher PE ratio.
PEG (NY)0.66
PEG (5Y)0.4
EPS Next 2Y12.97%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
With a yearly dividend of 1.00%, MLI is not a good candidate for dividend investing.
MLI's Dividend Yield is a higher than the industry average which is at 1.73.
With a Dividend Yield of 1.00, MLI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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 13.95% 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.
DP13.95%
EPS Next 2Y12.97%
EPS Next 3Y10.17%
99.66
-0.59 (-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%
Market Cap11.03B
Analysts83.33
Price Target116.79 (17.19%)
Short Float %1.76%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 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)0%
PT rev (3m)4.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.36%
EPS NY rev (1m)0%
EPS NY rev (3m)10.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 14.71 | ||
| P/S | 2.72 | ||
| P/FCF | 18.69 | ||
| P/OCF | 16.33 | ||
| P/B | 3.78 | ||
| P/tB | 4.75 | ||
| EV/EBITDA | 11.01 |
EPS(TTM)5.91
EY5.93%
EPS(NY)6.78
Fwd EY6.8%
FCF(TTM)5.33
FCFY5.35%
OCF(TTM)6.1
OCFY6.12%
SpS36.67
BVpS26.35
TBVpS20.96
PEG (NY)0.66
PEG (5Y)0.4
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 | 15.54 |
F-Score8
WACC10.03%
ROIC/WACC2.04
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%