MUELLER INDUSTRIES INC (MLI) Stock Fundamental Analysis
NYSE:MLI - New York Stock Exchange, Inc. - US6247561029 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to MLI. MLI was compared to 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 has a correct valuation and a medium growth rate. With these ratings, MLI could be worth investigating further for 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.
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
MLI's Return On Assets of 19.31% is amongst the best of the industry. MLI outperforms 97.64% of its industry peers.
With an excellent Return On Equity value of 23.40%, MLI belongs to the best of the industry, outperforming 88.19% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.77%, MLI belongs to the top of the industry, outperforming 96.85% 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 10.78%.
The last Return On Invested Capital (20.77%) 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 | 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
The Profit Margin of MLI (15.92%) is better than 90.55% of its industry peers.
In the last couple of years the Profit Margin of MLI has grown nicely.
The Operating Margin of MLI (19.76%) is better than 88.19% 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.
MLI's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MLI 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.
MLI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 13.91 indicates that MLI is not in any danger for bankruptcy at the moment.
The Altman-Z score of MLI (13.91) is better than 96.06% 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 | 13.91 |
ROIC/WACC2.1
WACC9.91%
2.3 Liquidity
A Current Ratio of 4.29 indicates that MLI has no problem at all paying its short term obligations.
MLI's Current ratio of 4.29 is amongst the best of the industry. MLI outperforms 88.98% of its industry peers.
A Quick Ratio of 3.24 indicates that MLI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.24, MLI belongs to the best of the industry, outperforming 90.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.29 | ||
| Quick Ratio | 3.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.58% 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 18.81% in the last year.
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 7.66% on average over the next years.
Based on estimates for the next years, MLI will show a small growth in Revenue. The Revenue will grow by 7.59% on average per year.
EPS Next Y12.41%
EPS Next 2Y11.32%
EPS Next 3Y7.66%
EPS Next 5YN/A
Revenue Next Year12.37%
Revenue Next 2Y9.7%
Revenue Next 3Y7.59%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.78, the valuation of MLI can be described as correct.
MLI's Price/Earnings ratio is a bit cheaper when compared to the industry. MLI is cheaper than 76.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. MLI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.86, the valuation of MLI can be described as correct.
MLI's Price/Forward Earnings ratio is rather cheap when compared to the industry. MLI is cheaper than 81.10% of the companies in the same industry.
MLI is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLI is valued a bit cheaper than 74.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MLI is valued a bit cheaper than 66.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.52 | ||
| EV/EBITDA | 10.11 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of MLI may justify a higher PE ratio.
PEG (NY)1.27
PEG (5Y)0.37
EPS Next 2Y11.32%
EPS Next 3Y7.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, MLI has a reasonable but not impressive dividend return.
MLI's Dividend Yield is a higher than the industry average which is at 1.82.
With a Dividend Yield of 1.17, MLI pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of MLI is nicely growing with an annual growth rate of 31.86%!
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 2Y11.32%
EPS Next 3Y7.66%
84.59
-1.28 (-1.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.41%
Inst Owner Change0%
Ins Owners2.45%
Ins Owner Change-4.38%
Market Cap9.36B
Analysts83.33
Price Target112.2 (32.64%)
Short Float %2.14%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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)0%
PT rev (3m)4.76%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)2.22%
EPS NY rev (1m)-1.5%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)0.98%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 12.86 | ||
| P/S | 2.39 | ||
| P/FCF | 18.52 | ||
| P/OCF | 15.98 | ||
| P/B | 3.51 | ||
| P/tB | 4.56 | ||
| EV/EBITDA | 10.11 |
EPS(TTM)5.36
EY6.34%
EPS(NY)6.58
Fwd EY7.78%
FCF(TTM)4.57
FCFY5.4%
OCF(TTM)5.29
OCFY6.26%
SpS35.42
BVpS24.1
TBVpS18.56
PEG (NY)1.27
PEG (5Y)0.37
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 | 13.91 |
F-Score5
WACC9.91%
ROIC/WACC2.1
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 Y12.41%
EPS Next 2Y11.32%
EPS Next 3Y7.66%
EPS Next 5YN/A
Revenue 1Y (TTM)18.81%
Revenue growth 3Y0%
Revenue growth 5Y9.17%
Sales Q2Q%17.71%
Revenue Next Year12.37%
Revenue Next 2Y9.7%
Revenue Next 3Y7.59%
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%