MUELLER INDUSTRIES INC (MLI)
US6247561029 - Common Stock
We assign a fundamental rating of 7 out of 10 to MLI. MLI was compared to 132 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 valuation in line with the averages, but it does not seem to be growing.
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.
MLI had positive earnings in each of the past 5 years.
Each year in the past 5 years MLI had a positive operating cash flow.
1.2 Ratios
MLI has a better Return On Assets (19.63%) than 98.46% of its industry peers.
MLI's Return On Equity of 23.43% is amongst the best of the industry. MLI outperforms 85.38% of its industry peers.
The Return On Invested Capital of MLI (20.25%) is better than 93.08% of its industry peers.
MLI had an Average Return On Invested Capital over the past 3 years of 29.89%. This is significantly above the industry average of 10.80%.
The 3 year average ROIC (29.89%) for MLI is well above the current ROIC(20.25%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.63% | ||
| ROE | 23.43% | ||
| ROIC | 20.25% |
ROA(3y)26.1%
ROA(5y)18.96%
ROE(3y)33.63%
ROE(5y)26.91%
ROIC(3y)29.89%
ROIC(5y)23.22%
1.3 Margins
Looking at the Profit Margin, with a value of 17.22%, MLI belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
MLI's Profit Margin has improved in the last couple of years.
MLI's Operating Margin of 20.96% is amongst the best of the industry. MLI outperforms 91.54% of its industry peers.
MLI's Operating Margin has improved in the last couple of years.
MLI's Gross Margin of 28.35% is in line compared to the rest of the industry. MLI outperforms 49.23% of its industry peers.
In the last couple of years the Gross Margin of MLI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.96% | ||
| PM (TTM) | 17.22% | ||
| GM | 28.35% |
OM growth 3Y31.53%
OM growth 5Y26.31%
PM growth 3Y44.7%
PM growth 5Y33.44%
GM growth 3Y17.01%
GM growth 5Y15.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MLI is creating value.
The number of shares outstanding for MLI remains at a similar level compared to 1 year ago.
The number of shares outstanding for MLI has been increased compared to 5 years ago.
MLI has a better debt/assets ratio than last year.
2.2 Solvency
MLI has an Altman-Z score of 12.45. This indicates that MLI is financially healthy and has little risk of bankruptcy at the moment.
MLI's Altman-Z score of 12.45 is amongst the best of the industry. MLI outperforms 93.85% of its industry peers.
MLI has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.00, MLI belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that MLI is not too dependend on debt financing.
MLI's Debt to Equity ratio of 0.00 is amongst the best of the industry. MLI outperforms 85.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.45 |
ROIC/WACC2.23
WACC9.1%
2.3 Liquidity
A Current Ratio of 6.05 indicates that MLI has no problem at all paying its short term obligations.
The Current ratio of MLI (6.05) is better than 93.08% of its industry peers.
A Quick Ratio of 5.06 indicates that MLI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.06, MLI belongs to the best of the industry, outperforming 93.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.05 | ||
| Quick Ratio | 5.06 |
3. Growth
3.1 Past
MLI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.44%.
The Earnings Per Share has been growing by 42.27% on average over the past years. This is a very strong growth
MLI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.35%.
Measured over the past years, MLI shows a small growth in Revenue. The Revenue has been growing by 6.40% on average per year.
EPS 1Y (TTM)-16.44%
EPS 3Y62.33%
EPS 5Y42.27%
EPS growth Q2Q-21.29%
Revenue 1Y (TTM)-16.35%
Revenue growth 3Y12.57%
Revenue growth 5Y6.4%
Revenue growth Q2Q-12.51%
3.2 Future
MLI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.14% yearly.
MLI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.13% yearly.
EPS Next Y-21.43%
EPS Next 2Y-10.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.04%
Revenue Next 2Y1.13%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.42, MLI is valued correctly.
Based on the Price/Earnings ratio, MLI is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
MLI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.15.
Based on the Price/Forward Earnings ratio of 15.39, the valuation of MLI can be described as correct.
MLI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MLI is cheaper than 67.69% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MLI to the average of the S&P500 Index (20.20), we can say MLI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 15.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MLI indicates a rather cheap valuation: MLI is cheaper than 88.46% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MLI indicates a rather cheap valuation: MLI is cheaper than 94.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.72 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
MLI has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MLI's earnings are expected to decrease with -10.14% in the coming years.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-10.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MLI has a Yearly Dividend Yield of 1.36%.
Compared to an average industry Dividend Yield of 1.66, MLI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.36, MLI pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of MLI is nicely growing with an annual growth rate of 24.21%!
MLI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)24.21%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MLI pays out 12.75% of its income as dividend. This is a sustainable payout ratio.
DP12.75%
EPS Next 2Y-10.14%
EPS Next 3YN/A
MUELLER INDUSTRIES INC
NYSE:MLI (5/17/2024, 7:13:31 PM)
After market: 57.51 0 (0%)57.51
-0.76 (-1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 15.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.63% | ||
| ROE | 23.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.96% | ||
| PM (TTM) | 17.22% | ||
| GM | 28.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.05 | ||
| Quick Ratio | 5.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-16.44%
EPS 3Y62.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y-21.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.35%
Revenue growth 3Y12.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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