MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MWA - US6247581084 - Common Stock
24.25 USD
-0.46 (-1.86%)
24.25 USD
0 (0%)
MWA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making MWA a very profitable company, without any liquidiy or solvency issues. MWA has a correct valuation and a medium growth rate. These ratings would make MWA suitable for quality investing!
1. Profitability
1.1 Basic Checks
MWA had positive earnings in the past year.
MWA had a positive operating cash flow in the past year.
MWA had positive earnings in each of the past 5 years.
In the past 5 years MWA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.42%, MWA belongs to the best of the industry, outperforming 81.06% of the companies in the same industry.
The Return On Equity of MWA (19.53%) is better than 87.12% of its industry peers.
The Return On Invested Capital of MWA (12.92%) is better than 81.06% of its industry peers.
MWA had an Average Return On Invested Capital over the past 3 years of 10.70%. This is in line with the industry average of 10.21%.
The last Return On Invested Capital (12.92%) for MWA is above the 3 year average (10.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 19.53% | ||
| ROIC | 12.92% |
ROA(3y)7.73%
ROA(5y)6.59%
ROE(3y)15.28%
ROE(5y)13.49%
ROIC(3y)10.7%
ROIC(5y)9.46%
1.3 Margins
MWA's Profit Margin of 13.41% is amongst the best of the industry. MWA outperforms 82.58% of its industry peers.
MWA's Profit Margin has improved in the last couple of years.
MWA's Operating Margin of 19.13% is amongst the best of the industry. MWA outperforms 87.88% of its industry peers.
MWA's Operating Margin has improved in the last couple of years.
MWA has a better Gross Margin (36.43%) than 66.67% of its industry peers.
MWA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.13% | ||
| PM (TTM) | 13.41% | ||
| GM | 36.43% |
OM growth 3Y23.85%
OM growth 5Y7.28%
PM growth 3Y29.73%
PM growth 5Y12.42%
GM growth 3Y7.64%
GM growth 5Y1.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MWA is still creating some value.
MWA has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MWA has less shares outstanding
MWA has a better debt/assets ratio than last year.
2.2 Solvency
MWA has an Altman-Z score of 4.32. This indicates that MWA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MWA (4.32) is better than 66.67% of its industry peers.
MWA has a debt to FCF ratio of 2.63. This is a good value and a sign of high solvency as MWA would need 2.63 years to pay back of all of its debts.
MWA's Debt to FCF ratio of 2.63 is fine compared to the rest of the industry. MWA outperforms 72.73% of its industry peers.
MWA has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.46, MWA is in line with its industry, outperforming 49.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 4.32 |
ROIC/WACC1.41
WACC9.18%
2.3 Liquidity
MWA has a Current Ratio of 3.54. This indicates that MWA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MWA (3.54) is better than 85.61% of its industry peers.
A Quick Ratio of 2.41 indicates that MWA has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.41, MWA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.41 |
3. Growth
3.1 Past
MWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.05%, which is quite impressive.
The Earnings Per Share has been growing by 20.76% on average over the past years. This is a very strong growth
The Revenue has grown by 8.75% in the past year. This is quite good.
MWA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.20% yearly.
EPS 1Y (TTM)35.05%
EPS 3Y31.97%
EPS 5Y20.76%
EPS Q2Q%72.73%
Revenue 1Y (TTM)8.75%
Revenue growth 3Y4.65%
Revenue growth 5Y8.2%
Sales Q2Q%9.36%
3.2 Future
The Earnings Per Share is expected to grow by 3.79% on average over the next years.
MWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.26% yearly.
EPS Next Y7.81%
EPS Next 2Y7.47%
EPS Next 3Y3.79%
EPS Next 5YN/A
Revenue Next Year4.07%
Revenue Next 2Y3.89%
Revenue Next 3Y2.26%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.51 indicates a rather expensive valuation of MWA.
Compared to the rest of the industry, the Price/Earnings ratio of MWA indicates a somewhat cheap valuation: MWA is cheaper than 77.27% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. MWA is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.17 indicates a rather expensive valuation of MWA.
MWA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MWA is cheaper than 72.73% of the companies in the same industry.
MWA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 17.17 |
4.2 Price Multiples
MWA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MWA is cheaper than 71.21% of the companies in the same industry.
MWA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MWA is cheaper than 65.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.04 | ||
| EV/EBITDA | 12.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MWA does not grow enough to justify the current Price/Earnings ratio.
MWA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)0.89
EPS Next 2Y7.47%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.18%.
Compared to an average industry Dividend Yield of 0.85, MWA pays a bit more dividend than its industry peers.
MWA's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of MWA has a limited annual growth rate of 5.03%.
MWA has paid a dividend for at least 10 years, which is a reliable track record.
MWA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.03%
Div Incr Years10
Div Non Decr Years18
5.3 Sustainability
21.86% of the earnings are spent on dividend by MWA. This is a low number and sustainable payout ratio.
MWA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.86%
EPS Next 2Y7.47%
EPS Next 3Y3.79%
24.25
-0.46 (-1.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.49%
Inst Owner Change0%
Ins Owners0.46%
Ins Owner Change1.1%
Market Cap3.79B
Revenue(TTM)1.43B
Net Income(TTM)191.70M
Analysts74
Price Target28.22 (16.37%)
Short Float %1.89%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend0.27
Dividend Growth(5Y)5.03%
DP21.86%
Div Incr Years10
Div Non Decr Years18
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.35%
Min EPS beat(2)-0.5%
Max EPS beat(2)11.2%
EPS beat(4)3
Avg EPS beat(4)11.83%
Min EPS beat(4)-0.5%
Max EPS beat(4)28.03%
EPS beat(8)7
Avg EPS beat(8)32.59%
EPS beat(12)9
Avg EPS beat(12)28.78%
EPS beat(16)11
Avg EPS beat(16)23.31%
Revenue beat(2)2
Avg Revenue beat(2)3.27%
Min Revenue beat(2)2.47%
Max Revenue beat(2)4.06%
Revenue beat(4)4
Avg Revenue beat(4)3.18%
Min Revenue beat(4)2.38%
Max Revenue beat(4)4.06%
Revenue beat(8)8
Avg Revenue beat(8)5.51%
Revenue beat(12)10
Avg Revenue beat(12)3.99%
Revenue beat(16)13
Avg Revenue beat(16)3.86%
PT rev (1m)0%
PT rev (3m)-3.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.51 | ||
| Fwd PE | 17.17 | ||
| P/S | 2.65 | ||
| P/FCF | 22.04 | ||
| P/OCF | 17.29 | ||
| P/B | 3.86 | ||
| P/tB | 6.48 | ||
| EV/EBITDA | 12.12 |
EPS(TTM)1.31
EY5.4%
EPS(NY)1.41
Fwd EY5.82%
FCF(TTM)1.1
FCFY4.54%
OCF(TTM)1.4
OCFY5.78%
SpS9.14
BVpS6.28
TBVpS3.74
PEG (NY)2.37
PEG (5Y)0.89
Graham Number13.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 19.53% | ||
| ROCE | 17.66% | ||
| ROIC | 12.92% | ||
| ROICexc | 17.91% | ||
| ROICexgc | 27.77% | ||
| OM | 19.13% | ||
| PM (TTM) | 13.41% | ||
| GM | 36.43% | ||
| FCFM | 12.03% |
ROA(3y)7.73%
ROA(5y)6.59%
ROE(3y)15.28%
ROE(5y)13.49%
ROIC(3y)10.7%
ROIC(5y)9.46%
ROICexc(3y)13.84%
ROICexc(5y)11.87%
ROICexgc(3y)21.76%
ROICexgc(5y)19.51%
ROCE(3y)14.63%
ROCE(5y)12.93%
ROICexgc growth 3Y25.29%
ROICexgc growth 5Y8.84%
ROICexc growth 3Y29.36%
ROICexc growth 5Y14.23%
OM growth 3Y23.85%
OM growth 5Y7.28%
PM growth 3Y29.73%
PM growth 5Y12.42%
GM growth 3Y7.64%
GM growth 5Y1.36%
F-Score8
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.63 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 100.85% | ||
| Cap/Sales | 3.31% | ||
| Interest Coverage | 49.73 | ||
| Cash Conversion | 68.45% | ||
| Profit Quality | 89.72% | ||
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.41 | ||
| Altman-Z | 4.32 |
F-Score8
WACC9.18%
ROIC/WACC1.41
Cap/Depr(3y)82.87%
Cap/Depr(5y)88.85%
Cap/Sales(3y)3.55%
Cap/Sales(5y)4.13%
Profit Quality(3y)108.89%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.05%
EPS 3Y31.97%
EPS 5Y20.76%
EPS Q2Q%72.73%
EPS Next Y7.81%
EPS Next 2Y7.47%
EPS Next 3Y3.79%
EPS Next 5YN/A
Revenue 1Y (TTM)8.75%
Revenue growth 3Y4.65%
Revenue growth 5Y8.2%
Sales Q2Q%9.36%
Revenue Next Year4.07%
Revenue Next 2Y3.89%
Revenue Next 3Y2.26%
Revenue Next 5YN/A
EBIT growth 1Y27.92%
EBIT growth 3Y29.62%
EBIT growth 5Y16.07%
EBIT Next Year27.9%
EBIT Next 3Y10.07%
EBIT Next 5YN/A
FCF growth 1Y-10.14%
FCF growth 3YN/A
FCF growth 5Y18.83%
OCF growth 1Y-8.17%
OCF growth 3Y61.25%
OCF growth 5Y9.34%
MUELLER WATER PRODUCTS INC-A / MWA FAQ
What is the fundamental rating for MWA stock?
ChartMill assigns a fundamental rating of 7 / 10 to MWA.
Can you provide the valuation status for MUELLER WATER PRODUCTS INC-A?
ChartMill assigns a valuation rating of 5 / 10 to MUELLER WATER PRODUCTS INC-A (MWA). This can be considered as Fairly Valued.
What is the profitability of MWA stock?
MUELLER WATER PRODUCTS INC-A (MWA) has a profitability rating of 9 / 10.
What are the PE and PB ratios of MUELLER WATER PRODUCTS INC-A (MWA) stock?
The Price/Earnings (PE) ratio for MUELLER WATER PRODUCTS INC-A (MWA) is 18.51 and the Price/Book (PB) ratio is 3.86.
Can you provide the expected EPS growth for MWA stock?
The Earnings per Share (EPS) of MUELLER WATER PRODUCTS INC-A (MWA) is expected to grow by 7.81% in the next year.