MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
NYSE:MWA - New York Stock Exchange, Inc. - US6247581084 - Common Stock - Currency: USD
MWA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. MWA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MWA is not valued too expensively and it also shows a decent growth rate. This makes MWA very considerable for quality investing!
1. Profitability
1.1 Basic Checks
MWA had positive earnings in the past year.
In the past year MWA had a positive cash flow from operations.
Each year in the past 5 years MWA has been profitable.
MWA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MWA (8.61%) is better than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 16.47%, MWA is in the better half of the industry, outperforming 74.22% of the companies in the same industry.
MWA has a better Return On Invested Capital (12.61%) than 78.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MWA is in line with the industry average of 10.72%.
The 3 year average ROIC (9.01%) for MWA is below the current ROIC(12.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 16.47% | ||
| ROIC | 12.61% |
ROA(3y)5.96%
ROA(5y)5.54%
ROE(3y)12.59%
ROE(5y)11.83%
ROIC(3y)9.01%
ROIC(5y)8.58%
1.3 Margins
With a decent Profit Margin value of 10.48%, MWA is doing good in the industry, outperforming 69.53% of the companies in the same industry.
In the last couple of years the Profit Margin of MWA has grown nicely.
MWA has a better Operating Margin (17.65%) than 82.03% of its industry peers.
MWA's Operating Margin has improved in the last couple of years.
MWA has a better Gross Margin (34.70%) than 60.94% of its industry peers.
In the last couple of years the Gross Margin of MWA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.65% | ||
| PM (TTM) | 10.48% | ||
| GM | 34.7% |
OM growth 3Y8.95%
OM growth 5Y2.64%
PM growth 3Y11.63%
PM growth 5Y5.99%
GM growth 3Y2.66%
GM growth 5Y1.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MWA is creating some value.
Compared to 1 year ago, MWA has more shares outstanding
MWA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MWA has been reduced compared to a year ago.
2.2 Solvency
MWA has an Altman-Z score of 4.38. This indicates that MWA is financially healthy and has little risk of bankruptcy at the moment.
MWA has a better Altman-Z score (4.38) than 71.09% of its industry peers.
The Debt to FCF ratio of MWA is 2.34, which is a good value as it means it would take MWA, 2.34 years of fcf income to pay off all of its debts.
MWA's Debt to FCF ratio of 2.34 is fine compared to the rest of the industry. MWA outperforms 74.22% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that MWA is somewhat dependend on debt financing.
MWA's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. MWA outperforms 42.97% of its industry peers.
Even though the debt/equity ratio score it not favorable for MWA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.34 | ||
| Altman-Z | 4.38 |
ROIC/WACC1.3
WACC9.68%
2.3 Liquidity
A Current Ratio of 3.79 indicates that MWA has no problem at all paying its short term obligations.
The Current ratio of MWA (3.79) is better than 85.94% of its industry peers.
A Quick Ratio of 2.49 indicates that MWA has no problem at all paying its short term obligations.
MWA has a better Quick ratio (2.49) than 82.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.79 | ||
| Quick Ratio | 2.49 |
3. Growth
3.1 Past
MWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.25%, which is quite impressive.
Measured over the past years, MWA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.36% on average per year.
Looking at the last year, MWA shows a quite strong growth in Revenue. The Revenue has grown by 10.96% in the last year.
The Revenue has been growing slightly by 6.31% on average over the past years.
EPS 1Y (TTM)41.25%
EPS 3Y20.82%
EPS 5Y9.36%
EPS Q2Q%13.33%
Revenue 1Y (TTM)10.96%
Revenue growth 3Y5.77%
Revenue growth 5Y6.31%
Sales Q2Q%3.08%
3.2 Future
The Earnings Per Share is expected to grow by 12.98% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.37% on average over the next years.
EPS Next Y28.59%
EPS Next 2Y18.63%
EPS Next 3Y12.98%
EPS Next 5YN/A
Revenue Next Year8.31%
Revenue Next 2Y6.66%
Revenue Next 3Y5.37%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 20.96, which indicates a rather expensive current valuation of MWA.
Based on the Price/Earnings ratio, MWA is valued a bit cheaper than the industry average as 61.72% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MWA to the average of the S&P500 Index (26.69), we can say MWA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.35, the valuation of MWA can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MWA indicates a somewhat cheap valuation: MWA is cheaper than 60.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.29, MWA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 17.35 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MWA.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MWA indicates a somewhat cheap valuation: MWA is cheaper than 65.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.29 | ||
| EV/EBITDA | 13.05 |
4.3 Compensation for Growth
MWA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MWA has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MWA's earnings are expected to grow with 12.98% in the coming years.
PEG (NY)0.73
PEG (5Y)2.24
EPS Next 2Y18.63%
EPS Next 3Y12.98%
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.15%.
Compared to an average industry Dividend Yield of 1.94, MWA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, MWA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of MWA has a limited annual growth rate of 4.69%.
MWA has been paying a dividend for at least 10 years, so it has a reliable track record.
MWA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.69%
Div Incr Years10
Div Non Decr Years18
5.3 Sustainability
28.42% of the earnings are spent on dividend by MWA. This is a low number and sustainable payout ratio.
The dividend of MWA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.42%
EPS Next 2Y18.63%
EPS Next 3Y12.98%
23.68
-0.38 (-1.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.59%
Inst Owner Change12%
Ins Owners0.83%
Ins Owner Change-1.59%
Market Cap3.71B
Analysts74
Price Target28.73 (21.33%)
Short Float %3.69%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend0.26
Dividend Growth(5Y)4.69%
DP28.42%
Div Incr Years10
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.31%
Min EPS beat(2)8.59%
Max EPS beat(2)28.03%
EPS beat(4)4
Avg EPS beat(4)20.22%
Min EPS beat(4)1.31%
Max EPS beat(4)42.93%
EPS beat(8)7
Avg EPS beat(8)34.42%
EPS beat(12)8
Avg EPS beat(12)24.99%
EPS beat(16)11
Avg EPS beat(16)21.06%
Revenue beat(2)2
Avg Revenue beat(2)3.1%
Min Revenue beat(2)2.38%
Max Revenue beat(2)3.82%
Revenue beat(4)4
Avg Revenue beat(4)4.88%
Min Revenue beat(4)2.38%
Max Revenue beat(4)7.15%
Revenue beat(8)7
Avg Revenue beat(8)4.29%
Revenue beat(12)9
Avg Revenue beat(12)3.63%
Revenue beat(16)12
Avg Revenue beat(16)4.27%
PT rev (1m)-1.74%
PT rev (3m)-3.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.61%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 17.35 | ||
| P/S | 2.7 | ||
| P/FCF | 19.29 | ||
| P/OCF | 15.14 | ||
| P/B | 4.25 | ||
| P/tB | 7.63 | ||
| EV/EBITDA | 13.05 |
EPS(TTM)1.13
EY4.77%
EPS(NY)1.37
Fwd EY5.77%
FCF(TTM)1.23
FCFY5.18%
OCF(TTM)1.56
OCFY6.6%
SpS8.77
BVpS5.58
TBVpS3.1
PEG (NY)0.73
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 16.47% | ||
| ROCE | 16.89% | ||
| ROIC | 12.61% | ||
| ROICexc | 16.37% | ||
| ROICexgc | 25.19% | ||
| OM | 17.65% | ||
| PM (TTM) | 10.48% | ||
| GM | 34.7% | ||
| FCFM | 14% |
ROA(3y)5.96%
ROA(5y)5.54%
ROE(3y)12.59%
ROE(5y)11.83%
ROIC(3y)9.01%
ROIC(5y)8.58%
ROICexc(3y)10.84%
ROICexc(5y)10.33%
ROICexgc(3y)17.57%
ROICexgc(5y)17.96%
ROCE(3y)12.07%
ROCE(5y)11.49%
ROICexcg growth 3Y8.33%
ROICexcg growth 5Y0.66%
ROICexc growth 3Y15.33%
ROICexc growth 5Y7.3%
OM growth 3Y8.95%
OM growth 5Y2.64%
PM growth 3Y11.63%
PM growth 5Y5.99%
GM growth 3Y2.66%
GM growth 5Y1.04%
F-Score8
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.34 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 94.61% | ||
| Cap/Sales | 3.84% | ||
| Interest Coverage | 34.63 | ||
| Cash Conversion | 82.19% | ||
| Profit Quality | 133.63% | ||
| Current Ratio | 3.79 | ||
| Quick Ratio | 2.49 | ||
| Altman-Z | 4.38 |
F-Score8
WACC9.68%
ROIC/WACC1.3
Cap/Depr(3y)79.39%
Cap/Depr(5y)92.1%
Cap/Sales(3y)3.91%
Cap/Sales(5y)4.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)41.25%
EPS 3Y20.82%
EPS 5Y9.36%
EPS Q2Q%13.33%
EPS Next Y28.59%
EPS Next 2Y18.63%
EPS Next 3Y12.98%
EPS Next 5YN/A
Revenue 1Y (TTM)10.96%
Revenue growth 3Y5.77%
Revenue growth 5Y6.31%
Sales Q2Q%3.08%
Revenue Next Year8.31%
Revenue Next 2Y6.66%
Revenue Next 3Y5.37%
Revenue Next 5YN/A
EBIT growth 1Y42.76%
EBIT growth 3Y15.24%
EBIT growth 5Y9.12%
EBIT Next Year51.65%
EBIT Next 3Y19.48%
EBIT Next 5YN/A
FCF growth 1Y1066.33%
FCF growth 3Y26.75%
FCF growth 5Y100.55%
OCF growth 1Y736.18%
OCF growth 3Y15.08%
OCF growth 5Y20.89%