MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
NYSE:MWA - US6247581084 - Common Stock
26.36 USD
-0.57 (-2.12%)
26.36 USD
0 (0%)
Overall MWA gets a fundamental rating of 7 out of 10. We evaluated MWA against 128 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, MWA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year MWA was profitable.
MWA had a positive operating cash flow in the past year.
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
MWA's Return On Assets of 8.62% is fine compared to the rest of the industry. MWA outperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 16.05%, MWA is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
The Return On Invested Capital of MWA (12.41%) is better than 78.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MWA is in line with the industry average of 9.99%.
The 3 year average ROIC (9.01%) for MWA is below the current ROIC(12.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 16.05% | ||
| ROIC | 12.41% |
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 10.67%, MWA is doing good in the industry, outperforming 74.22% 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 (17.69%) than 83.59% of its industry peers.
MWA's Operating Margin has improved in the last couple of years.
MWA's Gross Margin of 35.14% is fine compared to the rest of the industry. MWA outperforms 63.28% 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 | 17.69% | ||
| PM (TTM) | 10.67% | ||
| GM | 35.14% |
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.
The number of shares outstanding for MWA has been increased compared to 1 year ago.
The number of shares outstanding for MWA has been reduced compared to 5 years ago.
Compared to 1 year ago, MWA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.66 indicates that MWA is not in any danger for bankruptcy at the moment.
MWA's Altman-Z score of 4.66 is fine compared to the rest of the industry. MWA outperforms 76.56% of its industry peers.
MWA has a debt to FCF ratio of 2.61. This is a good value and a sign of high solvency as MWA would need 2.61 years to pay back of all of its debts.
The Debt to FCF ratio of MWA (2.61) is better than 70.31% of its industry peers.
MWA has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
MWA's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. MWA outperforms 45.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 4.66 |
ROIC/WACC1.25
WACC9.95%
2.3 Liquidity
A Current Ratio of 3.86 indicates that MWA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.86, MWA belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
MWA has a Quick Ratio of 2.56. This indicates that MWA is financially healthy and has no problem in meeting its short term obligations.
MWA has a better Quick ratio (2.56) than 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.86 | ||
| Quick Ratio | 2.56 |
3. Growth
3.1 Past
MWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.34%, which is quite impressive.
The Earnings Per Share has been growing by 9.36% on average over the past years. This is quite good.
MWA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.19%.
The Revenue has been growing slightly by 6.31% on average over the past years.
EPS 1Y (TTM)22.34%
EPS 3Y20.82%
EPS 5Y9.36%
EPS Q2Q%6.25%
Revenue 1Y (TTM)10.19%
Revenue growth 3Y5.77%
Revenue growth 5Y6.31%
Sales Q2Q%6.62%
3.2 Future
The Earnings Per Share is expected to grow by 15.68% on average over the next years. This is quite good.
Based on estimates for the next years, MWA will show a small growth in Revenue. The Revenue will grow by 5.88% on average per year.
EPS Next Y31.2%
EPS Next 2Y20.23%
EPS Next 3Y15.68%
EPS Next 5YN/A
Revenue Next Year9.38%
Revenue Next 2Y6.91%
Revenue Next 3Y5.88%
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 accelerating.
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
With a Price/Earnings ratio of 22.92, MWA is valued on the expensive side.
MWA's Price/Earnings is on the same level as the industry average.
MWA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
A Price/Forward Earnings ratio of 18.80 indicates a rather expensive valuation of MWA.
61.72% of the companies in the same industry are more expensive than MWA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, MWA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 18.8 |
4.2 Price Multiples
MWA's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as MWA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.83 | ||
| EV/EBITDA | 14.08 |
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.
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 15.68% in the coming years.
PEG (NY)0.73
PEG (5Y)2.45
EPS Next 2Y20.23%
EPS Next 3Y15.68%
5. Dividend
5.1 Amount
With a yearly dividend of 1.00%, MWA is not a good candidate for dividend investing.
MWA's Dividend Yield is a higher than the industry average which is at 1.78.
With a Dividend Yield of 1.00, MWA pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.69%
Div Incr Years10
Div Non Decr Years18
5.3 Sustainability
MWA pays out 27.77% of its income as dividend. This is a sustainable payout ratio.
The dividend of MWA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.77%
EPS Next 2Y20.23%
EPS Next 3Y15.68%
26.36
-0.57 (-2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners105.98%
Inst Owner Change-3.73%
Ins Owners0.83%
Ins Owner Change-4.16%
Market Cap4.12B
Analysts74
Price Target29.24 (10.93%)
Short Float %2.14%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend0.26
Dividend Growth(5Y)4.69%
DP27.77%
Div Incr Years10
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.05%
Min EPS beat(2)-0.5%
Max EPS beat(2)8.59%
EPS beat(4)3
Avg EPS beat(4)9.36%
Min EPS beat(4)-0.5%
Max EPS beat(4)28.03%
EPS beat(8)7
Avg EPS beat(8)35.64%
EPS beat(12)8
Avg EPS beat(12)25.31%
EPS beat(16)10
Avg EPS beat(16)20.28%
Revenue beat(2)2
Avg Revenue beat(2)2.43%
Min Revenue beat(2)2.38%
Max Revenue beat(2)2.47%
Revenue beat(4)4
Avg Revenue beat(4)3.71%
Min Revenue beat(4)2.38%
Max Revenue beat(4)6.15%
Revenue beat(8)8
Avg Revenue beat(8)5.61%
Revenue beat(12)10
Avg Revenue beat(12)3.85%
Revenue beat(16)12
Avg Revenue beat(16)3.53%
PT rev (1m)1.78%
PT rev (3m)0%
EPS NQ rev (1m)6.52%
EPS NQ rev (3m)10.36%
EPS NY rev (1m)2.02%
EPS NY rev (3m)1.89%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.92 | ||
| Fwd PE | 18.8 | ||
| P/S | 2.95 | ||
| P/FCF | 23.83 | ||
| P/OCF | 18.3 | ||
| P/B | 4.43 | ||
| P/tB | 7.73 | ||
| EV/EBITDA | 14.08 |
EPS(TTM)1.15
EY4.36%
EPS(NY)1.4
Fwd EY5.32%
FCF(TTM)1.11
FCFY4.2%
OCF(TTM)1.44
OCFY5.46%
SpS8.94
BVpS5.94
TBVpS3.41
PEG (NY)0.73
PEG (5Y)2.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 16.05% | ||
| ROCE | 16.62% | ||
| ROIC | 12.41% | ||
| ROICexc | 16.55% | ||
| ROICexgc | 25.65% | ||
| OM | 17.69% | ||
| PM (TTM) | 10.67% | ||
| GM | 35.14% | ||
| FCFM | 12.38% |
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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.61 | ||
| Debt/EBITDA | 1.51 | ||
| Cap/Depr | 102.15% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 41.2 | ||
| Cash Conversion | 75.46% | ||
| Profit Quality | 115.96% | ||
| Current Ratio | 3.86 | ||
| Quick Ratio | 2.56 | ||
| Altman-Z | 4.66 |
F-Score8
WACC9.95%
ROIC/WACC1.25
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)22.34%
EPS 3Y20.82%
EPS 5Y9.36%
EPS Q2Q%6.25%
EPS Next Y31.2%
EPS Next 2Y20.23%
EPS Next 3Y15.68%
EPS Next 5YN/A
Revenue 1Y (TTM)10.19%
Revenue growth 3Y5.77%
Revenue growth 5Y6.31%
Sales Q2Q%6.62%
Revenue Next Year9.38%
Revenue Next 2Y6.91%
Revenue Next 3Y5.88%
Revenue Next 5YN/A
EBIT growth 1Y23.48%
EBIT growth 3Y15.24%
EBIT growth 5Y9.12%
EBIT Next Year51.47%
EBIT Next 3Y19.48%
EBIT Next 5YN/A
FCF growth 1Y410.03%
FCF growth 3Y26.75%
FCF growth 5Y100.55%
OCF growth 1Y167.02%
OCF growth 3Y15.08%
OCF growth 5Y20.89%