MUELLER WATER PRODUCTS INC-A (MWA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MWA - US6247581084 - Common Stock
24.99 USD
+0.23 (+0.93%)
24.99 USD
0 (0%)
MWA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 130 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
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.
Each year in the past 5 years MWA had a positive operating cash flow.
1.2 Ratios
MWA's Return On Assets of 10.42% is amongst the best of the industry. MWA outperforms 80.77% of its industry peers.
MWA has a better Return On Equity (19.53%) than 86.15% of its industry peers.
MWA has a better Return On Invested Capital (12.92%) than 79.23% 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 10.46%.
The 3 year average ROIC (10.70%) for MWA is below the current ROIC(12.92%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 13.41%, MWA belongs to the top of the industry, outperforming 82.31% of the companies in the same industry.
In the last couple of years the Profit Margin of MWA has grown nicely.
MWA's Operating Margin of 19.13% is amongst the best of the industry. MWA outperforms 87.69% of its industry peers.
MWA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 36.43%, MWA is in the better half of the industry, outperforming 66.15% of the companies in the same industry.
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 | 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.
The number of shares outstanding for MWA remains at a similar level compared to 1 year ago.
The number of shares outstanding for MWA has been reduced compared to 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 4.33. This indicates that MWA is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.33, MWA is doing good in the industry, outperforming 68.46% of the companies in the same industry.
The Debt to FCF ratio of MWA is 2.63, which is a good value as it means it would take MWA, 2.63 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MWA (2.63) is better than 72.31% 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.
MWA has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: MWA outperforms 47.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 4.33 |
ROIC/WACC1.41
WACC9.15%
2.3 Liquidity
A Current Ratio of 3.54 indicates that MWA has no problem at all paying its short term obligations.
MWA's Current ratio of 3.54 is amongst the best of the industry. MWA outperforms 84.62% of its industry peers.
MWA has a Quick Ratio of 2.41. This indicates that MWA is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of MWA (2.41) is better than 82.31% of its industry peers.
| 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.
Measured over the past years, MWA shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.76% on average per year.
MWA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.75%.
The Revenue has been growing by 8.20% on average over the past years. This is quite good.
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
MWA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.79% yearly.
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
Based on the Price/Earnings ratio of 19.08, the valuation of MWA can be described as rather expensive.
MWA's Price/Earnings ratio is a bit cheaper when compared to the industry. MWA is cheaper than 75.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of MWA to the average of the S&P500 Index (26.54), we can say MWA is valued slightly cheaper.
MWA is valuated rather expensively with a Price/Forward Earnings ratio of 17.69.
Based on the Price/Forward Earnings ratio, MWA is valued a bit cheaper than the industry average as 68.46% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, MWA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 17.69 |
4.2 Price Multiples
69.23% of the companies in the same industry are more expensive than MWA, based on the Enterprise Value to EBITDA ratio.
MWA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MWA is cheaper than 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.72 | ||
| EV/EBITDA | 12.15 |
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.
The excellent profitability rating of MWA may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)0.92
EPS Next 2Y7.47%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
MWA has a Yearly Dividend Yield of 1.13%.
MWA's Dividend Yield is a higher than the industry average which is at 1.79.
With a Dividend Yield of 1.13, MWA pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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 their dividend for at least 10 years, which is a reliable track record.
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%
24.99
+0.23 (+0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.11%
Inst Owner Change-2.71%
Ins Owners0.34%
Ins Owner Change1.92%
Market Cap3.91B
Revenue(TTM)1.43B
Net Income(TTM)191.70M
Analysts74
Price Target28.22 (12.93%)
Short Float %2.41%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend0.27
Dividend Growth(5Y)5.03%
DP21.86%
Div Incr Years10
Div Non Decr Years18
Ex-Date
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)28.73%
EPS beat(16)11
Avg EPS beat(16)23.27%
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)-3.49%
PT rev (3m)-3.49%
EPS NQ rev (1m)-3.37%
EPS NQ rev (3m)-2.47%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)-0.54%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.08 | ||
| Fwd PE | 17.69 | ||
| P/S | 2.73 | ||
| P/FCF | 22.72 | ||
| P/OCF | 17.82 | ||
| P/B | 3.98 | ||
| P/tB | 6.68 | ||
| EV/EBITDA | 12.15 |
EPS(TTM)1.31
EY5.24%
EPS(NY)1.41
Fwd EY5.65%
FCF(TTM)1.1
FCFY4.4%
OCF(TTM)1.4
OCFY5.61%
SpS9.14
BVpS6.28
TBVpS3.74
PEG (NY)2.44
PEG (5Y)0.92
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 | 4.33 |
F-Score8
WACC9.15%
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.
What is the valuation status of MUELLER WATER PRODUCTS INC-A (MWA) stock?
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 8 / 10.
What is the valuation of MUELLER WATER PRODUCTS INC-A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MUELLER WATER PRODUCTS INC-A (MWA) is 19.08 and the Price/Book (PB) ratio is 3.98.
What is the earnings growth outlook for MUELLER WATER PRODUCTS INC-A?
The Earnings per Share (EPS) of MUELLER WATER PRODUCTS INC-A (MWA) is expected to grow by 7.81% in the next year.