Mueller Industries, Inc.
Mueller Industries, Inc. Fundamental Analysis
Mueller Industries, Inc. (MLI) shows strong financial fundamentals with a PE ratio of 15.40, profit margin of 18.31%, and ROE of 27.46%. The company generates $4.3B in annual revenue with strong year-over-year growth of 10.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MLI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMLI demonstrates superior asset utilization.
Valuation Score
ModerateMLI shows balanced valuation metrics.
Growth Score
ModerateMLI shows steady but slowing expansion.
Financial Health Score
ExcellentMLI maintains a strong and stable balance sheet.
Profitability Score
ExcellentMLI achieves industry-leading margins.
Key Financial Metrics
Is MLI Expensive or Cheap?
P/E Ratio
MLI trades at 15.40 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MLI's PEG of 5.83 indicates potential overvaluation.
Price to Book
The market values Mueller Industries, Inc. at 4.72 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.25 times EBITDA. This signals the market has high growth expectations.
How Well Does MLI Make Money?
Net Profit Margin
For every $100 in sales, Mueller Industries, Inc. keeps $18.31 as profit after all expenses.
Operating Margin
Core operations generate 21.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.46 in profit for every $100 of shareholder equity.
ROA
Mueller Industries, Inc. generates $25.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mueller Industries, Inc. produces operating cash flow of $768.60M, showing steady but balanced cash generation.
Free Cash Flow
Mueller Industries, Inc. generates strong free cash flow of $698.59M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.29 in free cash annually.
FCF Yield
MLI converts 5.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.25
vs 25 benchmark
ROCE
Return on capital employed
0.34
vs 25 benchmark
How MLI Stacks Against Its Sector Peers
| Metric | MLI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.40 | 24.98 | Better (Cheaper) |
| ROE | 27.46% | 1284.00% | Weak |
| Net Margin | 18.31% | -45683.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 5.92 | 10.67 | Strong Liquidity |
| ROA | 25.35% | -1542352.00% (disorted) | Strong |
MLI outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mueller Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.38%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
500.31%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
222.75%
Industry Style: Cyclical, Value, Infrastructure
High Growth