Mueller Industries, Inc. Fundamental Analysis (NYSE: MLI)
Mueller Industries, Inc. Fundamental Analysis (NYSE: MLI)
Mueller Industries, Inc. (NYSE: MLI) shows strong financial fundamentals with a PE ratio of 17.07, profit margin of 18.25%, and ROE of 27.33%. The company generates $4.7B in annual revenue with strong year-over-year growth of 10.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.1/100 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
ExcellentMLI trades at attractive valuation levels.
Growth Score
ExcellentMLI delivers strong and consistent growth momentum.
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 17.07 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MLI's PEG of 0.78 indicates potential undervaluation.
Price to Book
The market values Mueller Industries, Inc. at 4.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.46 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 $18.25 as profit after all expenses.
Operating Margin
Core operations generate 21.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.33 in profit for every $100 of shareholder equity.
ROA
Mueller Industries, Inc. generates $19.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mueller Industries, Inc. generates limited operating cash flow of $458.87M, signaling weaker underlying cash strength.
Free Cash Flow
Mueller Industries, Inc. produces free cash flow of $380.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.72 in free cash annually.
FCF Yield
MLI converts 2.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How MLI Stacks Against Its Sector Peers
| Metric | MLI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.07 | 30.77 | Better (Cheaper) |
| ROE | 27.33% | 1146.00% | Weak |
| Net Margin | 18.25% | -20835.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 4.78 | 24.28 | Strong Liquidity |
| ROA | 19.98% | -1313619.00% (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
78.29%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
461.26%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
215.39%
Industry Style: Cyclical, Value, Infrastructure
High Growth