Mueller Water Products, Inc.
Mueller Water Products, Inc. Fundamental Analysis
Mueller Water Products, Inc. (MWA) shows moderate financial fundamentals with a PE ratio of 23.18, profit margin of 13.83%, and ROE of 21.00%. The company generates $1.4B in annual revenue with moderate year-over-year growth of 8.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MWA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMWA demonstrates superior asset utilization.
Valuation Score
ModerateMWA shows balanced valuation metrics.
Growth Score
ExcellentMWA delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMWA maintains a strong and stable balance sheet.
Profitability Score
ModerateMWA maintains healthy but balanced margins.
Key Financial Metrics
Is MWA Expensive or Cheap?
P/E Ratio
MWA trades at 23.18 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MWA's PEG of 5.75 indicates potential overvaluation.
Price to Book
The market values Mueller Water Products, Inc. at 4.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.17 times EBITDA. This signals the market has high growth expectations.
How Well Does MWA Make Money?
Net Profit Margin
For every $100 in sales, Mueller Water Products, Inc. keeps $13.83 as profit after all expenses.
Operating Margin
Core operations generate 18.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.00 in profit for every $100 of shareholder equity.
ROA
Mueller Water Products, Inc. generates $10.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mueller Water Products, Inc. produces operating cash flow of $226.52M, showing steady but balanced cash generation.
Free Cash Flow
Mueller Water Products, Inc. generates strong free cash flow of $173.89M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.11 in free cash annually.
FCF Yield
MWA converts 3.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How MWA Stacks Against Its Sector Peers
| Metric | MWA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.18 | 26.49 | Better (Cheaper) |
| ROE | 21.00% | 1307.00% | Weak |
| Net Margin | 13.83% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.44 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 4.02 | 10.48 | Strong Liquidity |
| ROA | 10.81% | -1549792.00% (disorted) | Strong |
MWA 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 Water Products, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.62%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
168.63%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
57.71%
Industry Style: Cyclical, Value, Infrastructure
High Growth