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MWA: Leadership Transition And Buybacks Will Support Dividend Strength Ahead

Aging US Municipal Water Systems Will Stimulate Smart Water Demand

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MWA
AnalystConsensusTarget
Not Invested
Published 04 Sep 2024

Update shared on 11 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
8.5%
7D
0.2%

Analysts have modestly reaffirmed their conviction in Mueller Water Products, holding their price target essentially unchanged at approximately $27.67 per share. They continue to expect stable revenue growth, resilient profit margins, and a broadly consistent future valuation multiple.

What's in the News

  • The board has appointed President and COO Paul McAndrew as the next Chief Executive Officer, effective after the February 9, 2026 annual shareholders meeting. Current CEO Martie Edmunds Zakas will transition to Senior Advisor through year end 2026 (company announcement).
  • The company has issued 2026 guidance, projecting consolidated net sales of $1.45 billion to $1.47 billion, implying 1.4% to 2.8% growth year over year and a return to more typical seasonal patterns with peak sales in the third quarter (company guidance).
  • The board has approved an approximately 4.5% increase in the quarterly dividend to $0.070 per share, payable around November 20, 2025 to shareholders of record as of November 10, 2025 (dividend declaration).
  • The ongoing share repurchase program advanced in the quarter ended September 30, 2025, with 1,244 shares bought back for $0.03 million. This brings total repurchases under the April 28, 2015 authorization to 14.4 million shares, or about 9.07% of shares outstanding, for $184.52 million (buyback update).

Valuation Changes

  • Fair Value: Unchanged at approximately $27.67 per share, indicating no material revision to intrinsic value estimates.
  • Discount Rate: Fallen slightly from about 8.62% to 8.61%, reflecting a marginally lower required return in the valuation model.
  • Revenue Growth: Essentially unchanged at around 1.81% annually, signaling a stable outlook for top line expansion.
  • Net Profit Margin: Stable at roughly 16.84%, suggesting no meaningful change in long term profitability expectations.
  • Future P/E: Edged down slightly from about 21.63x to 21.62x, implying a nearly unchanged forward valuation multiple.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.