Mueller Industries (MLI): Assessing Valuation After Strong Gains in Sales and Net Income

Mueller Industries (MLI) just turned in a solid earnings report, showing both sales and net income moved higher for the third quarter and the year so far compared to last year. Investors are taking notice because the company’s performance stands out in the current market.

See our latest analysis for Mueller Industries.

The upbeat earnings and consistently stronger results in 2025 have fueled strong momentum in Mueller Industries’ stock. The 90-day share price return stands at 19.3%, and the company boasts a 27.3% total return over the past year. Shareholders who have held on for five years have seen an impressive 617% total return. Investors are responding to both the resilient fundamentals and the continued growth story.

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With the shares rallying on strong results and analyst targets suggesting even more upside, the big question is whether Mueller Industries is still undervalued or if all that future growth is already reflected in the current price.

Price-to-Earnings of 15.5x: Is it justified?

Mueller Industries is currently trading at a price-to-earnings (P/E) ratio of 15.5x, which is lower than both its industry rivals and the wider U.S. market. Compared to the recent close of $104.41, this multiple suggests the market may not be pricing in all of the company’s recent earnings momentum.

Price-to-earnings is a classic metric for assessing whether a stock’s price reflects its profitability. For industrial firms like Mueller Industries, this ratio captures how much investors are willing to pay for each dollar of earnings. It reflects expectations for the company’s growth, resilience, and position in the Machinery sector.

At 15.5x, Mueller Industries appears more attractively valued than its sector counterparts. The industry average is 24.7x and the peer group’s average is 27.9x. The estimated fair P/E ratio for the stock is 20.7x, providing further evidence that shares might have room for a re-rating if the company’s strong fundamentals persist.

Explore the SWS fair ratio for Mueller Industries

Result: Price-to-Earnings of 15.5x (UNDERVALUED)

However, cyclical demand shifts or unexpected cost pressures could impact growth, challenging whether current earnings strength and valuation are truly sustainable in the near term.

Find out about the key risks to this Mueller Industries narrative.

Another View: What About the DCF?

While the price-to-earnings approach points to a possible undervaluation, the SWS DCF model suggests a different story. According to our DCF analysis, Mueller Industries is trading slightly above its estimated fair value. This casts doubt on how much upside remains at current prices.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Mueller Industries for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Mueller Industries Narrative

If you want to dig into the numbers yourself and approach the story from your own angle, you can craft your own analysis in just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Mueller Industries.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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