NYSE:MLI

Stock Analysis Report

Executive Summary

Mueller Industries, Inc. manufactures and sells copper, brass, aluminum, and plastic products in the United States, the United Kingdom, Canada, Asia, and Mexico.

Rewards

Trading at 49.7% below its fair value

Risk Analysis

Earnings have declined by -0.4% per year over past 5 years

Has a high level of debt



Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Mueller Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MLI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

MLI

-1.4%

US Machinery

0.5%

US Market


1 Year Return

-1.2%

MLI

9.4%

US Machinery

20.3%

US Market

Return vs Industry: MLI underperformed the US Machinery industry which returned 9.4% over the past year.

Return vs Market: MLI underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

MLIIndustryMarket
7 Day2.4%-1.4%0.5%
30 Day7.7%-1.7%2.0%
90 Day8.1%1.4%9.4%
1 Year0.2%-1.2%11.4%9.4%22.8%20.3%
3 Year-9.9%-20.2%37.8%29.0%50.1%40.4%
5 Year10.5%-3.8%61.4%42.3%73.1%54.1%

Price Volatility Vs. Market

How volatile is Mueller Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mueller Industries undervalued compared to its fair value and its price relative to the market?

49.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MLI ($33.2) is trading below our estimate of fair value ($66.06)

Significantly Below Fair Value: MLI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MLI is good value based on its PE Ratio (18.3x) compared to the Machinery industry average (21.3x).

PE vs Market: MLI is good value based on its PE Ratio (18.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MLI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MLI is overvalued based on its PB Ratio (2.9x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Mueller Industries forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-1.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MLI's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if MLI's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MLI's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: MLI's revenue is forecast to decline over the next 3 years (-1.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MLI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Mueller Industries performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLI has high quality earnings.

Growing Profit Margin: MLI's current net profit margins (4.2%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: MLI's earnings have declined by -0.4% per year over the past 5 years.

Accelerating Growth: MLI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MLI had negative earnings growth (-3.1%) over the past year, making it difficult to compare to the Machinery industry average (1.5%).


Return on Equity

High ROE: MLI's Return on Equity (16%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mueller Industries's financial position?


Financial Position Analysis

Short Term Liabilities: MLI's short term assets ($693.8M) exceed its short term liabilities ($234.3M).

Long Term Liabilities: MLI's short term assets ($693.8M) exceed its long term liabilities ($474.5M).


Debt to Equity History and Analysis

Debt Level: MLI's debt to equity ratio (58.3%) is considered high.

Reducing Debt: MLI's debt to equity ratio has increased from 30.5% to 58.3% over the past 5 years.

Debt Coverage: MLI's debt is well covered by operating cash flow (51.9%).

Interest Coverage: MLI's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

Inventory Level: MLI has a high level of physical assets or inventory.

Debt Coverage by Assets: MLI's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Mueller Industries's current dividend yield, its reliability and sustainability?

1.20%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: MLI's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MLI's dividend (1.2%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: MLI's dividends per share have been stable in the past 10 years.

Growing Dividend: MLI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.1%), MLI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Greg Christopher (57yo)

11.3yrs

Tenure

US$7,350,013

Compensation

Mr. Gregory L. Christopher, also known as Greg, has been the Chairman and Chief Executive Officer of Mueller Industries Inc. since January 1, 2016 and October 30, 2008 respectively. Mr. Christopher served  ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD7.35M) is above average for companies of similar size in the US market ($USD3.82M).

Compensation vs Earnings: Greg's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Christopher
Chairman of the Board & CEO11.3yrsUS$7.35m1.21% $23.0m
Jeffrey Martin
CFO & Treasurer7yrsUS$1.43m0.26% $4.9m
Steffen Sigloch
Chief Manufacturing Officer2.8yrsUS$1.75m0.30% $5.7m
Nicholas Moss
President of BK Products4.8yrsUS$1.61m0.38% $7.3m
Mark Millerchip
Executive Director of European Operations9.8yrsUS$948.92kno data
Kristee Ford
Chief Information Officer1.8yrsno data0.019% $358.0k
Christopher Miritello
VP, General Counsel & Secretary3.1yrsno data0.038% $716.3k
Brian Barksdale
Vice President of Marketing6.3yrsno data0.079% $1.5m
Daniel Corbin
Senior Vice President of Manufacturing2.8yrsno data0.10% $1.9m
Gary Westermeyer
President of Refrigeration2.8yrsno data0.068% $1.3m

3.9yrs

Average Tenure

52yo

Average Age

Experienced Management: MLI's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Christopher
Chairman of the Board & CEO11.3yrsUS$7.35m1.21% $23.0m
Gary Gladstein
Independent Director19.6yrsUS$211.72k0.20% $3.8m
Harvey Karp
Chairman Emeritus8.1yrsUS$6.09mno data
Gennaro Fulvio
Independent Director17.8yrsUS$166.72k0.048% $910.4k
Terry Hermanson
Lead Independent Director1.1yrsUS$174.72k0.055% $1.0m
Paul Flaherty
Independent Director12.5yrsUS$156.72k0.026% $504.6k
Scott Goldman
Independent Director12.1yrsUS$164.72k0.023% $445.1k
John Hansen
Independent Director5.5yrsUS$166.72k0.10% $2.0m
Charles Herzog
Independent Director2.6yrsUS$160.12k0.023% $435.9k
Elizabeth Donovan
Independent Director1.1yrsno data0.0053% $100.5k

6.8yrs

Average Tenure

69.5yo

Average Age

Experienced Board: MLI's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mueller Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mueller Industries, Inc.
  • Ticker: MLI
  • Exchange: NYSE
  • Founded: 1900
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$1.906b
  • Shares outstanding: 56.95m
  • Website: https://www.muellerindustries.com

Number of Employees


Location

  • Mueller Industries, Inc.
  • 150 Schilling Boulevard
  • Suite 100
  • Collierville
  • Tennessee
  • 38017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MLINYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 1964
MUDDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1964

Biography

Mueller Industries, Inc. manufactures and sells copper, brass, aluminum, and plastic products in the United States, the United Kingdom, Canada, Asia, and Mexico. Its Piping Systems segment manufactures copper tubes and fittings, and line sets for water distribution system, heating system, air-conditioning, and refrigeration applications, as well as drainage, waste, and vent systems. It also manufactures steel pipe nipples; and resells imported brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products. This segment sells its products primarily to plumbing, refrigeration, and air-conditioning wholesalers; and hardware wholesalers and co-ops, building product retailers, and air-conditioning original equipment manufacturers (OEMs). The company’s Industrial Metals segment manufactures and sells brass, bronze, and copper alloy rods; cold-formed aluminum and copper products for automotive, military ordnance, aerospace, and general manufacturing industries; brass and aluminum forgings for automotive components, brass fittings, industrial machinery, valve bodies, gear blanks, and computer hardware; and brass, aluminum, and stainless steel valves, as well as fluid control systems and gas train assembles for compressed gas, pharmaceutical, construction, and gas appliance markets. Its Climate segment offers valves, protection devices, and brass fittings, as well as tubular assemblies and fabrications for various OEMs in the commercial heating, ventilation, and air-conditioning (HVAC) and refrigeration markets; components and accessories for the air-conditioning and refrigeration markets; and coaxial heat exchangers and twisted tubes for HVAC, geothermal, refrigeration, swimming pool heat pump, marine, ice machine, commercial boiler, and heat reclamation markets. The company was founded in 1900 and is headquartered in Collierville, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:41
End of Day Share Price2020/02/20 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.