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MWA

Mueller Water Products NYSE:MWA Stock Report

Last Price

US$10.42

Market Cap

US$1.6b

7D

-1.0%

1Y

-34.5%

Updated

28 Sep, 2022

Data

Company Financials +
MWA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends4/6

MWA Stock Overview

Mueller Water Products Inc. manufactures and markets products and services used in the transmission, distribution, and measurement of water in North America and internationally.

Mueller Water Products, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mueller Water Products
Historical stock prices
Current Share PriceUS$10.42
52 Week HighUS$17.37
52 Week LowUS$9.90
Beta1.29
1 Month Change-9.15%
3 Month Change-11.17%
1 Year Change-34.47%
3 Year Change-3.52%
5 Year Change-18.72%
Change since IPO-37.79%

Recent News & Updates

Sep 25
Return Trends At Mueller Water Products (NYSE:MWA) Aren't Appealing

Return Trends At Mueller Water Products (NYSE:MWA) Aren't Appealing

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Sep 06

Mueller Water Products: A Decent Play On A Vital Resource

Summary Mueller Water Products has done well to grow at a modest rate in recent years. Fundamentally, the business looks sound, but some of its cash flow data is looking weak so far this year due to rising costs. Fortunately, shares do look reasonably attractive, likely warranting some upside for investors moving forward. Water is, undeniably, one of the most important resources on the planet. Although 70% of the planet is covered by it, most of it is not potable and that which is often can be polluted. Regardless of the type of water or the quality of it, there is a significant amount of demand that needs to be met in order for such a large global population to not only exist, but to thrive. One company that's dedicated to helping meet this need is Mueller Water Products (MWA). In recent years, management has done a good job growing the company's top line and, for the most part, its cash flows. Shares of the company are also reasonably priced from a cash flow perspective, both on an absolute basis and relative to similar players. I would make the case that there are definitely better opportunities out there right now. But for investors who like this space, I can understand why a purchase of the stock might be made. Going with the flow According to the management team at Mueller Water Products, the company operates as a manufacturer and marketer of products and services that are used in the transmission, distribution, and measurement of water throughout North America. Its customers largely consist of municipalities, as well as players in both the residential and non-residential construction industries. To truly understand the firm, however, we should break it up into the two key operating segments that the company has. The first of the company's two segments is referred to as Infrastructure. Through this unit, the company produces valves for water and gas systems, including iron gate, butterfly, tapping, check, knife, plug, and a variety of other valves. It also produces wet-barrel fire hydrants. But the company does not play is just a marginal operator in these areas. Management claims that they have one of the largest installed bases of iron gate valves and fire hydrants in the country, with these products being used in the largest 100 metropolitan areas of the US. This unit is also responsible for the production of service brass products, pipe repair products like clamps and couplings that are used to repair leaks, and more. This segment largely does focus on the water space, its offerings can also be applied to natural gas utilities. Last year, this segment was responsible for 92% of the firm's revenue and more than all of its profits. The next, far smaller, segment, is referred to as Technologies. Through this unit, the company provides residential and commercial water metering, water leak detection and pipe condition assessment products, and related systems and services. As was the case with the Infrastructure segment, Technologies generates most of its revenue from municipalities. But it also generates sales from waterworks distributors. Other products that it sells include water leak detection and pipe condition assessment products and services. One acquisition that the company made in 2021, of a firm called i2O, also involves the sale of pressure management intelligent water Network Solutions and software. Author - SEC EDGAR Data Over the past five years, the management team at Mueller Water Products has done a good job growing the company's top line. Sales have increased from $826 million in 2017 to $1.11 billion in 2021. The most significant growth came from 2020 to 2021, with revenue jumping by 15.2% thanks to higher shipment volume across most of its product lines, as well as higher pricing. The growth associated with the Infrastructure came in at 15.7%, aided by the aforementioned factors as well as by a $6 million gain associated with the elimination of a one-month reporting lag for one of its subsidiaries. when it comes to the 2022 fiscal year, sales for the company have continued to rise nicely, with revenue in the first nine months of the year climbing from $815.4 million in 2021 to $916 million this year. This 12.3% increase came about largely because of higher pricing and increased shipment volumes. However, just as was the case when it came to annual data from 2021, we don't know how much of the rise can be attributed to one cause versus the other. The bottom line for the company has been somewhat mixed but generally positive in recent years. Net income, for instance, has shown no real trend. Last year, it did come in at $70.4 million. That's down slightly from the $72 million experienced in 2020 but was up from the $63.8 million reported for the 2019 fiscal year. More consistent has been operating cash flow. This metric rose from $16.1 million in 2017 to $133.1 million in 2018. It subsequently fell to $92.5 million in 2019 before climbing consistently year after year to hit $156.7 million in 2021. An even more consistent trend can be seen when adjusting for changes in working capital. In this scenario, cash flow has risen from $101 million in 2017 to $152 million in 2021. A general trend can also be seen by looking at EBITDA, which rose from $163.8 million in 2017 to $203.6 million last year. Author - SEC EDGAR Data As the charts throughout this article illustrate, profitability so far for 2022 has been mixed. Net income has risen from $52 million to $69.5 million. However, operating cash flow has declined from $123.3 million to $20.5 million. On an adjusted basis, it would have fallen from $127.1 million to $125.5 million. Meanwhile, EBITDA also declined slightly, dropping from $158.8 million to $155.9 million. Management has attributed some of this pain to a decrease in gross margin from 33.4% in the first three quarters of 2021 to 30.4% the same time this year. That, in turn, can be chalked up to higher inflationary pressures, labor challenges, supply disruptions, and a rise in its warranty obligations.

Aug 18
At US$12.11, Is It Time To Put Mueller Water Products, Inc. (NYSE:MWA) On Your Watch List?

At US$12.11, Is It Time To Put Mueller Water Products, Inc. (NYSE:MWA) On Your Watch List?

Mueller Water Products, Inc. ( NYSE:MWA ), is not the largest company out there, but it saw a decent share price growth...

Aug 06
Mueller Water Products (NYSE:MWA) Is Due To Pay A Dividend Of $0.058

Mueller Water Products (NYSE:MWA) Is Due To Pay A Dividend Of $0.058

Mueller Water Products, Inc. ( NYSE:MWA ) will pay a dividend of $0.058 on the 22nd of August. This means that the...

Shareholder Returns

MWAUS MachineryUS Market
7D-1.0%-2.5%-2.0%
1Y-34.5%-17.4%-20.3%

Return vs Industry: MWA underperformed the US Machinery industry which returned -19.9% over the past year.

Return vs Market: MWA underperformed the US Market which returned -22.1% over the past year.

Price Volatility

Is MWA's price volatile compared to industry and market?
MWA volatility
MWA Average Weekly Movement4.4%
Machinery Industry Average Movement5.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: MWA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MWA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18573,400John Hallhttps://www.muellerwaterproducts.com

Mueller Water Products Inc. manufactures and markets products and services used in the transmission, distribution, and measurement of water in North America and internationally. Its products and services are used by municipalities, and the residential and non-residential construction industries. It operates through two segments, Infrastructure and Technologies.

Mueller Water Products, Inc. Fundamentals Summary

How do Mueller Water Products's earnings and revenue compare to its market cap?
MWA fundamental statistics
Market CapUS$1.63b
Earnings (TTM)US$87.90m
Revenue (TTM)US$1.21b

18.6x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MWA income statement (TTM)
RevenueUS$1.21b
Cost of RevenueUS$841.30m
Gross ProfitUS$370.30m
Other ExpensesUS$282.40m
EarningsUS$87.90m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.56
Gross Margin30.56%
Net Profit Margin7.25%
Debt/Equity Ratio63.3%

How did MWA perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

41%

Payout Ratio