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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Mueller Water Products, Inc. (NYSE:MWA) due to its excellent fundamentals in more than one area. MWA is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Mueller Water Products here.
Adequate balance sheet average dividend payer
MWA’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that MWA manages its cash and cost levels well, which is an important determinant of the company’s health. MWA’s has produced operating cash levels of 0.23x total debt over the past year, which implies that MWA’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
MWA dishes out decent dividend payments over time, higher than the low-risk savings rate, which is what investors want in order to compensate them for the risk of holding a stock. That said, please remember that dividend yields are a function of stock prices and corporate profits, both of which can be volatile.
For Mueller Water Products, I’ve compiled three essential factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for MWA’s future growth? Take a look at our free research report of analyst consensus for MWA’s outlook.
- Historical Performance: What has MWA’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MWA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.