NYSE:MWA

Stock Analysis Report

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Market Cap

US$2.3b

Last Updated

2021/08/03 00:40 UTC

Data Sources

Company Financials +

Executive Summary

Mueller Water Products, Inc. manufactures and markets products and services for use in the transmission, distribution, and measurement of water in the United States, Canada, and internationally. More Details


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MWA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MWA's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.5%

MWA

-0.4%

US Machinery

-0.4%

US Market


1 Year Return

43.5%

MWA

46.5%

US Machinery

34.4%

US Market

Return vs Industry: MWA underperformed the US Machinery industry which returned 49.8% over the past year.

Return vs Market: MWA exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

MWAIndustryMarket
7 Day-0.5%-0.4%-0.4%
30 Day-1.2%-0.9%-0.4%
90 Day0.8%-3.5%4.0%
1 Year46.1%43.5%49.6%46.5%36.5%34.4%
3 Year25.0%18.1%58.8%49.5%62.0%51.9%
5 Year31.1%20.8%133.8%109.4%121.8%97.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

30.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MWA ($14.75) is trading above our estimate of fair value ($4.61)

Significantly Below Fair Value: MWA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MWA is good value based on its PE Ratio (30.9x) compared to the US Machinery industry average (31.2x).

PE vs Market: MWA is poor value based on its PE Ratio (30.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MWA is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: MWA is overvalued based on its PB Ratio (3.5x) compared to the US Machinery industry average (2.8x).


Future Growth

How is Mueller Water Products forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MWA's forecast earnings growth (14.9% per year) is above the savings rate (2%).

Earnings vs Market: MWA's earnings (14.9% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: MWA's earnings are forecast to grow, but not significantly.

Revenue vs Market: MWA's revenue (4.1% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: MWA's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Mueller Water Products performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MWA has high quality earnings.

Growing Profit Margin: MWA's current net profit margins (7.6%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: MWA's earnings have grown by 9.3% per year over the past 5 years.

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

Earnings vs Industry: MWA had negative earnings growth (-30.1%) over the past year, making it difficult to compare to the Machinery industry average (6.6%).


Return on Equity

High ROE: MWA's Return on Equity (11.3%) is considered low.


Financial Health

How is Mueller Water Products's financial position?


Financial Position Analysis

Short Term Liabilities: MWA's short term assets ($614.2M) exceed its short term liabilities ($160.2M).

Long Term Liabilities: MWA's short term assets ($614.2M) exceed its long term liabilities ($606.2M).


Debt to Equity History and Analysis

Debt Level: MWA's debt to equity ratio (66.8%) is considered high.

Reducing Debt: MWA's debt to equity ratio has reduced from 131.8% to 66.8% over the past 5 years.

Debt Coverage: MWA's debt is well covered by operating cash flow (46.2%).

Interest Coverage: MWA's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Dividend

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

1.49%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 03 2021Ex Dividend DateAug 09 2021Dividend Pay DateAug 20 202111 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: MWA's dividend (1.49%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: MWA's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), MWA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MWA's dividends in 3 years are forecast to be well covered by earnings (33.2% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

John Hall (57 yo)

4.58yrs

Tenure

US$4,286,766

Compensation

Mr. John Scott Hall serves as Independent Director at Altra Industrial Motion Corp. since October 20, 2020. He has been the Chief Executive Officer and President of Mueller Water Products, Inc. since Janua...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD4.29M) is about average for companies of similar size in the US market ($USD3.68M).

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


Leadership Team

Experienced Management: MWA's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: MWA's board of directors are considered experienced (9.8 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 Water Products, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mueller Water Products, Inc.
  • Ticker: MWA
  • Exchange: NYSE
  • Founded: 1857
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$2.338b
  • Shares outstanding: 158.53m
  • Website: https://www.muellerwaterproducts.com

Number of Employees


Location

  • Mueller Water Products, Inc.
  • 1200 Abernathy Road NE
  • Suite 1200
  • Atlanta
  • Georgia
  • 30328
  • United States

Listings


Biography

Mueller Water Products, Inc. manufactures and markets products and services for use in the transmission, distribution, and measurement of water in the United States, Canada, and internationally. It operate...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 00:40
End of Day Share Price2021/08/02 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.