NYSE:MWA

Stock Analysis Report

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.

Snowflake

Fundamentals

Established dividend payer with moderate growth potential.


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


Market Performance


7 Day Return

3.3%

MWA

3.2%

US Machinery

1.0%

US Market


1 Year Return

4.4%

MWA

2.3%

US Machinery

6.7%

US Market

Return vs Industry: MWA exceeded the US Machinery industry which returned 2.3% over the past year.

Return vs Market: MWA underperformed the US Market which returned 6.7% over the past year.


Share holder returns

MWAIndustryMarket
7 Day3.3%3.2%1.0%
30 Day1.4%-3.5%-1.8%
90 Day15.8%-4.6%-1.8%
1 Year6.5%4.4%4.5%2.3%9.1%6.7%
3 Year-4.5%-9.1%46.3%36.8%46.1%36.6%
5 Year34.9%26.1%60.6%41.3%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: MWA ($11.21) is trading below our estimate of fair value ($16.29)

Significantly Undervalued: MWA is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: MWA is poor value based on its PE Ratio (36.4x) compared to the Machinery industry average (19.7x).

PE vs Market: MWA is poor value based on its PE Ratio (36.4x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: MWA is poor value based on its PEG Ratio (1.1x)


Price Based on Value of Assets

PB vs Industry: MWA is overvalued based on its PB Ratio (3.1x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

How is Mueller Water Products expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

32.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: MWA's forecast earnings growth (32.5% per year) is above the savings rate (2.7%).

Earnings vs Market: MWA's earnings (32.5% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: MWA's revenue (5.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MWA's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

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

12.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MWA's earnings have grown by 12.7% 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 (-51.7%) over the past year, making it difficult to compare to the Machinery industry average (18.7%).


Return on Equity

High ROE: MWA's Return on Equity (8.6%) is considered low.


Return on Assets

ROA vs Industry: MWA's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: MWA has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Mueller Water Products's financial position?


Financial Position Analysis

Short Term Liabilities: MWA's short term assets ($540.8M) exceeds its short term liabilities ($171.9M)

Long Term Liabilities: MWA's short term assets (540.8M) do not cover its long term liabilities (554.4M)


Debt to Equity History and Analysis

Debt Level: MWA's debt to equity ratio (78.8%) is considered high

Reducing Debt: MWA's debt to equity ratio has reduced from 174.5% to 78.8% over the past 5 years.

Debt Coverage: MWA's debt is not well covered by operating cash flow (18.1%).

Interest Coverage: MWA's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: MWA's debt is covered by short term assets (assets are 1.210380x debt).


Next Steps

Dividend

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

1.98%

Expected Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years2.0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: MWA's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: MWA's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 reasonable payout ratio (65%), MWA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MWA's dividends in 3 years are forecast to be well covered by earnings (26.8% payout ratio).


Next Steps

Management

What is the CEO of Mueller Water Products's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

J. Hall (55yo)

2.8yrs

Tenure

US$3,195,398

Compensation

Mr. J. Scott Hall has been the Chief Executive Officer and President of Mueller Water Products, Inc. since January 23, 2017. Mr. Hall served as the President of Textron Industrial Segment and Greenlee at T ...


CEO Compensation Analysis

Compensation vs. Market: J.'s total compensation ($USD3.20M) is about average for companies of similar size in the US market ($USD4.08M).

Compensation vs Earnings: J.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: MWA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

8.5yrs

Average Tenure

74yo

Average Age

Experienced Board: MWA's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

Insider Buying: MWA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$101,00009 Aug 19
Stephen Van Arsdell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$10.10
SellUS$63,98513 Jun 19
Shirley Franklin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,700
Max PriceUS$9.55
BuyUS$91,85911 May 19
Bernard Rethore
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$9.19
SellUS$6,63830 Nov 18
Hassan Ali
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Engineering & Information Technology Officer
Shares630
Max PriceUS$10.54

Ownership Breakdown


Management Team

  • Martie Zakas (60yo)

    Executive VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$1.29m
  • Steve Heinrichs (51yo)

    Executive VP

    • Tenure: 1.2yrs
    • Compensation: US$888.20k
  • J. Hall (55yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$3.20m
  • Greg Rogowski (60yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 2yrs
    • Compensation: US$1.57m
  • Hassan Ali (49yo)

    Senior Vice President of Engineering & Information Technology Officer

    • Tenure: 2yrs
  • Yolanda Kokayi

    Director of Communications

    • Tenure: 0yrs
  • Michael Nancarrow (45yo)

    VP & Chief Accounting Officer

    • Tenure: 1.8yrs
  • Whit Kincaid

    Senior Director of Investor Relations and Corporate Development

    • Tenure: 1.7yrs
  • M. Schrock (51yo)

    Vice President of Operations Controller

    • Tenure: 0yrs
  • William Cofield (60yo)

    Senior Vice President of Operations & Supply Chain

    • Tenure: 1.8yrs

Board Members

  • Mike Tokarz (70yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$222.66k
  • Tom Hansen (70yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$191.50k
  • Mark O’Brien (76yo)

    Non-Executive Chairman

    • Tenure: 1.8yrs
    • Compensation: US$228.75k
  • Bernard Rethore (77yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$199.00k
  • Lydia Thomas (75yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$188.50k
  • Jerry Kolb (83yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$215.50k
  • J. Hall (55yo)

    President

    • Tenure: 2.8yrs
    • Compensation: US$3.20m
  • Shirley Franklin (74yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$178.00k
  • Stephen Van Arsdell (68yo)

    Director

    • Tenure: 0.3yrs
  • Christine Ortiz

    Director

    • Tenure: 0.8yrs

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:
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$1.764b
  • Shares outstanding: 157.36m
  • Website: https://www.muellerwaterproducts.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MWANYSE (New York Stock Exchange)YesSeries A Common StockUSUSDMay 2006
JT5DB (Deutsche Boerse AG)YesSeries A Common StockDEEURMay 2006

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 Analysis2019/10/14 01:49
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.

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