Mueller Water Products, Inc.
MWA
Miscellaneous Fabricated Metal Products
Mkt Cap
$2.065BPE
27.39Debt
$452.4MCash
$141.2MEV
$2.376BFCF
$33.9MP/E Ratio
27.39Debt
$452.4MCash
$141.2MEV
$2.376BFCF
$33.9MMueller Water Products, Inc. manufactures and markets products and services for the transmission, distribution, and measurement of water used by municipalities, and the residential and non-residential construction industries in the United States, Israel, and internationally. The company operates in two segments, Water Flow Solutions and Water Management Solutions. The Water Flow Solutions segment provides iron gate and specialty valves, and service brass products; and valves for water systems, such as iron gate, butterfly, tapping, check, knife, plug, and ball valves, which are used to control distribution and transmission of potable water and non-potable water, as well as in water transmission or distribution, water treatment facilities, or industrial applications. The Water Management Solutions segment offers dry-barrel and wet-barrel fire hydrants for water infrastructure development, fire protection systems, and water infrastructure repair and replacement projects; pipe repair products, such as couplings, grips, and clamps used to repair leaks; residential, fire line, and commercial water metering products, systems, and services; water leak detection and pipe condition assessment products and services; machines and tools for tapping, drilling, extracting, installing, and stopping-off; gas valve products for use in gas distribution systems; and intelligent water solutions, including pressure control valves, advanced pressure management, network analytics, event management, and date logging. It sells its products under the Canada Valve, Centurion, Ez-Max, Hydro Gate, Hydro-Guard, HYMAX, HYMAX VERSA, Jones, Krausz, Milliken, Mueller, Pratt, Pratt Industrial, Repamax, Repaflex, Singer, Echologics, Echoshore, ePulse, Hersey, i2O Water Ltd, LeakFinderRT, LeakFinderST, LeakListener, LeakTuner, Mi.Echo, Mi.Data, Mi.Hydrant, Mi.Net, Mueller Systems, Sentryx, and U.S. Pipe Valve and Hydrant brands. The company was founded in 1857 and is headquartered in Atlanta, Georgia.
DCF
Discounted Cash Flow Valuation of Mueller Water Products, Inc.
Value
Growth
%
%
Discount
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%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $33.9M | $29.93M | $26.43M | $23.33M | $20.6M | $18.19M | $16.06M | $14.18M | $12.52M | $11.05M | $9.758M | $97.58M |
| DCF | $26.03M | $19.98M | $15.34M | $11.78M | $9.043M | $6.942M | $5.33M | $4.092M | $3.142M | $2.412M | $24.12M | |
| Value | $128.2M | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 5.7%
Earnings Stability 10%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 09-2014 | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 4.7% | 2.6% | 7.9% | 15% | 12% | 6.6% | 7.5% | 6.3% | 6.1% | 5.8% |
| ROA | 9.4% | 8.9% | 9.4% | 8% | 9.4% | 9.3% | 8.7% | 8.7% | 7.4% | 7.6% |
| ROE | 16% | 8.4% | 15% | 25% | 19% | 11% | 11% | 10% | 11% | 11% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +8.83%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -1.67%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +8.58%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.16%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +14.58%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -2.68%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 09-2014 | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | 9.99 | 4.70 | 26.18 | 5.84 | 76.78 | 6.25 | 4.82 | -188.50 | 13.35 |
| Debt Equity | 1.68 | 1.37 | 1.19 | 1.01 | 0.80 | 0.76 | 0.71 | 0.65 | 0.68 | 0.63 |
| MIN | ||||||||||
| Graham Stability | - | - | - | 100% | 100% | 65% | 74% | 87% | 100% | 65% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 13.35.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -32.77.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.65.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 09-2015 | 09-2017 | 09-2019 | 09-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 0.99% | 8.6% | 8.8% | 12% | 3.7% |
| Net Income | 14% | -9.1% | 6.3% | 8.8% | -5.2% |
| Stockholders Equity | 8.9% | 6.5% | 4.2% | -3.7% | -1.5% |
| FCF | - | - | - | - | 82% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +8.59%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +3.74%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -9.07%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -5.23%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +6.46%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -1.45%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +81.52%.