Mueller Water Products, Inc. (MWA, Financial) has recently seen a notable uptick in its stock performance. With a market capitalization of $2.34 billion and a current stock price of $14.99, the company has experienced a 0.25% gain over the past week and an impressive 11.02% gain over the past three months. According to GuruFocus's valuation metrics, the stock is currently fairly valued, with a GF Value of $14.23, slightly below its past GF Value of $14.37. This marks a shift from its previous status as modestly undervalued. These figures suggest a positive trend for the company's stock, reflecting investor confidence and a potentially stable future outlook.
Company Overview
Mueller Water Products, Inc., operating within the industrial products industry, is a key player in the water infrastructure sector. The company specializes in the manufacture and sale of products and services essential for water transmission, distribution, and measurement. Its operations are divided into two segments: Water Flow Solutions and Water Management Solutions. The former includes a range of valves and service brass products, while the latter offers solutions like fire hydrants and leak detection systems. Predominantly serving the United States market, Mueller Water Products is a vital contributor to water management infrastructure.
Assessing Profitability
When it comes to profitability, Mueller Water Products stands out with a Profitability Rank of 8/10, indicating a strong ability to generate earnings. The company's Operating Margin is at 10.79%, surpassing 68.3% of 2,934 companies in the industry. Its ROE (Return on Equity) stands at 12.27%, ROA (Return on Assets) at 5.73%, and ROIC (Return on Invested Capital) at 8.79%, each outperforming a majority of their peers. Furthermore, the company has maintained profitability for the past 10 years, a testament to its financial resilience and operational efficiency.
Growth Trajectory
Mueller Water Products has demonstrated solid growth, as reflected by its Growth Rank of 7/10. The company's 3-Year Revenue Growth Rate per Share is at 10.20%, and its 5-Year Revenue Growth Rate per Share is at 7.90%, both outperforming a significant portion of the industry. While the Total Revenue Growth Rate for the next 3 to 5 years is estimated at a modest 0.73%, the company's EPS without NRI (Net Recognizable Income) is expected to grow at a robust rate of 12.00% over the same period. These growth rates indicate a company that is expanding steadily, albeit with a cautious outlook on future revenue.
Key Shareholders
Notable investors have taken significant positions in Mueller Water Products, signaling confidence in the company's prospects. Mario Gabelli (Trades, Portfolio) holds 3,174,430 shares, representing 2.03% of the company, while HOTCHKIS & WILEY owns 620,910 shares, accounting for 0.4%. Jeremy Grantham (Trades, Portfolio) also has a stake with 250,444 shares, making up 0.16% of the company. The involvement of these prominent investors could influence the company's strategic decisions and potentially impact its stock performance.
Competitive Landscape
In comparison to its competitors, Mueller Water Products holds its own in the industrial products sector. Mirion Technologies Inc (MIR, Financial) has a market cap of $2.15 billion, Standex International Corp (SXI, Financial) at $1.84 billion, and Tennant Co (TNC, Financial) at $1.82 billion. These companies are close in market capitalization, indicating a competitive field where Mueller Water Products must continue to innovate and efficiently manage its resources to maintain its market position.
Conclusion
In conclusion, Mueller Water Products, Inc.'s recent stock price performance reflects a company that is fairly valued and has shown consistent profitability and growth. The company's strong market position, coupled with its solid financial metrics and the backing of significant shareholders, presents a compelling case for investors. While facing stiff competition, Mueller Water Products appears poised to continue its trajectory of steady growth and profitability, making it a noteworthy consideration for value investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
