Mueller Industries (MLI) AI Stock Analysis

• Market Cap: $13.33B
• Dividend Yield: 0.85%
• Average Volume (3M): 896.19K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.04
• Revenue Growth: 15.71%
• EPS Growth: 29.60%
• Country: US
• Employees: 5,168
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.38
• Shares Outstanding: 111,013,630
• 10 Day Avg. Volume: 831,328
• 30 Day Avg. Volume: 896,192
• PEG Ratio: 0.57
• Price to Book (P/B): 5.02
• Price to Sales (P/S): 3.00
• P/FCF Ratio: 18.24
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 10.50
• Enterprise Value/Ebitda: 11.11
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $136.00 ▲(23.21% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by high-quality financials—strong margins, excellent balance-sheet strength, and durable free cash flow. This is partly offset by weaker near-term technical momentum (below key moving averages with negative MACD). Valuation is reasonable, and the 40% dividend increase is an incremental positive.

Positive Factors

Improved Profitability / Margins

Margins have materially improved versus prior years (net margin up from ~5.8% in 2020 to ~16% in 2024), reflecting stronger pricing power and operational efficiency. Higher structural profitability supports durable cash flows, reinvestment capacity and resilience through cyclical periods.

Very Strong Balance Sheet / Low Leverage

Extremely low leverage and rising equity (from ~$0.78B in 2020 to ~$3.21B in 2025) give the company significant financial flexibility. This conservatism reduces bankruptcy risk, enables opportunistic M&A or buybacks, and supports sustained capital returns across cycles.

Durable Cash Generation & Shareholder Returns

Consistently positive free cash flow with high cash conversion (~87.6% of net income in 2024) and a sizable dividend increase demonstrate repeatable cash generation. This underpins ongoing shareholder returns and funds capex or strategic investments without adding leverage.

Negative Factors

Revenue Cyclicality

Top-line volatility tied to industrial and construction end-markets makes revenue growth uneven. Persistent cyclicality can pressure planning, capital allocation and may force margin compression in weaker demand periods, challenging multi-year growth visibility.

Variable Free Cash Flow Growth

Free cash flow has been generally positive but exhibited meaningful year-to-year swings due to working-capital and cycle sensitivity. This variability raises uncertainty around the repeatability of large dividends or discretionary investments in weaker phases of the cycle.

Asset Base Contraction Nuance

A decline in total assets in 2025, while equity rose, suggests shifts in the asset base or inventory/work-capital management. If driven by reduced investment or demand retrenchment, it may limit capacity to scale or indicate sensitivity to end-market downturns over the medium term.

Mueller Industries Business Overview & Revenue Model

Company Description

Mueller Industries, Inc. manufactures and sells copper, brass, aluminum, and plastic products in the United States, the United Kingdom, Canada, South Korea, the Middle East, China, and Mexico. It operates through three segments: Piping Systems, Industrial Metals, and Climate. The Piping Systems segment offers copper tubes, fittings, line sets, and pipe nipples; PEX plumbing and radiant systems; and plumbing-related fittings and plastic injection tooling. It also resells steel pipes, brass and plastic plumbing valves, malleable iron fittings and faucets, and plumbing specialties; and supplies water tubes. This segment sells its products to wholesalers in the plumbing and refrigeration markets, distributors to the manufactured housing and recreational vehicle industries, building material retailers, and air-conditioning original equipment manufacturers (OEMs). The Industrial Metals segment manufactures brass, bronze, and copper alloy rods; plumbing brass, valves, and fittings; cold-form aluminum and copper products; machining of aluminum, steel, brass, and cast iron impacts and castings; brass and aluminum forgings; brass, aluminum, and stainless-steel valves; fluid control solutions; and gas train assembles to OEMs in the industrial, construction, HVAC, plumbing, and refrigeration markets. The Climate segment offers valves, protection devices, and brass fittings for various OEMs in the commercial HVAC and refrigeration markets; high-pressure components and accessories for the air-conditioning and refrigeration markets; coaxial heat exchangers and twisted tubes for the HVAC, geothermal, refrigeration, swimming pool heat pump, marine, ice machine, commercial boiler, and heat reclamation markets; insulated HVAC flexible duct systems; and brazed manifolds, headers, and distributor assemblies. The company was founded in 1917 and is headquartered in Collierville, Tennessee.

How the Company Makes Money

Mueller Industries generates revenue primarily through the sale of its diverse product range to wholesalers, contractors, and retailers in the plumbing and HVAC industries. The company benefits from a strong distribution network and a reputation for quality, which helps it secure long-term contracts and repeat business. Key revenue streams include direct sales of plumbing and HVAC products, custom manufacturing services, and partnerships with major home improvement retailers. Additionally, Mueller Industries capitalizes on market demand fluctuations and economic cycles in the construction and industrial sectors to optimize pricing and expand its market share.

Mueller Industries Financial Statement Overview

Summary

Strong profitability (net margin ~16% in 2024; EBIT margin ~21.8%), exceptional balance-sheet conservatism (debt-to-equity ~0.01–0.02), and consistently positive free cash flow with solid cash conversion. Main risk is cyclical/volatile revenue and variability in free cash flow growth.

Income Statement

Profitability is strong and structurally improved versus earlier years, with net profit margin rising from ~5.8% (2020) to ~16.0% (2024) alongside healthy operating profitability (EBIT margin ~21.8% in 2024). Revenue has been volatile (down in 2023, then up ~10.2% in 2024), but earnings held up well (net income roughly flat 2023–2024) and the 2025 annual figures show further step-up in revenue and net income. Key watchout is top-line cyclicality/volatility typical of industrial end-markets, which can pressure results in down years.

Balance Sheet

The balance sheet is exceptionally conservative: debt is very low relative to equity (debt-to-equity ~0.01–0.02 in 2023–2024), a major improvement from 2020 when leverage was materially higher. Equity has compounded strongly (from ~$0.78B in 2020 to ~$2.77B in 2024 and ~$3.21B in 2025), supporting resilience and financial flexibility. Returns on equity remain robust (~21.8% in 2024). The main nuance is that total assets dipped in 2025 versus 2024, but with rising equity and minimal debt, balance-sheet risk still screens as very low.

Cash Flow

Cash generation is strong and generally high quality. Free cash flow has been consistently positive (about $565.7M in 2024 and $686.6M in 2025), and cash conversion is solid (free cash flow at ~87.6% of net income in 2024; ~92.0% in 2023). Operating cash flow covered net income well in recent years (about 1.62x in 2024 and 2.12x in 2023), indicating earnings are backed by cash. The key weakness is variability in free cash flow growth (declines in 2023 and 2024 after a strong 2022), suggesting working-capital and cycle sensitivity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.18B	3.77B	3.42B	3.98B	3.77B
Gross Profit	1.14B	1.04B	986.83M	1.12B	830.36M
EBITDA	1.08B	874.00M	886.41M	920.57M	694.24M
Net Income	765.19M	604.88M	602.90M	658.32M	468.52M
Balance Sheet
Total Assets	3.02B	3.29B	2.76B	2.24B	1.73B
Cash, Cash Equivalents and Short-Term Investments	1.39B	1.06B	1.27B	678.88M	87.92M
Total Debt	46.46M	33.76M	35.56M	23.85M	24.99M
Total Liabilities	497.12M	486.50M	400.58M	428.44M	471.97M
Stockholders Equity	2.49B	2.77B	2.34B	1.79B	1.22B
Cash Flow
Free Cash Flow	686.64M	565.71M	618.74M	686.30M	279.87M
Operating Cash Flow	755.44M	645.91M	672.77M	723.94M	311.70M
Investing Cash Flow	-24.91M	-606.93M	135.08M	-242.00M	29.07M
Financing Cash Flow	-394.62M	-160.48M	-104.51M	-102.66M	-376.72M

Mueller Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 110.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLI, the sentiment is Positive. The current price of 110.38 is below the 20-day moving average (MA) of 123.02, below the 50-day MA of 122.10, and above the 200-day MA of 99.85, indicating a neutral trend. The MACD of -1.59 indicates Positive momentum. The RSI at 47.07 is Neutral, neither overbought nor oversold. The STOCH value of 52.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MLI.

Mueller Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLI	79 Outperform	$13.33B	17.24	25.58%	0.85%	15.71%	29.60%
AZZ	79 Outperform	$4.03B	12.63	27.38%	0.67%	1.55%	701.41%
CRS	78 Outperform	$19.55B	44.72	23.48%	0.24%	2.40%	81.54%
ESAB	71 Outperform	$7.61B	33.32	13.86%	0.33%	1.19%	-7.78%
WOR	70 Outperform	$2.79B	26.25	11.31%	1.27%	7.43%	148.83%
ATI	69 Neutral	$22.05B	56.46	22.12%	―	7.75%	6.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Mueller Industries Corporate Events

Mueller Industries Announces 40% Increase in Quarterly Dividend

On February 19, 2026, Mueller Industries, Inc. announced that its board declared a regular quarterly cash dividend of $0.35 per share on its common stock, marking the sixth consecutive year of a double-digit dividend increase. The dividend, representing a 40 percent increase over the 2025 quarterly dividend, will be paid on March 27, 2026 to shareholders of record as of March 13, 2026, underscoring the company’s continued emphasis on shareholder returns and financial strength.

The enlarged payout signals management’s confidence in Mueller Industries’ cash generation capabilities and its strategic positioning across essential industrial end markets. For investors, the move highlights an increasingly robust capital return profile, which may enhance the stock’s appeal among income-focused shareholders and further solidify the company’s standing in the industrial sector.

The most recent analyst rating on (MLI) stock is a Hold with a $126.00 price target. To see the full list of analyst forecasts on Mueller Industries stock, see the MLI Stock Forecast page.