Mueller Water Products (MWA) AI Stock Analysis

• Market Cap: $4.10B
• Dividend Yield: 1.02%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 27.7
• Beta (1Y): 1.13
• Revenue Growth: 10.19%
• EPS Growth: 20.71%
• Country: US
• Employees: 3,400
• Sector: Industrials
• Sector Strength: 75
• Industry: Industrial - Machinery
• EPS (TTM): 0.34
• Shares Outstanding: 156,293,520
• 10 Day Avg. Volume: 1,458,726
• 30 Day Avg. Volume: 1,367,793
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.79
• Enterprise Value/Gross Profit: 7.98
• Enterprise Value/Ebitda: 14.60
• 1Y Price Target: $28.00
• Price Target Upside: 6.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: $29.00 ▲(10.52% Upside)

Mueller Water Products receives a solid score driven by strong financial performance and positive earnings call insights. The technical analysis supports a bullish trend, although the valuation indicates the stock may be expensive. The company's strategic initiatives and increased guidance further enhance its outlook, despite some macroeconomic challenges.

Positive Factors

Cost Savings

Elimination of the 125% reciprocal China tariff should result in nearly $50 million in annualized savings.

Guidance

The company is on track to deliver on the guidance that was modestly raised last quarter.

Negative Factors

Housing Market

Management remains cautious on housing into fiscal 4Q and suggests that federal infrastructure funding is not a driver of guidance.

Tariffs

Tariffs announced are expected to impact approximately 15% of cost of goods sold and could have an annualized impact of 8-9% before mitigation efforts.

Mueller Water Products Business Overview & Revenue Model

Company Description

Mueller Water Products, Inc. (MWA) is a leading manufacturer and supplier of water infrastructure and management solutions in North America. The company operates primarily through two segments: Mueller and Krausz. Its core products include water distribution and transmission systems, valves, hydrants, metering solutions, and other related services that support the efficient management and distribution of water resources. Mueller Water Products focuses on innovation and technology to improve water management systems and enhance sustainability in water usage.

How the Company Makes Money

Mueller Water Products generates revenue through the sale of its products, which include a wide range of water-related infrastructure components such as valves, hydrants, and water meters. The company primarily serves municipalities and utility companies, which are its key customers. Revenue streams include direct product sales, ongoing maintenance contracts, and service agreements. Additionally, the company benefits from partnerships with municipalities for infrastructure projects, as well as collaborations with engineering firms and contractors. Economic factors such as government infrastructure spending and community investments in water systems significantly influence Mueller’s earnings. The company also invests in research and development to create innovative solutions that address evolving water management challenges, thereby enhancing its market position and revenue potential.

Mueller Water Products Financial Statement Overview

Summary

Mueller Water Products demonstrates solid financial health with strong revenue growth, improving profitability, and a balanced capital structure. While the decline in free cash flow growth is a potential risk, the company's overall financial performance remains robust, supported by efficient operations and effective cost management.

Income Statement

Mueller Water Products shows strong revenue growth with a TTM increase of 1.72% and consistent improvement over the past years. The gross profit margin remains stable at around 34.9%, indicating efficient cost management. The net profit margin has improved to 10.67% in the TTM, reflecting enhanced profitability. EBIT and EBITDA margins are healthy at 16.28% and 19.08%, respectively, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.48 in the TTM, indicating a stronger equity position and reduced leverage. Return on equity is robust at 17.30%, demonstrating effective use of shareholder funds. The equity ratio stands at 53.69%, reflecting a solid capital structure with a good balance between debt and equity.

Cash Flow

Operating cash flow remains strong with a coverage ratio of 0.93, indicating good cash generation relative to net income. However, free cash flow has declined by 10.04% in the TTM, which could be a concern if the trend continues. The free cash flow to net income ratio is healthy at 0.77, suggesting efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.31B	1.28B	1.25B	1.11B	964.10M
Gross Profit	487.60M	459.00M	379.50M	364.30M	358.50M	328.20M
EBITDA	266.50M	250.10M	196.40M	190.00M	178.30M	178.50M
Net Income	149.10M	115.90M	85.50M	76.60M	70.40M	72.00M
Balance Sheet
Total Assets	1.73B	1.64B	1.50B	1.50B	1.52B	1.40B
Cash, Cash Equivalents and Short-Term Investments	372.00M	309.90M	160.30M	146.50M	227.50M	208.90M
Total Debt	479.10M	477.50M	472.10M	473.70M	446.90M	474.90M
Total Liabilities	801.40M	825.80M	793.50M	828.80M	823.10M	754.30M
Stockholders Equity	929.00M	810.10M	711.50M	669.30M	694.90M	640.70M
Cash Flow
Free Cash Flow	172.90M	191.40M	61.40M	-2.40M	94.00M	72.60M
Operating Cash Flow	225.10M	238.80M	109.00M	52.30M	156.70M	140.30M
Investing Cash Flow	-52.00M	-47.20M	-42.10M	-54.90M	-81.70M	-67.50M
Financing Cash Flow	-52.50M	-46.00M	-48.80M	-72.00M	-58.80M	-41.40M

Mueller Water Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MWA, the sentiment is Positive. The current price of 26.24 is above the 20-day moving average (MA) of 25.24, above the 50-day MA of 24.67, and above the 200-day MA of 24.62, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 57.80 is Neutral, neither overbought nor oversold. The STOCH value of 77.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MWA.

Mueller Water Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FELE	81 Outperform	$4.26B	24.78	14.38%	1.09%	2.20%	-3.74%
FLS	77 Outperform	$6.88B	23.86	13.91%	1.60%	3.15%	14.18%
MWA	75 Outperform	$4.10B	27.71	17.33%	1.02%	10.19%	20.71%
KAI	74 Outperform	$4.00B	37.82	12.21%	0.39%	1.74%	-7.64%
WTS	74 Outperform	$9.04B	29.14	17.75%	0.66%	2.96%	12.62%
Sector *	71 Outperform	¥267.71B	14.93	8.32%	2.79%	6.06%	11.03%
THR	63 Neutral	$833.57M	15.97	10.88%	―	-2.16%	9.41%

Mueller Water Products Corporate Events

Mueller Water Products Highlights Q2FY25 Financial Performance

Mueller Water Products released an updated investor presentation on May 7, 2025, highlighting its financial performance and strategic initiatives. The company reported $1,374 million in net sales for the last twelve months ending Q2FY25, with significant investments in operational excellence and customer experience to drive growth. The presentation also emphasized Mueller’s commitment to ESG initiatives, including a reduction in emissions intensity and increased use of recycled materials, which have been recognized with an upgraded ESG rating by MSCI.