Mueller Water Products (MWA) AI Stock Analysis

• Market Cap: $3.74B
• Dividend Yield: 1.13%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.16
• Revenue Growth: 8.75%
• EPS Growth: 64.82%
• Country: US
• Employees: 3,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.38
• Shares Outstanding: 156,293,520
• 10 Day Avg. Volume: 1,484,683
• 30 Day Avg. Volume: 1,179,261
• PEG Ratio: 0.84
• Price to Book (P/B): 4.18
• Price to Sales (P/S): 2.57
• P/FCF Ratio: 17.68
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 7.75
• Enterprise Value/Ebitda: 12.45
• 1Y Price Target: $27.20
• Price Target Upside: 13.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $29.00 ▲(21.09% Upside)

Mueller Water Products' strong financial performance and positive earnings call sentiment are the most significant factors driving the score. While technical indicators and valuation suggest caution, the company's robust operational execution and strategic initiatives provide a solid foundation for future growth.

Positive Factors

Revenue Growth

Mueller Water Products' consistent revenue growth and improved margins demonstrate its strong market position and operational efficiency, which are crucial for long-term success in the water infrastructure industry.

Operational Efficiency

The closure of outdated facilities and focus on manufacturing efficiencies enhance cost savings and operational effectiveness, supporting sustainable profitability and competitive advantage.

Sustainability Initiatives

Early achievement of sustainability targets highlights Mueller's commitment to innovation and environmental responsibility, strengthening its reputation and aligning with long-term industry trends.

Negative Factors

Tariff Impact

Newly enacted tariffs increase production costs, potentially squeezing margins and affecting competitive pricing, posing a risk to long-term profitability if not mitigated.

Foreign Currency Headwinds

Currency fluctuations, particularly with the Israeli shekel, can negatively impact financial results, complicating international operations and financial planning over the medium term.

Residential Market Slowdown

A slowdown in residential construction could reduce demand for Mueller's products, impacting revenue growth and necessitating strategic adjustments to mitigate long-term effects.

Mueller Water Products Business Overview & Revenue Model

Company Description

Mueller Water Products Inc. manufactures and markets products and services used in the transmission, distribution, and measurement of water in North America and internationally. Its products and services are used by municipalities, and the residential and non-residential construction industries. It operates through two segments, Infrastructure and Technologies. The company's Infrastructure segment manufactures and sells valves for water and gas systems, including iron gate, butterfly, tapping, check, knife, plug, automatic control, and ball valves; and dry-barrel and wet-barrel fire hydrants and service brass products, as well as a line of pipe repair products, such as clamps and couplings used to repair leaks. This segment offers its products under Canada Valve, Centurion, Ez-Max, Hydro Gate, Hydro-Guard, HYMAX, HYMAX VERSA, Jones, Krausz, Milliken, Mueller, Pratt, Pratt Industrial, Repamax, Repaflex, and Singer brands. Its Technologies segment offers residential and commercial water metering, water leak detection and pipe condition assessment products, systems, and services. It offers products under Echologics, Echoshore, ePulse, Hersey, LeakFinderRT, LeakFinderST, LeakListener, LeakTuner, Mi.Echo, Mi.Data, Mi.Hydrant, Mi.Net, Mueller Systems, and Sentryx brands. The company was founded in 1857 and is headquartered in Atlanta, Georgia.

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. The decline in free cash flow growth is a potential risk, but 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	1.43B	1.31B	1.28B	1.25B	1.11B	964.10M
Gross Profit	520.80M	459.00M	379.50M	364.30M	358.50M	328.20M
EBITDA	324.30M	250.10M	188.90M	175.70M	177.20M	177.30M
Net Income	191.70M	115.90M	85.50M	76.60M	70.40M	72.00M
Balance Sheet
Total Assets	1.84B	1.64B	1.50B	1.50B	1.52B	1.40B
Cash, Cash Equivalents and Short-Term Investments	431.50M	309.90M	160.30M	146.50M	227.50M	208.90M
Total Debt	451.60M	477.50M	472.10M	473.70M	475.50M	474.90M
Total Liabilities	857.20M	825.80M	793.50M	828.80M	823.10M	754.30M
Stockholders Equity	981.70M	810.10M	711.50M	669.30M	694.90M	640.70M
Cash Flow
Free Cash Flow	201.00M	191.40M	61.40M	-2.40M	94.00M	72.60M
Operating Cash Flow	219.30M	238.80M	109.00M	52.30M	156.70M	140.30M
Investing Cash Flow	-18.20M	-47.20M	-42.10M	-54.90M	-81.70M	-67.50M
Financing Cash Flow	-47.20M	-46.00M	-48.80M	-72.00M	-58.80M	-41.40M

Mueller Water Products Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MWA, the sentiment is Negative. The current price of 23.95 is below the 20-day moving average (MA) of 25.38, below the 50-day MA of 25.42, and below the 200-day MA of 25.20, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 32.97 is Neutral, neither overbought nor oversold. The STOCH value of 15.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MWA.

Mueller Water Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLS	79 Outperform	$8.80B	20.14	20.97%	1.21%	3.19%	69.89%
MWA	75 Outperform	$3.74B	19.61	21.40%	1.13%	8.75%	64.82%
WTS	73 Outperform	$9.11B	28.20	17.81%	0.70%	4.18%	16.05%
MIR	68 Neutral	$6.97B	233.02	1.58%	―	7.81%	―
MIDD	64 Neutral	$6.21B	―	-6.20%	―	0.27%	-159.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	59 Neutral	$9.11B	29.56	12.38%	―	5.52%	9.03%

Mueller Water Products Corporate Events

Mueller Water Products Highlights Q3 FY25 Financials

Mueller Water Products released an updated investor presentation highlighting their financial performance and strategic priorities. The company reported net sales of $1,397 million and adjusted EBITDA of $306.9 million for the last twelve months ending Q3 FY25. They emphasized their commitment to operational excellence, customer experience, and sustainability, with significant achievements in water loss savings and waste reduction. These efforts are aimed at supporting future growth and enhancing their market position.

Mueller Water Products Appoints New Chief Accounting Officer

On August 15, 2025, Mueller Water Products appointed Richelle R. Feyerherm as the new Chief Accounting Officer, replacing Suzanne G. Smith. Ms. Feyerherm, who has been with the company since 2019, will receive a compensation package including a base salary, bonus, and restricted stock units. The transition is supported by a consulting agreement with Ms. Smith to ensure continuity.