November 28, 2024
Top 10 Stock Mueller Water Products Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Mueller Water Products Strong Buy

360 METRICS	November 28, 2024
VALUE
VALUE	49
GROWTH
GROWTH	79
SAFETY
SAFETY	58
SENTIMENT
SENTIMENT	85
360° VIEW
360° VIEW	90

ANALYSIS: With an Obermatt 360° View of 90 (better than 90% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Mueller Water Products are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Mueller Water Products. The consolidated Growth Rank has a good rank of 79, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. This means that growth is higher than for 79% of competitors in the same industry. The consolidated Safety Rank at 58 means that the company has a financing structure that is safer than 58% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a good rank of 85, which means that professional investors are more optimistic about the stock than for 85% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 49, meaning that the share price of Mueller Water Products is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 51% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 90, Mueller Water Products is better positioned than 90% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as above-average growth (Growth Rank of 79), a safe financing structure (Safety Rank of 58), and positive professional market sentiment (Sentiment Rank of 85), it is a solid stock investment where growth may be the strongest driver of the investment rationale, also reflected by institutional investors. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of Mueller Water Products compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (79% better than peers). The value rank could be the reverse reflection of that (21%). A Value Rank below that level may be assessed as expensive, a rank above that is still good value. Sometimes market sentiment just reflects the past, sometimes the reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for Mueller Water Products very positive

SENTIMENT METRICS	November 28, 2024
ANALYST OPINION
ANALYST OPINION	41
OPINIONS CHANGE
OPINIONS CHANGE	95
PRO HOLDINGS
PRO HOLDINGS	99
MARKET PULSE
MARKET PULSE	30
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	85

ANALYSIS: With an Obermatt Sentiment Rank of 85 (better than 85% compared with alternatives) for 2024, overall professional sentiment and engagement for the stock Mueller Water Products is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Mueller Water Products. Analyst Opinions are at a rank of 41 (worse than 59% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 95, which means that stock research experts are more positive in their investment recommendations in the company. In other words, they are getting more optimistic of stock investments in Mueller Water Products. More encouragingly, the Professional Investors rank is 99, which means that professional investors hold more stock in this company than in 99% of alternative investment opportunities. Pros tend to favor investing in this company. But Market Pulse is on the lower side with a rank of 30, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 70% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 85 (more positive than 85% compared with investment alternatives), Mueller Water Products has a reputation among professional investors that is significantly higher than that of its competitors. The sentiment signals are mixed for Mueller Water Products. While analysts and the news channels are negative, there is a change in what analysts think. Above-average institutional investors in this company support them. Sentiment signals remain mixed with analysts and news channels pessimistic, though improving, and professional investors above average. ...read more

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Value Strategy: Mueller Water Products Stock Price Value below-average critical

VALUE METRICS	November 28, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	40
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	53
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	40
DIVIDEND YIELD
DIVIDEND YIELD	65
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	49

ANALYSIS: With an Obermatt Value Rank of 49 (worse than 51% compared with alternatives), Mueller Water Products shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Mueller Water Products. Price-to-Profit (also referred to as price-earnings, P/E) is 53 which means that the stock price compared with what market professionals expect for future profits is lower than for 53% of comparable companies, indicating a good value concerning Mueller Water Products's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 40, which means that the stock price is lower as regards to invested capital than for 40% of comparable investments. On the other hand, Price-to-Sales is less favorable than 60% of alternatives (only 40% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 35% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 49, is a hold recommendation based on Mueller Water Products's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. ...read more

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Growth Strategy: Mueller Water Products Growth Momentum high

GROWTH METRICS	November 28, 2024
REVENUE GROWTH
REVENUE GROWTH	59
PROFIT GROWTH
PROFIT GROWTH	74
CAPITAL GROWTH
CAPITAL GROWTH	31
STOCK RETURNS
STOCK RETURNS	93
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79

ANALYSIS: With an Obermatt Growth Rank of 79 (better than 79% compared with alternatives) for 2024, Mueller Water Products shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Mueller Water Products. Sales Growth has a rank of 59 which means that currently, professionals expect the company to grow more than 59% of its competitors. Both Profit Growth, with a rank of 74, and Stock Returns, with a rank of 93, are also above average. But Capital Growth only has a rank of 31, which means that, currently, professionals expect the company to grow its invested capital less than 69% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 79, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. ...read more

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Safety Strategy: Mueller Water Products Debt Financing Safety above-average

SAFETY METRICS	November 28, 2024
LEVERAGE
LEVERAGE	40
REFINANCING
REFINANCING	54
LIQUIDITY
LIQUIDITY	63
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	58

ANALYSIS: With an Obermatt Safety Rank of 58 (better than 58% compared with alternatives), the company Mueller Water Products has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Mueller Water Products is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Mueller Water Products. Refinancing is at 54, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 54% of its competitors. Liquidity is also good at 63, meaning the company generates more profit to service its debt than 63% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 40, which means the company has an above-average debt-to-equity ratio. It has more debt than 60% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 58 (better than 58% compared with alternatives), Mueller Water Products has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Mueller Water Products could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. ...read more

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Combined financial peformance: Mueller Water Products Top Financial Performance

COMBINED PERFORMANCE	November 28, 2024
VALUE
VALUE	49
GROWTH
GROWTH	79
SAFETY
SAFETY	63
COMBINED
COMBINED	82

ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Mueller Water Products (Industrial Machinery, USA) shares have much better financial characteristics than comparable stocks. Shares of Mueller Water Products are low in value (priced high) with a consolidated Value Rank of 49 (worse than 51% of alternatives). But they show above-average growth (Growth Rank of 79) and are safely financed (Safety Rank of 58, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Mueller Water Products's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Mueller Water Products exhibits low value (Obermatt Value Rank of 49), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 79). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 58) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). ...read more

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