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Are Mueller Water Products Inc. (NYSE:MWA)’s Fundamentals Enough to Outperform

Mueller Water Products Inc. (NYSE:MWA) shares fell to a low of $14.385 before closing at $14.40. Intraday shares traded counted 0.33 million, which was 61.74% higher than its 30-day average trading volume of 864.27K. MWA’s previous close was $14.49 while the outstanding shares total 158.40M. The firm has a beta of 1.30, a 12-month trailing P/E ratio of 30.25, and a growth ratio of 3.03. The stock’s Relative Strength Index (RSI) is 48.61, with weekly volatility at 1.21% and ATR at 0.23. The MWA stock’s 52-week price range has touched low of $8.51 and a $15.05 high. The stock traded lower over the last trading session, losing -0.62% on 06/10/21.

Investors have identified the Specialty Industrial Machinery company Mueller Water Products Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.27 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Mueller Water Products Inc. (MWA) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For MWA, the company has in raw cash 228.2 million on their books with 1.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 614.2 million total, with 160.2 million as their total liabilities.

MWA were able to record 32.1 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by 19.3 million. In cash movements, the company had a total of 63.2 million as operating cash flow.

Potential earnings growth for Mueller Water Products Inc. (MWA)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, Mueller Water Products Inc. recorded a total of 267.5 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 3.66% coming in sequential stages and their sales for the 08/05/2021 quarter increasing by 11.25%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 179.1 million trying to sell their products during the last quarter, with the result yielding a gross income of 88.4 million. This allows shareholders to hold on to 158.40M with the recently reported earning now reading 0.13 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (0.14 cents a share).

Having a look at the company’s valuation, the company is expected to record 0.67 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on MWA sounds very interesting.

Is the stock of MWA attractive?

In related news, SVP and CHRO, Helms Todd P sold 7,522 shares of the company’s stock in a transaction that recorded on Mar 09. The sale was performed at an average price of 13.65, for a total value of 102,684. As the sale deal closes, the Director, FRANKLIN SHIRLEY C. now sold 19,543 shares of the company’s stock, valued at 250,182. Also, Director, HANSEN THOMAS J sold 25,974 shares of the company’s stock in a deal that was recorded on Mar 01. The shares were price at an average price of 13.32 per share, with a total market value of 345,852. Following this completion of acquisition, the SVP and CHRO, Helms Todd P now holds 9,884 shares of the company’s stock, valued at 129,925. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.

3 out of 9 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on Mueller Water Products Inc.. 0 analysts has assigned a Sell rating on the MWA stock. The 12-month mean consensus price target for the company’s shares has been set at $15.22.

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