Mueller Water Products, Inc. (MWA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+14.5%

$27.35

vs $23.89 price

Levered DCF

$25.87

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.36

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	20.75×	29.32×	23.05×	20.96×	34.59×	22.59×	28.1×	16.97×
P/B	4.07×	4.18×	2.79×	2.42×	3.47×	2.56×	3.01×	3.19×
P/S	2.79×	2.57×	1.55×	1.3×	2.17×	1.7×	1.83×	1.96×
EV / EBITDA	13.04×	14.2×	12.14×	11.06×	15×	10.75×	12.99×	11.36×
Gross margin	36.1%	34.9%	29.7%	29.2%	32.3%	34.0%	33.2%	31.6%
Operating margin	18.2%	13.8%	10.0%	8.9%	11.9%	12.1%	12.8%	13.3%
Net margin	13.4%	8.8%	6.7%	6.1%	6.3%	7.5%	6.6%	11.5%
Current ratio	3.54×	3.33×	3.23×	2.82×	2.97×	3.75×	3.18×	4.1×
Debt / equity	0.46×	0.59×	0.66×	0.71×	0.68×	0.74×	0.76×	0.79×
Interest coverage	13.03×	8.45×	6.92×	6.34×	5.53×	4.39×	5.33×	4.93×
Dividend yield	1.0%	1.2%	1.9%	2.3%	1.4%	2.0%	1.8%	1.7%
Payout ratio	21.9%	34.4%	44.6%	47.7%	49.4%	46.0%	50.2%	28.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	19.5%	14.3%	12.0%	11.4%	10.1%	11.2%	10.8%	18.7%
Return on invested capital	12.7%	9.3%	7.7%	6.9%	7.5%	7.2%	8.3%	10.8%
Return on assets	10.4%	7.1%	5.7%	5.1%	4.6%	5.2%	4.8%	8.2%
Free cash flow yield	4.3%	5.7%	3.1%	-0.1%	3.9%	4.4%	0.3%	4.3%
Earnings yield	4.8%	3.4%	4.3%	4.7%	2.9%	4.4%	3.6%	5.9%
Enterprise value	$4B	$3.6B	$2.3B	$1.9B	$2.7B	$1.9B	$2B	$1.9B
Net debt / EBITDA	0.07×	0.67×	1.65×	1.86×	1.4×	1.5×	1.71×	0.59×
Cash conversion cycle (days)	141	146	146	134	120	131	128	104