Mueller Industries: A Wonderful Company At A Fair Price
Summary
- Mueller Industries has delivered over 487% TSR in five years, significantly outperforming the SPY, and remains attractively valued with strong profitability and returns.
- Revenues grew from $2.43B in 2019 to $3.4B TTM, with NOPAT compounding at 32% annually, boosting ROIC from 8.9% to 25%.
- Management has created $1.77B in shareholder value since 2019, but recent declines in NOPAT margins and FCF warrant close monitoring.
- Despite operational cooling, Mueller Industries' economic book value per share has risen to $52.95, making it attractively priced with a PEBV of 1.36.
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