Mueller Industries: Continuing To Impress

(9min)

Summary

  • Mueller Industries has seen strong margin gains post-pandemic, with cash flow generation remaining robust despite a partial normalization of margins and recent decline in sales.
  • The company holds leadership positions in core markets like copper pipes and tubes, as M&A adds further capabilities to the business.
  • A substantial acquisition of Nehring Electrical Works and Elkhart is expected to provide a meaningful growth driver to the business.
  • Shares have shown significant momentum, but caution is advised due to high current valuations; Mueller deserves a spot on the watch list for potential dips.
  • Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More »

Ends Of Various Sized Copper Pipe Or Tube For Plumbing

Difydave

In May, I believed that Mueller Industries (NYSE:MLI) was an interesting producer which displayed real momentum. In a post-pandemic world, the company has seen margins explode, attributed to tight supply chains, inflation and secular growth trends. My fear was that margins would normalize, which could

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This article was written by

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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