Mueller Industries: Some FCF Catalysts, But Small Margin Of Safety

Nov. 16, 2024 3:50 AM ETMueller Industries, Inc. (MLI) Stock
(14min)

Summary

  • Mueller Industries' recent acquisitions and potential future M&A activity could drive significant revenue and free cash flow growth.
  • A decrease in taxes and environmental regulations under the new administration could benefit MLI's financial performance.
  • Risks include work stoppages, union negotiations, and the strengthening U.S. dollar affecting international sales and competitiveness.
  • I sold my position due to insufficient margin of safety and MLI's lack of stock repurchases.

Aluminium processing plant

Ozgur Donmaz

Mueller Industries, Inc. (NYSE:MLI) recently delivered a beneficial quarterly report that included significant revenue growth coming from the acquisitions of Nehring and Elkhart. In my view, given previous activity in the M&A market, we could expect further inorganic growth

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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.

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