Mueller Water Operating Margin vs. Return On Asset

MWA Stock  USD 24.97  0.15  0.60%   
Considering Mueller Water's profitability and operating efficiency indicators, Mueller Water Products is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Mueller Water's ability to earn profits and add value for shareholders.

Mueller Water Operating Profit Margin

0.15

At present, Mueller Water's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 2.84, whereas Days Sales Outstanding is forecasted to decline to 49.76. At present, Mueller Water's Operating Income is projected to increase significantly based on the last few years of reporting. The current year's Income Before Tax is expected to grow to about 171.6 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (58.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.3491
Way Down
Slightly volatile
Operating Profit Margin0.150.1382
Significantly Up
Slightly volatile
Pretax Profit Margin0.130.1243
Sufficiently Up
Slightly volatile
For Mueller Water profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mueller Water to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Mueller Water Products utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mueller Water's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mueller Water Products over time as well as its relative position and ranking within its peers.
  

Mueller Water's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mueller Water. If investors know Mueller will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mueller Water listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.45)
Dividend Share
0.256
Earnings Share
0.74
Revenue Per Share
8.433
Quarterly Revenue Growth
0.155
The market value of Mueller Water Products is measured differently than its book value, which is the value of Mueller that is recorded on the company's balance sheet. Investors also form their own opinion of Mueller Water's value that differs from its market value or its book value, called intrinsic value, which is Mueller Water's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mueller Water's market value can be influenced by many factors that don't directly affect Mueller Water's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mueller Water's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mueller Water is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mueller Water's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Mueller Water Products Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Mueller Water's current stock value. Our valuation model uses many indicators to compare Mueller Water value to that of its competitors to determine the firm's financial worth.
Mueller Water Products is rated below average in operating margin category among its peers. It is rated below average in return on asset category among its peers reporting about  0.62  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Mueller Water Products is roughly  1.61 . At present, Mueller Water's Operating Profit Margin is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Mueller Water's earnings, one of the primary drivers of an investment's value.

Mueller Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Mueller Water

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.13 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Mueller Water

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0835
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Mueller Return On Asset Comparison

Mueller Water is currently under evaluation in return on asset category among its peers.

Mueller Water Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Mueller Water, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Mueller Water will eventually generate negative long term returns. The profitability progress is the general direction of Mueller Water's change in net profit over the period of time. It can combine multiple indicators of Mueller Water, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-56 M-58.8 M
Operating Income181.7 M190.8 M
Income Before Tax163.4 M171.6 M
Net Income Applicable To Common Shares98.3 M103.2 M
Net Income115.9 M121.7 M
Income Tax Expense47.5 M49.9 M
Total Other Income Expense Net-18.3 M-19.2 M
Net Income From Continuing Ops98.3 M59.7 M
Non Operating Income Net Other-15 M-14.3 M
Interest Income4.3 MM
Net Interest Income-16.9 M-17.8 M
Change To Netincome-3.8 M-3.6 M
Net Income Per Share 0.74  0.78 
Income Quality 2.06  2.44 
Net Income Per E B T 0.71  0.74 

Mueller Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Mueller Water. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Mueller Water position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Mueller Water's important profitability drivers and their relationship over time.

Use Mueller Water in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Mueller Water position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mueller Water will appreciate offsetting losses from the drop in the long position's value.

Mueller Water Pair Trading

Mueller Water Products Pair Trading Analysis

The ability to find closely correlated positions to Mueller Water could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Mueller Water when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Mueller Water - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Mueller Water Products to buy it.
The correlation of Mueller Water is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Mueller Water moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mueller Water Products moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Mueller Water can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Mueller Water position

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When determining whether Mueller Water Products offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Mueller Water's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Mueller Water Products Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Mueller Water Products Stock:
Check out Correlation Analysis.
You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
To fully project Mueller Water's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Mueller Water Products at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Mueller Water's income statement, its balance sheet, and the statement of cash flows.
Potential Mueller Water investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Mueller Water investors may work on each financial statement separately, they are all related. The changes in Mueller Water's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Mueller Water's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.