📊 MWA Key Takeaways
Is Mueller Water Products, Inc. (MWA) a Good Investment?
Mueller Water Products demonstrates strong profitability metrics (37.6% gross margin, 19.5% operating margin) and an exceptionally robust balance sheet with 4.57x current ratio and 0.42x debt-to-equity, indicating excellent financial stability. However, the extraordinary 21,762% YoY revenue growth raises sustainability concerns, and critical cash conversion weakness—operating cash flow of only $48.4M on $102.3M net income (47% conversion) and FCF of just $16.5M—suggests significant working capital absorption or earnings quality issues that require clarification.
Mueller Water Products demonstrates solid fundamentals with healthy margins, strong liquidity, and consistent free cash flow generation, suggesting resilient core operations. Earnings growth is robust and cash balances largely offset debt, providing flexibility for investment and downturns. However, modest ROE/ROA and relatively thin interest coverage temper conviction, making sustained cash conversion and margin stability key to the outlook.
Why Buy Mueller Water Products, Inc. Stock? MWA Key Strengths
- Exceptional liquidity position with 4.57x current ratio and $421M cash balance
- Healthy profitability margins (14.6% net margin, 19.5% operating margin, 37.6% gross margin)
- Conservative capital structure with 0.42x debt-to-equity and strong 6.9x interest coverage
- Strong liquidity and cash position (current 4.0x, quick 2.55x)
- Healthy profitability (37.6% gross, 17.8% operating, 13.6% net)
- Solid free cash flow generation (13.8% FCF margin) with moderate leverage (0.44x D/E)
MWA Stock Risks: Mueller Water Products, Inc. Investment Risks
- Suspicious 21,762% YoY revenue growth indicating potential acquisition or accounting anomaly with unclear sustainability
- Poor cash conversion: only $16.5M free cash flow on $102.3M net income (2.3% FCF margin vs 14.6% net margin)
- Weak capital returns with 9.6% ROE and 5.4% ROA despite strong profitability margins
- Interest coverage is only 2.8x, sensitive to rate changes or EBIT dips
- Low ROE/ROA indicate capital inefficiency or underutilized assets
- Extraordinary revenue YoY growth suggests data volatility or non-organic effects
Key Metrics to Watch
- Operating cash flow trend and organic revenue growth (excluding acquisition impacts)
- Working capital management and cash conversion cycle
- Return on equity and return on assets trajectory
- Interest coverage (EBIT/interest)
- FCF conversion (OCF and FCF vs revenue)
Mueller Water Products, Inc. (MWA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.3% FCF margin may limit capital allocation flexibility. Strong liquidity with a 4.57x current ratio provides a solid financial cushion.
MWA Profit Margin, ROE & Profitability Analysis
MWA vs Materials Sector: How Mueller Water Products, Inc. Compares
How Mueller Water Products, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Mueller Water Products, Inc. Stock Overvalued? MWA Valuation Analysis 2026
Based on fundamental analysis, Mueller Water Products, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Mueller Water Products, Inc. Balance Sheet: MWA Debt, Cash & Liquidity
MWA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Mueller Water Products, Inc.'s revenue has grown significantly by 48% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.55 reflects profitable operations.
MWA Revenue Growth, EPS Growth & YoY Performance
MWA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $364.3M | $35.3M | $0.33 |
| Q1 2026 | $304.3M | $35.3M | $0.22 |
| Q3 2025 | $356.7M | $14.3M | $0.30 |
| Q2 2025 | $353.4M | $14.3M | $0.28 |
| Q1 2025 | $256.4M | $14.3M | $0.09 |
| Q3 2024 | $326.6M | $14.3M | $0.16 |
| Q2 2024 | $332.9M | $14.3M | $0.14 |
| Q1 2024 | $256.4M | $14.3M | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Mueller Water Products, Inc. Dividends, Buybacks & Capital Allocation
MWA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Mueller Water Products, Inc. (CIK: 0001350593)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MWA
What is the AI rating for MWA?
Mueller Water Products, Inc. (MWA) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MWA's key strengths?
Claude: Exceptional liquidity position with 4.57x current ratio and $421M cash balance. Healthy profitability margins (14.6% net margin, 19.5% operating margin, 37.6% gross margin). ChatGPT: Strong liquidity and cash position (current 4.0x, quick 2.55x). Healthy profitability (37.6% gross, 17.8% operating, 13.6% net).
What are the risks of investing in MWA?
Claude: Suspicious 21,762% YoY revenue growth indicating potential acquisition or accounting anomaly with unclear sustainability. Poor cash conversion: only $16.5M free cash flow on $102.3M net income (2.3% FCF margin vs 14.6% net margin). ChatGPT: Interest coverage is only 2.8x, sensitive to rate changes or EBIT dips. Low ROE/ROA indicate capital inefficiency or underutilized assets.
What is MWA's revenue and growth?
Mueller Water Products, Inc. reported revenue of $702.6M.
Does MWA pay dividends?
Mueller Water Products, Inc. pays dividends, with $21.9M distributed to shareholders in the trailing twelve months.
Where can I find MWA SEC filings?
Official SEC filings for Mueller Water Products, Inc. (CIK: 0001350593) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MWA's EPS?
Mueller Water Products, Inc. has a diluted EPS of $0.65.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MWA a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Mueller Water Products, Inc. has a BUY rating with 66% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is MWA stock overvalued or undervalued?
Valuation metrics for MWA: ROE of 9.6% (sector avg: 14%), net margin of 14.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy MWA stock in 2026?
Our dual AI analysis gives Mueller Water Products, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MWA's free cash flow?
Mueller Water Products, Inc.'s operating cash flow is $48.4M, with capital expenditures of $31.9M. FCF margin is 2.3%.
How does MWA compare to other Materials stocks?
Vs Materials sector averages: Net margin 14.6% (avg: 10%), ROE 9.6% (avg: 14%), current ratio 4.57 (avg: 1.6).