Mueller Industries Inc. Common Stock (MLI)

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $499 million in annual free cash flow (3.3% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 28.3% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 18.2 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($72) with negative 89% margin of safety—limited downside protection

AI Analysis

Mueller Industries Inc. Common Stock is a mid-cap industrials company valued at $15.1 billion. The business generates $4.4 billion in annual revenue with a 5.5% net margin and $499 million in free cash flow. From a quality standpoint, Mueller shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 18.2 confirms fortress-level solvency. On valuation, the stock is reasonably priced at 17.8x earnings, with trades above its Graham Number with a negative 89% margin. Growth dynamics show revenue growing at 19.3% and profit growth of 51.8%. The 1.0% dividend yield adds an income component for patient holders. Our composite FairStock Score of 77/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Mueller's 19% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $499 million in annual free cash flow (3.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer