Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Mueller Water Products ( MWA) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Mueller Water Products as such a stock due to the following factors:
- MWA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.0 million.
- MWA has traded 426,751 shares today.
- MWA is down 3% today.
- MWA was up 6.9% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MWA with the Ticky from Trade-Ideas. See the FREE profile for MWA NOW at Trade-Ideas More details on MWA: Mueller Water Products, Inc. manufactures and markets products and services used in the transmission, distribution, and measurement of water primarily in the United States and Canada. The company operates through two segments, Mueller Co. and Anvil. The Mueller Co. The stock currently has a dividend yield of 0.8%. MWA has a PE ratio of 38.0. Currently there are 6 analysts that rate Mueller Water Products a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Mueller Water Products has been 1.2 million shares per day over the past 30 days. Mueller Water has a market cap of $1.3 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.53 and a short float of 0.9% with 0.81 days to cover. Shares are down 4.7% year-to-date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Mueller Water Products as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 19.1%. Since the same quarter one year prior, revenues slightly increased by 4.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MUELLER WATER PRODUCTS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, MUELLER WATER PRODUCTS INC turned its bottom line around by earning $0.22 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings ($0.32 versus $0.22).
- 35.33% is the gross profit margin for MUELLER WATER PRODUCTS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.60% trails the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Machinery industry and the overall market, MUELLER WATER PRODUCTS INC's return on equity is below that of both the industry average and the S&P 500.
- Currently the debt-to-equity ratio of 1.83 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Regardless of the company's weak debt-to-equity ratio, MWA has managed to keep a strong quick ratio of 1.65, which demonstrates the ability to cover short-term cash needs.
- You can view the full Mueller Water Products Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.