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NEW YORK (TheStreet) -- Mueller Water Products (MWA) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MUELLER WATER PRODUCTS INC (MWA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MWA's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 9.4%. 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. During the past fiscal year, MUELLER WATER PRODUCTS INC increased its bottom line by earning $0.34 versus $0.22 in the prior year. This year, the market expects an improvement in earnings ($0.48 versus $0.34).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 94.1% when compared to the same quarter one year prior, rising from $13.50 million to $26.20 million.
- 36.01% 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. Along with this, the net profit margin of 8.16% is above that of the industry average.
- Net operating cash flow has increased to $86.60 million or 22.83% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -16.32%.
- You can view the full analysis from the report here: MWA Ratings Report