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Relative valuation derived from Materials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
24.4%
Sector: 3.3%
Dividend Analysis audit
GROWTH
0.94%
Trailing Yield
$0.94
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
16%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, MUELLER INDUSTRIES INC (MLI) receives a "Hold" rating with a composite score of 52.0/100, ranked #725 out of 4446 stocks. Key factor scores: Quality 50/100, Value 67/100, Momentum 57/100. This is quantitative analysis only — not investment advice.
MUELLER INDUSTRIES INC (MLI) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does MUELLER INDUSTRIES INC Do?
Mueller Industries, Inc. manufactures and sells copper, brass, aluminum, and plastic products in the United States, the United Kingdom, Canada, South Korea, the Middle East, China, and Mexico. It operates through three segments: Piping Systems, Industrial Metals, and Climate. The Piping Systems segment offers copper tubes, fittings, line sets, and pipe nipples; PEX plumbing and radiant systems; and plumbing-related fittings and plastic injection tooling. It also resells steel pipes, brass and plastic plumbing valves, malleable iron fittings and faucets, and plumbing specialties; and supplies water tubes. This segment sells its products to wholesalers in the plumbing and refrigeration markets, distributors to the manufactured housing and recreational vehicle industries, building material retailers, and air-conditioning original equipment manufacturers (OEMs). The Industrial Metals segment manufactures brass, bronze, and copper alloy rods; plumbing brass, valves, and fittings; cold-form aluminum and copper products; machining of aluminum, steel, brass, and cast iron impacts and castings; brass and aluminum forgings; brass, aluminum, and stainless-steel valves; fluid control solutions; and gas train assembles to OEMs in the industrial, construction, HVAC, plumbing, and refrigeration markets. The Climate segment offers valves, protection devices, and brass fittings for various OEMs in the commercial HVAC and refrigeration markets; high-pressure components and accessories for the air-conditioning and refrigeration markets; coaxial heat exchangers and twisted tubes for the HVAC, geothermal, refrigeration, swimming pool heat pump, marine, ice machine, commercial boiler, and heat reclamation markets; insulated HVAC flexible duct systems; and brazed manifolds, headers, and distributor assemblies. The company was founded in 1917 and is headquartered in Collierville, Tennessee. MUELLER INDUSTRIES INC (MLI) is classified as a large-cap stock in the Materials sector, specifically within the Steel Works industry. The company is led by CEO Gregory L. Christopher and employs approximately 5,140 people, headquartered in Memphis, Tennessee. With a market capitalization of $12.4B, MLI is one of the prominent companies in the Materials sector.
MUELLER INDUSTRIES INC (MLI) Stock Rating — Hold (April 2026)
As of April 2026, MUELLER INDUSTRIES INC receives a Hold rating with a composite score of 52.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.MLI ranks #725 out of 4,446 stocks in our coverage universe. Within the Materials sector, MUELLER INDUSTRIES INC ranks #44 of 284 stocks, placing it in the top quartile of its Materials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MLI Stock Price and 52-Week Range
MUELLER INDUSTRIES INC (MLI) currently trades at $121.16. The stock gained $0.29 (0.2%) in the most recent trading session. The 52-week high for MLI is $139.29, which means the stock is currently trading -13.0% from its annual peak. The 52-week low is $66.84, putting the stock 81.3% above its annual trough. Recent trading volume was 441K shares, suggesting relatively thin trading activity.
Is MLI Overvalued or Undervalued? — Valuation Analysis
MUELLER INDUSTRIES INC (MLI) carries a value factor score of 67/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 16.58x, compared to the Materials sector average of 26.50x — a discount of 37%. The price-to-book ratio stands at 4.05x, versus the sector average of 2.83x. The price-to-sales ratio is 3.11x, compared to 0.74x for the average Materials stock. On an enterprise value basis, MLI trades at 13.19x EV/EBITDA, versus 6.01x for the sector. The EV/EBIT multiple is 12.42x.
Overall, MLI's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
MUELLER INDUSTRIES INC Profitability — ROE, Margins, and Quality Score
MUELLER INDUSTRIES INC (MLI) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 24.4%, compared to the Materials sector average of 3.3%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 21.2% versus the sector average of 0.6%.
On a margin basis, MUELLER INDUSTRIES INC reports gross margins of 27.6%, compared to 29.8% for the sector. The operating margin is 23.4% (sector: 6.0%). Net profit margin stands at 18.6%, versus 3.0% for the average Materials stock. Revenue growth is running at 8.0% on a trailing basis, compared to 1.8% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
MLI Debt, Balance Sheet, and Financial Health
MUELLER INDUSTRIES INC has a debt-to-equity ratio of 15.0%, compared to the Materials sector average of 41.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 5.92x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $1.26B.
MLI has a beta of 0.97, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for MUELLER INDUSTRIES INC is 74/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
MUELLER INDUSTRIES INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, MUELLER INDUSTRIES INC reported revenue of $4.21B and earnings per share (EPS) of $6.99. Net income for the quarter was $790M. Gross margin was 27.6%. Operating income came in at $993M.
In FY 2025, MUELLER INDUSTRIES INC reported revenue of $4.18B and earnings per share (EPS) of $6.99. Net income for the quarter was $774M. Revenue grew 10.9% year-over-year compared to FY 2024. Operating income came in at $959M.
In Q3 2025, MUELLER INDUSTRIES INC reported revenue of $1.08B and earnings per share (EPS) of $1.91. Net income for the quarter was $210M. Revenue grew 8.0% year-over-year compared to Q3 2024. Operating income came in at $276M.
In Q2 2025, MUELLER INDUSTRIES INC reported revenue of $1.14B and earnings per share (EPS) of $2.26. Net income for the quarter was $248M. Revenue grew 14.1% year-over-year compared to Q2 2024. Operating income came in at $304M.
Over the past 8 quarters, MUELLER INDUSTRIES INC has demonstrated a growth trajectory, with revenue expanding from $998M to $4.21B. Investors analyzing MLI stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MLI Dividend Yield and Income Analysis
MUELLER INDUSTRIES INC (MLI) currently pays a dividend yield of 0.9%. At this yield, a $10,000 investment in MLI stock would generate approximately $$94.00 in annual dividend income. This compares to the Materials sector average dividend yield of 0.5%, meaning MLI offers above-average income for its sector. With a net margin of 18.6%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
MLI Momentum and Technical Analysis Profile
MUELLER INDUSTRIES INC (MLI) has a momentum factor score of 57/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 22/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MLI vs Competitors — Materials Sector Ranking and Peer Comparison
Comparing MLI against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MLI vs S&P 500 (SPY) comparison to assess how MUELLER INDUSTRIES INC stacks up against the broader market across all factor dimensions.
MLI Next Earnings Date
No upcoming earnings date has been announced for MUELLER INDUSTRIES INC (MLI) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MLI? — Investment Thesis Summary
MUELLER INDUSTRIES INC presents a balanced picture with arguments on both sides. The value score of 67/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 74/100) reduces downside risk.
In summary, MUELLER INDUSTRIES INC (MLI) earns a Hold rating with a composite score of 52.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MLI stock.
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Institutional Research Dossier
MUELLER INDUSTRIES INC (MLI) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Mueller Industries (MLI). The company's strong financial performance, characterized by robust profitability metrics and a debt-free balance sheet, is tempered by concerns regarding the cyclical nature of its end markets and the potential for margin compression as raw material costs fluctuate. While MLI exhibits attractive valuation multiples compared to its sector, the sustainability of its current high levels of profitability warrants caution, justifying a neutral stance.
MLI's diversified product portfolio across piping systems, industrial metals, and climate solutions provides some resilience, but the company's reliance on construction and HVAC markets exposes it to macroeconomic headwinds. The current valuation appears to reflect the inherent cyclicality and the potential for earnings volatility, making a Hold rating appropriate until greater clarity emerges regarding the long-term sustainability of its performance.
Business Strategy & Overview
Mueller Industries operates as a manufacturer and distributor of a diverse range of metal and plastic products, serving the construction, HVAC, and industrial sectors. The company's business is structured around three key segments: Piping Systems, Industrial Metals, and Climate. This diversification allows MLI to capture value across different stages of the construction and industrial supply chains, mitigating risk associated with any single end market.
The Piping Systems segment focuses on the production and distribution of copper tubes, fittings, and related products, primarily targeting the plumbing and refrigeration markets. This segment benefits from the essential nature of plumbing infrastructure and the ongoing demand for residential and commercial construction. The Industrial Metals segment manufactures brass, bronze, and copper alloy rods, as well as various fabricated metal components for industrial applications. This segment caters to OEMs in the industrial, construction, HVAC, plumbing, and refrigeration markets, providing a stable revenue stream through long-term supply agreements.
The Climate segment offers valves, protection devices, and heat exchangers for HVAC and refrigeration OEMs. This segment is driven by the increasing demand for energy-efficient HVAC systems and the growing adoption of heat pump technology. MLI's strategic focus on these segments allows it to capitalize on the secular trends of infrastructure development, industrial automation, and energy efficiency.
MLI's strategic positioning involves maintaining a vertically integrated manufacturing process, which provides greater control over costs and supply chain disruptions. The company also emphasizes product innovation and customer service to differentiate itself from competitors. Furthermore, MLI has historically pursued strategic acquisitions to expand its product portfolio and geographic reach. The company's focus on operational efficiency and cost management has contributed to its strong profitability.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
8.0%
Sector: 1.8%
+359% VS SCTR
Economic Moat Analysis
Mueller Industries possesses a Narrow economic moat, primarily derived from cost advantages and, to a lesser extent, switching costs. The company's vertically integrated manufacturing operations enable it to achieve lower production costs compared to competitors who rely on external suppliers. This cost advantage allows MLI to offer competitive pricing while maintaining healthy profit margins.
The company's established relationships with key customers in the construction, HVAC, and industrial sectors create some degree of switching costs. These customers have invested time and resources in integrating MLI's products into their own manufacturing processes, making it less likely for them to switch to alternative suppliers without incurring significant costs or disruptions. However, these switching costs are not insurmountable, as customers can and do switch suppliers based on price and availability.
MLI's brand reputation for quality and reliability also contributes to its narrow moat. The company has a long history of providing high-quality products and services, which has earned it the trust of its customers. This reputation provides a competitive edge in the market, as customers are willing to pay a premium for MLI's products due to their perceived reliability and performance.
However, the company's moat is not particularly wide due to the commoditized nature of some of its products and the presence of numerous competitors in the market. While MLI has a cost advantage, it is not insurmountable, and competitors can potentially erode this advantage through their own operational efficiencies or technological innovations. Furthermore, the cyclical nature of the construction and HVAC markets can impact MLI's profitability, making it difficult to sustain its competitive advantage during economic downturns. Therefore, a narrow moat rating is appropriate, reflecting a moderate level of sustainable competitive advantage.
Financial Health & Profitability
Mueller Industries exhibits strong financial health, characterized by robust profitability, a pristine balance sheet, and consistent cash flow generation. The company's revenue has grown steadily over the past few years, driven by increased demand in its key end markets and strategic acquisitions. The TTM revenue stands at $4.18 billion, reflecting an 8.0% growth compared to the sector average of 1.5%. This outperformance indicates MLI's ability to capture market share and capitalize on favorable industry trends.
MLI's profitability metrics are particularly impressive. The company's gross margin of 27.6% is slightly below the sector average of 30.2%, but its operating margin of 23.4% and net margin of 18.6% significantly exceed the sector averages of 6.0% and 3.0%, respectively. This superior profitability is a testament to MLI's efficient operations, cost management, and value-added product offerings. The company's ROE of 24.4% is also significantly higher than the sector average of 2.7%, indicating its ability to generate strong returns on equity.
MLI's balance sheet is exceptionally strong, with total cash of $1.26 billion and no debt. This debt-free status provides the company with significant financial flexibility to pursue strategic acquisitions, invest in organic growth initiatives, and return capital to shareholders. The company's current ratio of 5.92 indicates its ability to meet its short-term obligations with ease.
The quarterly financial history reveals a consistent trend of strong revenue and earnings growth. While gross margin data is not available for all quarters, the operating margin has remained consistently above 20%, demonstrating MLI's ability to maintain its profitability even in the face of fluctuating raw material costs and economic uncertainty. The company's strong financial health provides a solid foundation for future growth and value creation.
Valuation Assessment
Mueller Industries' valuation appears attractive relative to its sector, but a deeper analysis is warranted to assess its true value. The company's P/E ratio of 15.4x is significantly lower than the sector average of 26.1x, suggesting that the stock may be undervalued. Similarly, its EV/EBITDA ratio of 3.1x is substantially lower than the sector average of 5.2x, further supporting the notion that MLI is trading at a discount.
However, it is important to consider the cyclical nature of MLI's business and the potential for earnings volatility. The company's strong financial performance in recent years has been driven by favorable macroeconomic conditions and robust demand in its key end markets. As these conditions normalize, MLI's earnings may decline, which could impact its valuation. The current valuation multiples may reflect investor expectations of a future slowdown in growth.
The company's free cash flow yield, derived from a market cap of $11.96B and FCF of $645.16M, is approximately 5.4%, which is reasonable but not exceptionally high. This suggests that the stock is not significantly undervalued based on its cash flow generation. A more comprehensive valuation analysis would require a discounted cash flow (DCF) model to estimate the intrinsic value of the stock, taking into account its future growth prospects, profitability, and risk profile.
Given the potential for earnings volatility and the cyclical nature of the business, a conservative valuation approach is warranted. While MLI's current valuation multiples appear attractive, they may not fully reflect the risks associated with the business. Therefore, a Hold rating is appropriate until greater clarity emerges regarding the long-term sustainability of its performance and the potential for future earnings growth.
Risk & Uncertainty
Mueller Industries faces several risks that could impact its financial performance and valuation. One of the primary risks is the cyclical nature of its end markets, particularly construction and HVAC. A slowdown in these sectors could lead to a decline in demand for MLI's products, resulting in lower revenue and earnings. Economic downturns, rising interest rates, and changes in government policies can all negatively impact the construction and HVAC markets.
Another risk is the fluctuation in raw material costs, particularly copper, brass, and aluminum. These materials are essential inputs for MLI's manufacturing processes, and significant increases in their prices could erode the company's profit margins. While MLI attempts to mitigate this risk through hedging strategies and pricing adjustments, it may not always be able to fully offset the impact of rising raw material costs.
Competition is also a significant risk for MLI. The company operates in a competitive industry with numerous players, including both large multinational corporations and smaller regional companies. Increased competition could lead to price wars and reduced market share, negatively impacting MLI's profitability. The company must continuously innovate and differentiate its products to maintain its competitive edge.
A potential risk lies in the company's acquisition strategy. While acquisitions can provide growth opportunities, they also carry integration risks. If MLI is unable to successfully integrate acquired companies, it could experience operational inefficiencies and financial losses. Furthermore, acquisitions can increase the company's debt burden, which could strain its financial resources.
Bulls Say / Bears Say
The Bull Case
BULL VIEWMueller Industries' strong balance sheet with zero debt provides significant financial flexibility for strategic acquisitions and shareholder returns.
BULL VIEWThe company's diversified product portfolio and exposure to growing markets like energy-efficient HVAC systems will drive sustainable revenue growth.
BULL VIEWMLI's superior operating margins compared to its peers demonstrate its operational efficiency and pricing power, justifying a premium valuation.
The Bear Case
BEAR VIEWMueller Industries' reliance on cyclical end markets like construction and HVAC makes it vulnerable to economic downturns and reduced demand.
BEAR VIEWFluctuations in raw material costs, particularly copper, could significantly erode the company's profit margins despite hedging efforts.
BEAR VIEWThe company's recent strong performance may not be sustainable, and its valuation does not fully reflect the inherent risks associated with its business.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MLI and 4,400+ other equities.
MUELLER INDUSTRIES INC exhibits a 111% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
21.2%
Sector: 0.6%
Gross Margin
Pricing power and cost efficiency
27.6%
Sector: 29.8%
Operating Margin
Core business profitability
23.4%
Sector: 6.0%
Net Margin
Bottom-line profitability
18.6%
Sector: 3.0%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.49%
Yield Delta+92%
Income Projection audit
A $10,000 investment would generate approximately $94 annually in dividends at the current trailing rate.
