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Is this Large Market Cap Stock target price reasonable for Mueller Water Products, Inc. (NYSE:MWA)?

The company in question is, Mueller Water Products, Inc. (NYSE:MWA) currently with a stock price of 12.38 (0.16% today). The market cap for Mueller Water Products, Inc. is 2060.29, and is in the sector Industrial Goods, and Industrial Equipment & Components industry. The target price for Mueller Water Products, Inc. is 13. Currently Mueller Water Products, Inc. is trading with a P/E of 33.77, and a forward P/E of 20.74. Average volume for Mueller Water Products, Inc. is 966.63 and so far today it is 813995.

Performance in the last year for Mueller Water Products, Inc. has been 51.54%. For EPS growth, Mueller Water Products, Inc. has seen a growth of -44.70%, and is looking to grow in the next year to 20.89%. More long term stats show that EPS growth has been 49.30% over the last five years and could be 12.50% for the next five years. Mueller Water Products, Inc. has seen sales growth quarter over quarter at 3.00%, with EPS growth quarter over quarter at -6.10%. The 20-day simple moving average is 1.40%, with the 200-day simple moving average coming to 18.35%.

Since the IPO date for Mueller Water Products, Inc. on the 5/26/2006, Mueller Water Products, Inc. has seen performance year to date to be 44.87%. With Mueller Water Products, Inc. trading at 12.38, the dividend yield is 0.97%, and the EPS is 0.37.

So could Mueller Water Products, Inc., be undervalued? Well as said before P/E is 33.77. The PEG is 2.7, P/S is 1.79 and the P/B is at 5.09. The P/cash is 13.89, with P/free cash flow at 21.94.

Mueller Water Products, Inc. ability to deal with debt shows that the current ratio is 3.6, and the quick ratio is 2.2. This is with long term debt/equity at 1.22, and total debt/equity at 1.24.

In terms of margins, Mueller Water Products, Inc. has a gross margin of 31.20%, an operating margin of 10.30% and a profit margin of 5.20%.Payout ratio for Mueller Water Products, Inc. is 24.30%. Return on assets come to 5.00% with return on investment coming to 6.80%.

Insider ownership for Mueller Water Products, Inc., is at 8.28% and institutional ownership comes to 95.50%. Outstanding shares are at 166.69. While shares float is 155.13. The float short is currently 1.78%, and short ratio is 2.86.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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