Mueller Industries: Use The Intermediate Price Weakness To Access This Quality Business

Mueller Industries, which is in the business of supplying various copper, brass, and aluminum products mainly for the construction markets, has been underperforming its industrial peers on a YTD basis. MLI still benefits from leading market positions, consistent gross margins, a debt-free balance sheet, and a record $1.4B cash, supporting both acquisitions and shareholder returns. MLI is priced at a similar fwd P/E multiples as my last coverage, but this time around, it is staring at solid forward positive earnings growth and is cheaper than other peers. Residential construction sector softness and a price momentum drag serve as potential risks.

Mueller Industries (MLI), a Tennessee-based industrial manufacturing company that has been around since 1917, is noted for its expertise in copper, brass, and aluminum products, which are sold across the globe (although the US still accounts for 79% of