Mueller Water Products (MWA)
Profitability ratios
Return on sales
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 34.46% | 34.91% | 34.91% | 34.43% | 32.74% | 30.61% | 29.75% | 28.85% | 28.57% | 28.68% | 29.20% | 30.13% | 31.30% | 32.09% | 32.27% | 33.88% | 33.68% | 33.77% | 34.04% | 33.46% |
| Operating profit margin | 15.49% | 15.14% | 13.82% | 14.05% | 11.86% | 9.55% | 9.99% | 8.74% | 8.79% | 9.05% | 8.95% | 10.55% | 11.24% | 11.59% | 11.85% | 13.38% | 12.21% | 12.57% | 12.11% | 11.92% |
| Pretax margin | 14.64% | 14.11% | 12.43% | 12.60% | 10.29% | 7.93% | 8.54% | 7.43% | 7.60% | 7.94% | 7.90% | 9.43% | 8.46% | 8.55% | 8.54% | 9.82% | 10.08% | 10.44% | 9.76% | 11.41% |
| Net profit margin | 10.48% | 10.05% | 8.82% | 9.71% | 8.10% | 6.35% | 6.70% | 5.77% | 5.90% | 6.18% | 6.14% | 7.25% | 6.38% | 6.38% | 6.34% | 7.28% | 7.56% | 7.93% | 7.47% | 8.85% |
The profitability ratios of Mueller Water Products over the specified period reveal several trends and insights into the company's financial performance.
Gross Profit Margin:
From June 2020 to March 2025, the gross profit margin experienced a gradual decline initially, dropping from 33.46% in June 2020 to a low of approximately 28.57% in March 2023. Subsequently, the gross margin showed signs of recovery, rising sharply to 32.74% by March 2024 and reaching 34.46% by March 2025. This pattern indicates initial pressure on gross profitability, followed by a significant margin expansion in the later periods, possibly attributable to operational efficiencies or improved pricing strategies.
Operating Profit Margin:
The operating profit margin exhibited a declining trend in the earlier part of the period, declining from 11.92% in June 2020 to a low of around 8.74% in June 2023. However, starting in mid-2023, an upward recovery became evident, with margins increasing to 15.49% by March 2025. The recent improvement suggests that the company has increasingly managed its operating expenses relative to sales and may have benefited from operational efficiencies or restructuring efforts.
Pretax Margin:
The pretax margin followed a similar pattern, decreasing from 11.41% in June 2020 to a trough of approximately 7.43% in June 2023. Subsequently, there was a notable rebound, with pretax margins rising to 14.64% by March 2025. This recovery aligns with the trend seen in operating margins, indicating better control over non-operating expenses and overall profitability at the pretax level.
Net Profit Margin:
The net profit margin declined from 8.85% in June 2020 to around 5.77% in June 2023. In the subsequent periods, a positive trend emerged, and by March 2025, the net profit margin increased to 10.48%. This suggests that the company has improved its bottom-line profitability, possibly through cost management, revenue growth, or strategic initiatives that enhanced overall profitability after the earlier period of compression.
Overall Analysis:
The profitability ratios indicate that Mueller Water Products faced profitability pressures between mid-2020 and mid-2023, with margins contracting across gross, operating, pretax, and net levels. However, recent data reflect a significant improvement, signaling a recovery in profitability. This trend could be driven by operational efficiency gains, pricing strategies, cost control measures, or product mix improvements. The notable rebound in margins suggests a positive shift in the company's profitability outlook as of the latest reported periods, although continued monitoring would be necessary to confirm sustained performance.
Return on investment
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.73% | 12.74% | 11.11% | 11.36% | 9.54% | 7.60% | 8.47% | 7.64% | 7.81% | 7.85% | 7.45% | 8.47% | 8.84% | 8.89% | 8.68% | 9.74% | 8.49% | 8.89% | 8.37% | 8.59% |
| Return on assets (ROA) | 8.61% | 8.45% | 7.08% | 7.85% | 6.52% | 5.06% | 5.68% | 5.05% | 5.24% | 5.36% | 5.11% | 5.82% | 5.01% | 4.89% | 4.64% | 5.30% | 5.26% | 5.61% | 5.16% | 6.38% |
| Return on total capital | 23.75% | 23.85% | 22.79% | 22.69% | 19.47% | 15.80% | 17.27% | 15.49% | 16.18% | 16.95% | 17.51% | 18.90% | 20.11% | 20.41% | 20.32% | 13.35% | 10.92% | 11.54% | 10.77% | 24.06% |
| Return on equity (ROE) | 16.47% | 16.41% | 14.31% | 15.55% | 13.29% | 10.57% | 12.02% | 10.56% | 11.04% | 11.59% | 11.44% | 12.49% | 10.74% | 10.57% | 10.13% | 11.52% | 11.28% | 11.97% | 11.24% | 14.02% |
The financial data indicates that Mueller Water Products has demonstrated variable but generally improving profitability ratios over the analyzed period. The Operating Return on Assets (Operating ROA) fluctuated within a range from approximately 7.45% to 12.74%, with notable growth observed toward the latest periods, reaching 12.73% as of March 31, 2025. This suggests an enhancement in operational efficiency and asset utilization in recent years, especially after a period of relative stability around 8-9% prior to 2023.
Similarly, the standard Return on Assets (ROA) experienced upward progression, climbing from around 5.16% in September 2020 to approximately 8.61% by March 2025. This indicates that the company's overall profitability, relative to its total assets, has improved steadily, reflecting better earnings generation capacity.
The Return on Total Capital reveals a more pronounced trend, particularly from late 2023 onward, with values increasing from below 16% to over 23% in March 2025. This upward trend signifies enhanced efficiency in generating returns on all invested capital, including debt and equity, often driven by stronger operational performance and possibly favorable financing conditions.
Return on Equity (ROE) has also shown a general ascending trend, rising from a low of around 10.13% in September 2021 to over 16% by the end of March 2025. This improvement indicates that shareholder value has been increasingly created, potentially due to higher net income and efficient use of equity capital.
Overall, these profitability ratios highlight a positive trajectory with recent periods showing marked improvements, especially in the latest year. These trends suggest that Mueller Water Products has been successfully enhancing its operational efficiency, asset and capital utilization, and ultimately delivering increased value to shareholders.