MILLERKNOLL INC (MLKN) Stock Fundamental Analysis
NASDAQ:MLKN - Nasdaq - US6005441000 - Common Stock - Currency: USD
Overall MLKN gets a fundamental rating of 4 out of 10. We evaluated MLKN against 84 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of MLKN while its profitability can be described as average. MLKN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year MLKN was profitable.
MLKN had a positive operating cash flow in the past year.
In multiple years MLKN reported negative net income over the last 5 years.
Of the past 5 years MLKN 4 years had a positive operating cash flow.
1.2 Ratios
MLKN has a Return On Assets (1.61%) which is comparable to the rest of the industry.
MLKN has a Return On Equity of 4.96%. This is comparable to the rest of the industry: MLKN outperforms 57.32% of its industry peers.
MLKN's Return On Invested Capital of 4.89% is in line compared to the rest of the industry. MLKN outperforms 47.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MLKN is significantly below the industry average of 10.12%.
The last Return On Invested Capital (4.89%) for MLKN is above the 3 year average (3.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 4.96% | ||
| ROIC | 4.89% |
ROA(3y)0.81%
ROA(5y)2.06%
ROE(3y)2.33%
ROE(5y)5.14%
ROIC(3y)3.84%
ROIC(5y)7.03%
1.3 Margins
MLKN has a Profit Margin (1.81%) which is comparable to the rest of the industry.
MLKN's Profit Margin has declined in the last couple of years.
MLKN has a Operating Margin (5.14%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MLKN has declined.
MLKN has a Gross Margin of 39.04%. This is in the better half of the industry: MLKN outperforms 62.20% of its industry peers.
In the last couple of years the Gross Margin of MLKN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.14% | ||
| PM (TTM) | 1.81% | ||
| GM | 39.04% |
OM growth 3Y-14.48%
OM growth 5Y-6.59%
PM growth 3Y-31.39%
PM growth 5Y-18.35%
GM growth 3Y0.53%
GM growth 5Y1.55%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MLKN is destroying value.
The number of shares outstanding for MLKN has been reduced compared to 1 year ago.
Compared to 5 years ago, MLKN has more shares outstanding
MLKN has a worse debt/assets ratio than last year.
2.2 Solvency
MLKN has an Altman-Z score of 1.77. This is a bad value and indicates that MLKN is not financially healthy and even has some risk of bankruptcy.
MLKN has a Altman-Z score (1.77) which is in line with its industry peers.
The Debt to FCF ratio of MLKN is 10.55, which is on the high side as it means it would take MLKN, 10.55 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MLKN (10.55) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that MLKN has dependencies on debt financing.
MLKN's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. MLKN is outperformed by 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 10.55 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.63
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.60 indicates that MLKN should not have too much problems paying its short term obligations.
MLKN's Current ratio of 1.60 is fine compared to the rest of the industry. MLKN outperforms 60.98% of its industry peers.
A Quick Ratio of 0.99 indicates that MLKN may have some problems paying its short term obligations.
MLKN has a worse Quick ratio (0.99) than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.28% over the past year.
The Earnings Per Share has been decreasing by -6.81% on average over the past years.
Looking at the last year, MLKN shows a decrease in Revenue. The Revenue has decreased by -5.66% in the last year.
Measured over the past years, MLKN shows a small growth in Revenue. The Revenue has been growing by 7.16% on average per year.
EPS 1Y (TTM)6.28%
EPS 3Y-14.6%
EPS 5Y-6.81%
EPS Q2Q%-6.78%
Revenue 1Y (TTM)-5.66%
Revenue growth 3Y13.75%
Revenue growth 5Y7.16%
Sales Q2Q%2.2%
3.2 Future
Based on estimates for the next years, MLKN will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.34% on average per year.
Based on estimates for the next years, MLKN will show a small growth in Revenue. The Revenue will grow by 3.29% on average per year.
EPS Next Y4.12%
EPS Next 2Y12.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.97%
Revenue Next 2Y3.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.96, the valuation of MLKN can be described as reasonable.
Based on the Price/Earnings ratio, MLKN is valued cheaply inside the industry as 87.80% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MLKN to the average of the S&P500 Index (29.63), we can say MLKN is valued rather cheaply.
A Price/Forward Earnings ratio of 8.47 indicates a reasonable valuation of MLKN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MLKN indicates a rather cheap valuation: MLKN is cheaper than 91.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, MLKN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 8.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLKN is valued a bit cheaper than 76.83% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MLKN is valued a bit cheaper than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.49 | ||
| EV/EBITDA | 8.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MLKN does not grow enough to justify the current Price/Earnings ratio.
MLKN's earnings are expected to grow with 12.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.66
PEG (5Y)N/A
EPS Next 2Y12.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MLKN has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 2.12, MLKN pays a better dividend. On top of this MLKN pays more dividend than 91.46% of the companies listed in the same industry.
MLKN's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of MLKN decreases each year by -0.30%.
MLKN has been paying a dividend for at least 10 years, so it has a reliable track record.
MLKN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.3%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
MLKN pays out 82.62% of its income as dividend. This is not a sustainable payout ratio.
DP82.62%
EPS Next 2Y12.34%
EPS Next 3YN/A
22.24
-0.46 (-2.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.92%
Inst Owner ChangeN/A
Ins Owners1.16%
Ins Owner Change5.49%
Market Cap1.52B
Analysts45.71
Price Target32.13 (44.47%)
Short Float %3.11%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend0.76
Dividend Growth(5Y)-0.3%
DP82.62%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.29%
Min EPS beat(2)-12.31%
Max EPS beat(2)1.74%
EPS beat(4)3
Avg EPS beat(4)3.26%
Min EPS beat(4)-12.31%
Max EPS beat(4)22.78%
EPS beat(8)7
Avg EPS beat(8)15.25%
EPS beat(12)11
Avg EPS beat(12)15.47%
EPS beat(16)13
Avg EPS beat(16)13.83%
Revenue beat(2)0
Avg Revenue beat(2)-2.95%
Min Revenue beat(2)-5.03%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-3.72%
Min Revenue beat(4)-5.97%
Max Revenue beat(4)-0.87%
Revenue beat(8)1
Avg Revenue beat(8)-2.88%
Revenue beat(12)2
Avg Revenue beat(12)-2.41%
Revenue beat(16)4
Avg Revenue beat(16)-0.62%
PT rev (1m)0%
PT rev (3m)-4.55%
EPS NQ rev (1m)-21.78%
EPS NQ rev (3m)-5.71%
EPS NY rev (1m)-1.7%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)3.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 8.47 | ||
| P/S | 0.42 | ||
| P/FCF | 11.49 | ||
| P/OCF | 7.04 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)2.03
EY9.13%
EPS(NY)2.62
Fwd EY11.8%
FCF(TTM)1.94
FCFY8.7%
OCF(TTM)3.16
OCFY14.2%
SpS52.72
BVpS19.23
TBVpS-9.23
PEG (NY)2.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.61% | ||
| ROE | 4.96% | ||
| ROCE | 5.55% | ||
| ROIC | 4.89% | ||
| ROICexc | 5.24% | ||
| ROICexgc | 13.92% | ||
| OM | 5.14% | ||
| PM (TTM) | 1.81% | ||
| GM | 39.04% | ||
| FCFM | 3.67% |
ROA(3y)0.81%
ROA(5y)2.06%
ROE(3y)2.33%
ROE(5y)5.14%
ROIC(3y)3.84%
ROIC(5y)7.03%
ROICexc(3y)4.11%
ROICexc(5y)8.95%
ROICexgc(3y)10.78%
ROICexgc(5y)18.98%
ROCE(3y)4.35%
ROCE(5y)7.97%
ROICexcg growth 3Y-20.3%
ROICexcg growth 5Y-14.11%
ROICexc growth 3Y-29.29%
ROICexc growth 5Y-20.98%
OM growth 3Y-14.48%
OM growth 5Y-6.59%
PM growth 3Y-31.39%
PM growth 5Y-18.35%
GM growth 3Y0.53%
GM growth 5Y1.55%
F-Score7
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 10.55 | ||
| Debt/EBITDA | 4 | ||
| Cap/Depr | 55.31% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.15% | ||
| Profit Quality | 202.92% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.77 |
F-Score7
WACC7.81%
ROIC/WACC0.63
Cap/Depr(3y)51.31%
Cap/Depr(5y)61.86%
Cap/Sales(3y)2.2%
Cap/Sales(5y)2.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.28%
EPS 3Y-14.6%
EPS 5Y-6.81%
EPS Q2Q%-6.78%
EPS Next Y4.12%
EPS Next 2Y12.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.66%
Revenue growth 3Y13.75%
Revenue growth 5Y7.16%
Sales Q2Q%2.2%
Revenue Next Year1.97%
Revenue Next 2Y3.29%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.01%
EBIT growth 3Y-2.72%
EBIT growth 5Y0.1%
EBIT Next Year57.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y373.09%
FCF growth 3Y0.17%
FCF growth 5Y16.84%
OCF growth 1Y432.92%
OCF growth 3Y1.97%
OCF growth 5Y10.24%