MILLERKNOLL INC (MLKN) Stock Fundamental Analysis
NASDAQ:MLKN - Nasdaq - US6005441000 - Common Stock - Currency: USD
Taking everything into account, MLKN scores 4 out of 10 in our fundamental rating. MLKN was compared to 83 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of MLKN have multiple concerns. A decent growth rate in combination with a cheap valuation! Better keep an eye on MLKN.
1. Profitability
1.1 Basic Checks
In the past year MLKN was profitable.
In the past year MLKN had a positive cash flow from operations.
In multiple years MLKN reported negative net income over the last 5 years.
In multiple years MLKN reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 0.77%, MLKN perfoms like the industry average, outperforming 48.19% of the companies in the same industry.
With a Return On Equity value of 2.40%, MLKN perfoms like the industry average, outperforming 51.81% of the companies in the same industry.
MLKN's Return On Invested Capital of 1.65% is on the low side compared to the rest of the industry. MLKN is outperformed by 62.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MLKN is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 2.4% | ||
| ROIC | 1.65% |
ROA(3y)0.7%
ROA(5y)1.96%
ROE(3y)2%
ROE(5y)4.84%
ROIC(3y)3.84%
ROIC(5y)4.98%
1.3 Margins
The Profit Margin of MLKN (0.84%) is comparable to the rest of the industry.
With a Operating Margin value of 1.73%, MLKN is not doing good in the industry: 61.45% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MLKN has declined.
Looking at the Gross Margin, with a value of 38.87%, MLKN is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
In the last couple of years the Gross Margin of MLKN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.73% | ||
| PM (TTM) | 0.84% | ||
| GM | 38.87% |
OM growth 3Y10.91%
OM growth 5Y-29.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.18%
GM growth 5Y1.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MLKN is destroying value.
Compared to 1 year ago, MLKN has less shares outstanding
MLKN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MLKN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that MLKN is in the distress zone and has some risk of bankruptcy.
MLKN has a worse Altman-Z score (1.70) than 63.86% of its industry peers.
The Debt to FCF ratio of MLKN is 10.50, which is on the high side as it means it would take MLKN, 10.50 years of fcf income to pay off all of its debts.
MLKN has a Debt to FCF ratio (10.50) which is comparable to the rest of the industry.
MLKN has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.02, MLKN is doing worse than 65.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 10.5 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.2
WACC8.13%
2.3 Liquidity
A Current Ratio of 1.67 indicates that MLKN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.67, MLKN is in line with its industry, outperforming 57.83% of the companies in the same industry.
MLKN has a Quick Ratio of 1.05. This is a normal value and indicates that MLKN is financially healthy and should not expect problems in meeting its short term obligations.
MLKN has a Quick ratio of 1.05. This is in the lower half of the industry: MLKN underperforms 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
MLKN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.25%.
Measured over the past years, MLKN shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.37% on average per year.
MLKN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.14%.
MLKN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.10% yearly.
EPS 1Y (TTM)-6.25%
EPS 3Y1.59%
EPS 5Y-5.37%
EPS Q2Q%-10.45%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y-2.39%
Revenue growth 5Y8.1%
Sales Q2Q%8.2%
3.2 Future
The Earnings Per Share is expected to grow by 12.28% on average over the next years. This is quite good.
Based on estimates for the next years, MLKN will show a small growth in Revenue. The Revenue will grow by 3.09% on average per year.
EPS Next Y1.65%
EPS Next 2Y12.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.49%
Revenue Next 2Y3.09%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.64, which indicates a very decent valuation of MLKN.
Compared to the rest of the industry, the Price/Earnings ratio of MLKN indicates a rather cheap valuation: MLKN is cheaper than 85.54% of the companies listed in the same industry.
MLKN is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.46, which indicates a very decent 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 87.95% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, MLKN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLKN is valued a bit cheaper than 61.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MLKN is valued cheaply inside the industry as 87.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.08 | ||
| EV/EBITDA | 12.36 |
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.
A more expensive valuation may be justified as MLKN's earnings are expected to grow with 12.28% in the coming years.
PEG (NY)6.44
PEG (5Y)N/A
EPS Next 2Y12.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MLKN has a Yearly Dividend Yield of 3.54%.
Compared to an average industry Dividend Yield of 2.44, MLKN pays a better dividend. On top of this MLKN pays more dividend than 87.95% of the companies listed in the same industry.
MLKN's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
5.2 History
The dividend of MLKN decreases each year by -0.30%.
MLKN has paid a dividend for at least 10 years, which is 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
174.09% of the earnings are spent on dividend by MLKN. This is not a sustainable payout ratio.
DP174.09%
EPS Next 2Y12.28%
EPS Next 3YN/A
20.74
-0.48 (-2.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners98.88%
Inst Owner ChangeN/A
Ins Owners1.21%
Ins Owner Change5.3%
Market Cap1.41B
Analysts43.33
Price Target38.76 (86.89%)
Short Float %4.95%
Short Ratio6.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.54% |
Yearly Dividend0.76
Dividend Growth(5Y)-0.3%
DP174.09%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.11%
Min EPS beat(2)-1.96%
Max EPS beat(2)1.74%
EPS beat(4)2
Avg EPS beat(4)2.56%
Min EPS beat(4)-12.31%
Max EPS beat(4)22.78%
EPS beat(8)6
Avg EPS beat(8)11.82%
EPS beat(12)10
Avg EPS beat(12)15.04%
EPS beat(16)12
Avg EPS beat(16)13.05%
Revenue beat(2)0
Avg Revenue beat(2)-3.69%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-3.86%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)-0.87%
Revenue beat(8)1
Avg Revenue beat(8)-3.3%
Revenue beat(12)2
Avg Revenue beat(12)-2.77%
Revenue beat(16)4
Avg Revenue beat(16)-0.94%
PT rev (1m)24.59%
PT rev (3m)24.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.29%
EPS NY rev (1m)7.07%
EPS NY rev (3m)-24.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 10.46 | ||
| P/S | 0.39 | ||
| P/FCF | 11.08 | ||
| P/OCF | 6.48 | ||
| P/B | 1.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.36 |
EPS(TTM)1.95
EY9.4%
EPS(NY)1.98
Fwd EY9.56%
FCF(TTM)1.87
FCFY9.02%
OCF(TTM)3.2
OCFY15.43%
SpS53.09
BVpS18.51
TBVpS-7.91
PEG (NY)6.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 2.4% | ||
| ROCE | 1.94% | ||
| ROIC | 1.65% | ||
| ROICexc | 1.75% | ||
| ROICexgc | 4.24% | ||
| OM | 1.73% | ||
| PM (TTM) | 0.84% | ||
| GM | 38.87% | ||
| FCFM | 3.53% |
ROA(3y)0.7%
ROA(5y)1.96%
ROE(3y)2%
ROE(5y)4.84%
ROIC(3y)3.84%
ROIC(5y)4.98%
ROICexc(3y)4.11%
ROICexc(5y)5.99%
ROICexgc(3y)10.02%
ROICexgc(5y)12.85%
ROCE(3y)4.51%
ROCE(5y)5.84%
ROICexcg growth 3Y-18.2%
ROICexcg growth 5Y-45.32%
ROICexc growth 3Y12.29%
ROICexc growth 5Y-37.41%
OM growth 3Y10.91%
OM growth 5Y-29.28%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.18%
GM growth 5Y1.14%
F-Score7
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 10.5 | ||
| Debt/EBITDA | 6.1 | ||
| Cap/Depr | 60.77% | ||
| Cap/Sales | 2.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.04% | ||
| Profit Quality | 421.26% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.7 |
F-Score7
WACC8.13%
ROIC/WACC0.2
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.25%
EPS 3Y1.59%
EPS 5Y-5.37%
EPS Q2Q%-10.45%
EPS Next Y1.65%
EPS Next 2Y12.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.14%
Revenue growth 3Y-2.39%
Revenue growth 5Y8.1%
Sales Q2Q%8.2%
Revenue Next Year3.49%
Revenue Next 2Y3.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-68.55%
EBIT growth 3Y8.26%
EBIT growth 5Y-23.55%
EBIT Next Year56.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-55.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-40.83%
OCF growth 3YN/A
OCF growth 5YN/A