MILLERKNOLL INC (MLKN) Stock Fundamental Analysis
NASDAQ:MLKN - Nasdaq - US6005441000 - Common Stock
We assign a fundamental rating of 4 out of 10 to MLKN. MLKN was compared to 83 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MLKN had positive earnings in the past year.
MLKN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MLKN reported negative net income in multiple years.
Of the past 5 years MLKN 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.61%, MLKN is in line with its industry, outperforming 54.88% of the companies in the same 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.
Looking at the Return On Invested Capital, with a value of 4.89%, MLKN is in line with its industry, outperforming 47.56% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MLKN is significantly below the industry average of 10.08%.
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
The Profit Margin of MLKN (1.81%) 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 of 5.14%. This is comparable to the rest of the industry: MLKN outperforms 45.12% of its industry peers.
MLKN's Operating Margin has declined in the last couple of years.
MLKN has a better Gross Margin (39.04%) than 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
MLKN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MLKN has been reduced compared to 1 year ago.
The number of shares outstanding for MLKN has been increased compared to 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 1.76, we must say that MLKN is in the distress zone and has some risk of bankruptcy.
MLKN has a Altman-Z score of 1.76. This is in the lower half of the industry: MLKN underperforms 60.98% of 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.
With a Debt to FCF ratio value of 10.55, MLKN perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
MLKN has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.02, MLKN is not doing good in the industry: 64.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 10.55 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.56
WACC8.73%
2.3 Liquidity
MLKN has a Current Ratio of 1.60. 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 better Current ratio (1.60) than 60.98% of its industry peers.
A Quick Ratio of 0.99 indicates that MLKN may have some problems paying its short term obligations.
The Quick ratio of MLKN (0.99) is worse 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.
Measured over the past years, MLKN shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.81% on average per year.
MLKN shows a decrease in Revenue. In the last year, the revenue decreased by -5.66%.
MLKN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.16% yearly.
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
The Earnings Per Share is expected to grow by 10.39% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.29% on average over the next years.
EPS Next Y5.92%
EPS Next 2Y10.39%
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.
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 10.90, which indicates a very decent valuation of MLKN.
Based on the Price/Earnings ratio, MLKN is valued cheaper than 90.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, MLKN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.73, the valuation of MLKN can be described as reasonable.
MLKN's Price/Forward Earnings ratio is rather cheap when compared to the industry. MLKN is cheaper than 93.90% of the companies in the same industry.
MLKN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
MLKN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MLKN is cheaper than 78.05% of the companies in the same industry.
80.49% of the companies in the same industry are more expensive than MLKN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.6 | ||
| EV/EBITDA | 8.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.84
PEG (5Y)N/A
EPS Next 2Y10.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.51%, MLKN has a reasonable but not impressive dividend return.
MLKN's Dividend Yield is rather good when compared to the industry average which is at 2.09. MLKN pays more dividend than 92.68% of the companies in the same industry.
MLKN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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
82.62% of the earnings are spent on dividend by MLKN. This is not a sustainable payout ratio.
DP82.62%
EPS Next 2Y10.39%
EPS Next 3YN/A
MILLERKNOLL INC
NASDAQ:MLKN (1/21/2025, 8:14:32 PM)
After market: 22.12 0 (0%)22.12
+0.27 (+1.24%)
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 Change9.74%
Market Cap1.53B
Analysts45.71
Price Target32.13 (45.25%)
Short Float %3.35%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
Yearly Dividend0.76
Dividend Growth(5Y)-0.3%
DP82.62%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)-4.55%
PT rev (3m)-4.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.08%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.43 | ||
| P/FCF | 11.6 | ||
| P/OCF | 7.11 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.05 |
EPS(TTM)2.03
EY9.18%
EPS(NY)2.53
Fwd EY11.46%
FCF(TTM)1.91
FCFY8.62%
OCF(TTM)3.11
OCFY14.07%
SpS51.95
BVpS18.95
TBVpS-9.1
PEG (NY)1.84
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 | 1.76 |
F-Score7
WACC8.73%
ROIC/WACC0.56
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 Y5.92%
EPS Next 2Y10.39%
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%