MILLERKNOLL INC (MLKN) Stock Fundamental Analysis
USA - NASDAQ:MLKN - US6005441000 - Common Stock
20.18 USD
-0.29 (-1.42%)
20.18 USD
0 (0%)
Taking everything into account, MLKN scores 4 out of 10 in our fundamental rating. MLKN was compared to 84 industry peers in the Commercial Services & Supplies industry. MLKN has a medium profitability rating, but doesn't score so well on its financial health evaluation. MLKN is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year MLKN was profitable.
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.
MLKN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MLKN has a Return On Assets (-0.93%) which is in line with its industry peers.
MLKN has a Return On Equity of -2.89%. This is comparable to the rest of the industry: MLKN outperforms 40.48% of its industry peers.
The Return On Invested Capital of MLKN (5.13%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MLKN is significantly below the industry average of 10.60%.
The last Return On Invested Capital (5.13%) for MLKN is above the 3 year average (5.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.93% | ||
| ROE | -2.89% | ||
| ROIC | 5.13% |
ROA(3y)0.7%
ROA(5y)1.96%
ROE(3y)2%
ROE(5y)4.84%
ROIC(3y)5.11%
ROIC(5y)5.74%
1.3 Margins
The Operating Margin of MLKN (5.32%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MLKN has declined.
Looking at the Gross Margin, with a value of 38.76%, MLKN is in the better half of the industry, outperforming 64.29% 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 | 5.32% | ||
| PM (TTM) | N/A | ||
| GM | 38.76% |
OM growth 3Y74.09%
OM growth 5Y-7.31%
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
Compared to 5 years ago, MLKN has more shares outstanding
Compared to 1 year ago, MLKN has a worse debt to assets ratio.
2.2 Solvency
MLKN has an Altman-Z score of 1.76. This is a bad value and indicates that MLKN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.76, MLKN perfoms like the industry average, outperforming 44.05% of the companies in the same industry.
MLKN has a debt to FCF ratio of 13.04. This is a negative value and a sign of low solvency as MLKN would need 13.04 years to pay back of all of its debts.
With a Debt to FCF ratio value of 13.04, MLKN perfoms like the industry average, outperforming 48.81% of the companies in the same industry.
A Debt/Equity ratio of 1.03 is on the high side and indicates that MLKN has dependencies on debt financing.
The Debt to Equity ratio of MLKN (1.03) is worse than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 13.04 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.63
WACC8.18%
2.3 Liquidity
MLKN has a Current Ratio of 1.58. 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 Current ratio (1.58) which is in line with its industry peers.
MLKN has a Quick Ratio of 1.58. This is a bad value and indicates that MLKN is not financially healthy enough and could expect problems in meeting its short term obligations.
MLKN has a worse Quick ratio (0.94) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.94 |
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%.
Measured over the past years, MLKN shows a quite strong growth in Revenue. The Revenue has been growing by 8.10% on average per year.
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 9.21% on average over the next years. This is quite good.
MLKN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
EPS Next Y-6.37%
EPS Next 2Y9.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.06%
Revenue Next 2Y3.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 10.35, the valuation of MLKN can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MLKN indicates a rather cheap valuation: MLKN is cheaper than 89.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, MLKN is valued rather cheaply.
MLKN is valuated reasonably with a Price/Forward Earnings ratio of 11.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MLKN indicates a rather cheap valuation: MLKN is cheaper than 88.10% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MLKN to the average of the S&P500 Index (22.71), we can say MLKN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLKN is valued cheaper than 80.95% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MLKN is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.58 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MLKN has a Yearly Dividend Yield of 3.56%. Purely for dividend investing, there may be better candidates out there.
MLKN's Dividend Yield is rather good when compared to the industry average which is at 2.27. MLKN pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, MLKN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
The dividend of MLKN has a limited annual growth rate of 3.87%.
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)3.87%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
MLKN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of MLKN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-140.11%
EPS Next 2Y9.21%
EPS Next 3YN/A
20.18
-0.29 (-1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.99%
Inst Owner ChangeN/A
Ins Owners1.22%
Ins Owner Change23.82%
Market Cap1.38B
Analysts43.33
Price Target38.76 (92.07%)
Short Float %3.36%
Short Ratio5.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend0.75
Dividend Growth(5Y)3.87%
DP-140.11%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.37%
Min EPS beat(2)-1.96%
Max EPS beat(2)34.71%
EPS beat(4)2
Avg EPS beat(4)5.54%
Min EPS beat(4)-12.31%
Max EPS beat(4)34.71%
EPS beat(8)6
Avg EPS beat(8)15.64%
EPS beat(12)10
Avg EPS beat(12)16.18%
EPS beat(16)12
Avg EPS beat(16)12.67%
Revenue beat(2)1
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)3.2%
Revenue beat(4)1
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)3.2%
Revenue beat(8)2
Avg Revenue beat(8)-2.8%
Revenue beat(12)3
Avg Revenue beat(12)-2.41%
Revenue beat(16)4
Avg Revenue beat(16)-1.02%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 11.05 | ||
| P/S | 0.38 | ||
| P/FCF | 13.58 | ||
| P/OCF | 6.6 | ||
| P/B | 1.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.49 |
EPS(TTM)1.95
EY9.66%
EPS(NY)1.83
Fwd EY9.05%
FCF(TTM)1.49
FCFY7.36%
OCF(TTM)3.06
OCFY15.15%
SpS53.61
BVpS18.64
TBVpS-8.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.93% | ||
| ROE | -2.89% | ||
| ROCE | 6.02% | ||
| ROIC | 5.13% | ||
| ROICexc | 5.45% | ||
| ROICexgc | 13.64% | ||
| OM | 5.32% | ||
| PM (TTM) | N/A | ||
| GM | 38.76% | ||
| FCFM | 2.77% |
ROA(3y)0.7%
ROA(5y)1.96%
ROE(3y)2%
ROE(5y)4.84%
ROIC(3y)5.11%
ROIC(5y)5.74%
ROICexc(3y)5.46%
ROICexc(5y)6.8%
ROICexgc(3y)14.1%
ROICexgc(5y)15.3%
ROCE(3y)5.99%
ROCE(5y)6.73%
ROICexcg growth 3Y74.29%
ROICexcg growth 5Y-13.91%
ROICexc growth 3Y76.25%
ROICexc growth 5Y-17.97%
OM growth 3Y74.09%
OM growth 5Y-7.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.18%
GM growth 5Y1.14%
F-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 13.04 | ||
| Debt/EBITDA | 3.9 | ||
| Cap/Depr | 76.58% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 2.83 | ||
| Cash Conversion | 62.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.76 |
F-Score5
WACC8.18%
ROIC/WACC0.63
Cap/Depr(3y)60.28%
Cap/Depr(5y)59.82%
Cap/Sales(3y)2.38%
Cap/Sales(5y)2.39%
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 Y-6.37%
EPS Next 2Y9.21%
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 Year4.06%
Revenue Next 2Y3.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-9.08%
EBIT growth 3Y69.93%
EBIT growth 5Y0.2%
EBIT Next Year57.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-62.87%
FCF growth 3YN/A
FCF growth 5Y-7.82%
OCF growth 1Y-40.59%
OCF growth 3YN/A
OCF growth 5Y-1.15%