MILLERKNOLL INC (MLKN) Stock Fundamental Analysis
NASDAQ:MLKN - Nasdaq - US6005441000 - Common Stock - Currency: USD
Overall MLKN gets a fundamental rating of 3 out of 10. We evaluated MLKN against 83 industry peers in the Commercial Services & Supplies industry. MLKN may be in some trouble as it scores bad on both profitability and health. MLKN is cheap, but on the other hand it scores bad on growth.
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.
In multiple years MLKN reported negative net income over the last 5 years.
MLKN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MLKN's Return On Assets of 0.77% is in line compared to the rest of the industry. MLKN outperforms 46.99% of its industry peers.
MLKN has a Return On Equity (2.40%) which is comparable to the rest of the industry.
MLKN has a worse Return On Invested Capital (1.71%) than 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 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 2.4% | ||
| ROIC | 1.71% |
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
With a Profit Margin value of 0.84%, MLKN perfoms like the industry average, outperforming 45.78% of the companies in the same industry.
MLKN's Profit Margin has declined in the last couple of years.
MLKN's Operating Margin of 1.73% is on the low side compared to the rest of the industry. MLKN is outperformed by 61.45% of its industry peers.
In the last couple of years the Operating Margin of MLKN has declined.
MLKN's Gross Margin of 38.87% is fine compared to the rest of the industry. MLKN outperforms 62.65% of its industry peers.
In the last couple of years the Gross Margin of MLKN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.73% | ||
| PM (TTM) | 0.84% | ||
| GM | 38.87% |
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.
MLKN has less shares outstanding than it did 1 year ago.
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 1.61, we must say that MLKN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.61, MLKN is doing worse than 61.45% of the companies in the same industry.
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 of 10.50. This is comparable to the rest of the industry: MLKN outperforms 51.81% of its industry peers.
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 65.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 10.5 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.22
WACC7.77%
2.3 Liquidity
MLKN has a Current Ratio of 1.67. This is a normal value and indicates that MLKN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.67, MLKN is in the better half of the industry, outperforming 60.24% 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.
Looking at the Quick ratio, with a value of 1.05, MLKN is doing worse than 66.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.99% over the past year.
MLKN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.81% yearly.
The Revenue has decreased by -2.68% in the past year.
MLKN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.16% yearly.
EPS 1Y (TTM)10.99%
EPS 3Y-14.6%
EPS 5Y-6.81%
EPS Q2Q%-2.22%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y13.75%
Revenue growth 5Y7.16%
Sales Q2Q%0.45%
3.2 Future
MLKN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.73% yearly.
Based on estimates for the next years, MLKN will show a small growth in Revenue. The Revenue will grow by 1.90% on average per year.
EPS Next Y-11.73%
EPS Next 2Y-5.66%
EPS Next 3Y5.73%
EPS Next 5YN/A
Revenue Next Year-0.13%
Revenue Next 2Y1.5%
Revenue Next 3Y1.9%
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
A Price/Earnings ratio of 7.88 indicates a rather cheap valuation of MLKN.
Based on the Price/Earnings ratio, MLKN is valued cheaper than 86.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.33. MLKN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.60 indicates a reasonable valuation of MLKN.
Based on the Price/Forward Earnings ratio, MLKN is valued cheaply inside the industry as 91.57% of the companies are valued more expensively.
MLKN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.88 | ||
| Fwd PE | 8.6 |
4.2 Price Multiples
MLKN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MLKN is cheaper than 63.86% of the companies in the same industry.
MLKN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MLKN is cheaper than 80.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.51 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.66%
EPS Next 3Y5.73%
5. Dividend
5.1 Amount
MLKN has a Yearly Dividend Yield of 4.77%, which is a nice return.
In the last 3 months the price of MLKN has falen by -29.24%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MLKN's Dividend Yield is rather good when compared to the industry average which is at 2.57. MLKN pays more dividend than 93.98% of the companies in the same industry.
MLKN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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 174.09% of its income as dividend. This is not a sustainable payout ratio.
DP174.09%
EPS Next 2Y-5.66%
EPS Next 3Y5.73%
15.92
+0.45 (+2.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.35%
Inst Owner ChangeN/A
Ins Owners1.2%
Ins Owner Change5.3%
Market Cap1.08B
Analysts45.71
Price Target31.11 (95.41%)
Short Float %3.62%
Short Ratio4.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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)-3.17%
PT rev (3m)-3.17%
EPS NQ rev (1m)-41.88%
EPS NQ rev (3m)-36.3%
EPS NY rev (1m)-15.23%
EPS NY rev (3m)-16.67%
Revenue NQ rev (1m)-4.11%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)-2.06%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.88 | ||
| Fwd PE | 8.6 | ||
| P/S | 0.3 | ||
| P/FCF | 8.51 | ||
| P/OCF | 4.97 | ||
| P/B | 0.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.5 |
EPS(TTM)2.02
EY12.69%
EPS(NY)1.85
Fwd EY11.63%
FCF(TTM)1.87
FCFY11.76%
OCF(TTM)3.2
OCFY20.1%
SpS53.09
BVpS18.51
TBVpS-7.91
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | 2.4% | ||
| ROCE | 1.94% | ||
| ROIC | 1.71% | ||
| ROICexc | 1.81% | ||
| ROICexgc | 4.39% | ||
| OM | 1.73% | ||
| PM (TTM) | 0.84% | ||
| GM | 38.87% | ||
| FCFM | 3.53% |
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 Turnover0.92
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 | 1.61 |
F-Score7
WACC7.77%
ROIC/WACC0.22
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)10.99%
EPS 3Y-14.6%
EPS 5Y-6.81%
EPS Q2Q%-2.22%
EPS Next Y-11.73%
EPS Next 2Y-5.66%
EPS Next 3Y5.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y13.75%
Revenue growth 5Y7.16%
Sales Q2Q%0.45%
Revenue Next Year-0.13%
Revenue Next 2Y1.5%
Revenue Next 3Y1.9%
Revenue Next 5YN/A
EBIT growth 1Y-68.55%
EBIT growth 3Y-2.72%
EBIT growth 5Y0.1%
EBIT Next Year48.59%
EBIT Next 3Y17.62%
EBIT Next 5YN/A
FCF growth 1Y371.38%
FCF growth 3Y0.17%
FCF growth 5Y16.84%
OCF growth 1Y86.25%
OCF growth 3Y1.97%
OCF growth 5Y10.24%