MILLERKNOLL INC (MLKN) Stock Fundamental Analysis
USA - NASDAQ:MLKN - US6005441000 - Common Stock
14.84 USD
+0.18 (+1.23%)
14.84 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MLKN. MLKN was compared to 82 industry peers in the Commercial Services & Supplies industry. While MLKN is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on MLKN. MLKN also has an excellent dividend rating.
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.
Of the past 5 years MLKN 4 years had a positive operating cash flow.
1.2 Ratios
MLKN has a Return On Assets (-0.39%) which is in line with its industry peers.
MLKN has a Return On Equity (-1.19%) which is in line with its industry peers.
With a Return On Invested Capital value of 6.07%, MLKN perfoms like the industry average, outperforming 59.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MLKN is significantly below the industry average of 10.51%.
The 3 year average ROIC (5.11%) for MLKN is below the current ROIC(6.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.39% | ||
| ROE | -1.19% | ||
| ROIC | 6.07% |
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
MLKN's Operating Margin of 6.22% is in line compared to the rest of the industry. MLKN outperforms 54.88% of its industry peers.
In the last couple of years the Operating Margin of MLKN has declined.
MLKN has a better Gross Margin (38.64%) than 64.63% of its industry peers.
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 | 6.22% | ||
| PM (TTM) | N/A | ||
| GM | 38.64% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
MLKN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.75, we must say that MLKN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.75, MLKN perfoms like the industry average, outperforming 47.56% of the companies in the same industry.
MLKN has a debt to FCF ratio of 16.41. This is a negative value and a sign of low solvency as MLKN would need 16.41 years to pay back of all of its debts.
MLKN has a Debt to FCF ratio (16.41) which is in line with its industry peers.
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 67.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 16.41 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.78
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.
MLKN's Current ratio of 1.67 is fine compared to the rest of the industry. MLKN outperforms 62.20% of its industry peers.
A Quick Ratio of 0.96 indicates that MLKN may have some problems paying its short term obligations.
MLKN has a worse Quick ratio (0.96) than 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
MLKN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.45%.
MLKN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.37% yearly.
The Revenue has been growing slightly by 5.37% in the past year.
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)-1.45%
EPS 3Y1.59%
EPS 5Y-5.37%
EPS Q2Q%25%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y-2.39%
Revenue growth 5Y8.1%
Sales Q2Q%10.93%
3.2 Future
MLKN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.57% yearly.
The Revenue is expected to grow by 4.33% on average over the next years.
EPS Next Y-4.45%
EPS Next 2Y8.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.71%
Revenue Next 2Y4.33%
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
MLKN is valuated cheaply with a Price/Earnings ratio of 7.27.
Compared to the rest of the industry, the Price/Earnings ratio of MLKN indicates a rather cheap valuation: MLKN is cheaper than 92.68% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. MLKN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.46, the valuation of MLKN can be described as very cheap.
MLKN's Price/Forward Earnings ratio is rather cheap when compared to the industry. MLKN is cheaper than 92.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, MLKN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.27 | ||
| Fwd PE | 6.46 |
4.2 Price Multiples
91.46% of the companies in the same industry are more expensive than MLKN, based on the Enterprise Value to EBITDA ratio.
MLKN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MLKN is cheaper than 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.41 | ||
| EV/EBITDA | 5.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MLKN has a Yearly Dividend Yield of 5.16%, which is a nice return.
The stock price of MLKN dropped by -30.13% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MLKN's Dividend Yield is rather good when compared to the industry average which is at 2.54. 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
5.2 History
The dividend of MLKN has a limited annual growth rate of 3.87%.
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)3.87%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
The earnings of MLKN are negative and hence is the payout ratio. MLKN will probably not be able to sustain this dividend level.
The dividend of MLKN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-330.32%
EPS Next 2Y8.57%
EPS Next 3YN/A
14.84
+0.18 (+1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.67%
Inst Owner ChangeN/A
Ins Owners1.28%
Ins Owner Change23.82%
Market Cap1.02B
Revenue(TTM)3.76B
Net Income(TTM)-15.50M
Analysts43.33
Price Target35.7 (140.57%)
Short Float %2.9%
Short Ratio3.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
Yearly Dividend0.75
Dividend Growth(5Y)3.87%
DP-330.32%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.6%
Min EPS beat(2)28.5%
Max EPS beat(2)34.71%
EPS beat(4)3
Avg EPS beat(4)15.75%
Min EPS beat(4)-1.96%
Max EPS beat(4)34.71%
EPS beat(8)6
Avg EPS beat(8)10.11%
EPS beat(12)10
Avg EPS beat(12)15.93%
EPS beat(16)13
Avg EPS beat(16)14.64%
Revenue beat(2)2
Avg Revenue beat(2)3.03%
Min Revenue beat(2)2.85%
Max Revenue beat(2)3.2%
Revenue beat(4)2
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)3.2%
Revenue beat(8)2
Avg Revenue beat(8)-2.44%
Revenue beat(12)4
Avg Revenue beat(12)-1.91%
Revenue beat(16)4
Avg Revenue beat(16)-2.06%
PT rev (1m)0%
PT rev (3m)-7.89%
EPS NQ rev (1m)-3.17%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)2.05%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)-2.01%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.27 | ||
| Fwd PE | 6.46 | ||
| P/S | 0.27 | ||
| P/FCF | 12.41 | ||
| P/OCF | 5.15 | ||
| P/B | 0.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.81 |
EPS(TTM)2.04
EY13.75%
EPS(NY)2.3
Fwd EY15.49%
FCF(TTM)1.2
FCFY8.06%
OCF(TTM)2.88
OCFY19.44%
SpS54.94
BVpS18.97
TBVpS-7.86
PEG (NY)N/A
PEG (5Y)N/A
Graham Number29.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.39% | ||
| ROE | -1.19% | ||
| ROCE | 7.12% | ||
| ROIC | 6.07% | ||
| ROICexc | 6.39% | ||
| ROICexgc | 15.55% | ||
| OM | 6.22% | ||
| PM (TTM) | N/A | ||
| GM | 38.64% | ||
| FCFM | 2.18% |
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%
ROICexgc growth 3Y74.29%
ROICexgc 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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 16.41 | ||
| Debt/EBITDA | 3.54 | ||
| Cap/Depr | 81.88% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.75 |
F-Score5
WACC7.77%
ROIC/WACC0.78
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)-1.45%
EPS 3Y1.59%
EPS 5Y-5.37%
EPS Q2Q%25%
EPS Next Y-4.45%
EPS Next 2Y8.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.37%
Revenue growth 3Y-2.39%
Revenue growth 5Y8.1%
Sales Q2Q%10.93%
Revenue Next Year4.71%
Revenue Next 2Y4.33%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y26.88%
EBIT growth 3Y69.93%
EBIT growth 5Y0.2%
EBIT Next Year57.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-69.97%
FCF growth 3YN/A
FCF growth 5Y-7.82%
OCF growth 1Y-44.9%
OCF growth 3YN/A
OCF growth 5Y-1.15%
MILLERKNOLL INC / MLKN FAQ
What is the fundamental rating for MLKN stock?
ChartMill assigns a fundamental rating of 4 / 10 to MLKN.
What is the valuation status for MLKN stock?
ChartMill assigns a valuation rating of 7 / 10 to MILLERKNOLL INC (MLKN). This can be considered as Undervalued.
Can you provide the profitability details for MILLERKNOLL INC?
MILLERKNOLL INC (MLKN) has a profitability rating of 4 / 10.
What are the PE and PB ratios of MILLERKNOLL INC (MLKN) stock?
The Price/Earnings (PE) ratio for MILLERKNOLL INC (MLKN) is 7.27 and the Price/Book (PB) ratio is 0.78.
What is the earnings growth outlook for MILLERKNOLL INC?
The Earnings per Share (EPS) of MILLERKNOLL INC (MLKN) is expected to decline by -4.45% in the next year.