MILLERKNOLL INC (MLKN)
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 not valued too expensively and it also shows a decent growth rate.
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.
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
With a Return On Assets value of 1.60%, MLKN perfoms like the industry average, outperforming 53.01% of the companies in the same industry.
MLKN's Return On Equity of 4.83% is in line compared to the rest of the industry. MLKN outperforms 55.42% of its industry peers.
MLKN has a Return On Invested Capital (4.87%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for MLKN is significantly below the industry average of 10.02%.
The last Return On Invested Capital (4.87%) for MLKN is above the 3 year average (3.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 4.83% | ||
| ROIC | 4.87% |
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
Looking at the Profit Margin, with a value of 1.80%, MLKN is in line with its industry, outperforming 49.40% of the companies in the same industry.
MLKN's Profit Margin has declined in the last couple of years.
MLKN's Operating Margin of 5.16% is in line compared to the rest of the industry. MLKN outperforms 46.99% of its industry peers.
In the last couple of years the Operating Margin of MLKN has declined.
MLKN has a Gross Margin of 39.13%. This is in the better half of the industry: MLKN outperforms 65.06% of its industry peers.
In the last couple of years the Gross Margin of MLKN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.16% | ||
| PM (TTM) | 1.8% | ||
| GM | 39.13% |
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.
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 1.80, we must say that MLKN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.80, MLKN is not doing good in the industry: 61.45% of the companies in the same industry are doing better.
MLKN has a debt to FCF ratio of 8.49. This is a slightly negative value and a sign of low solvency as MLKN would need 8.49 years to pay back of all of its debts.
MLKN has a Debt to FCF ratio (8.49) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.99 indicates that MLKN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.99, MLKN is doing worse than 63.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 8.49 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.61
WACC8.01%
2.3 Liquidity
MLKN has a Current Ratio of 1.59. 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 of 1.59. This is comparable to the rest of the industry: MLKN outperforms 57.83% of its industry peers.
A Quick Ratio of 0.93 indicates that MLKN may have some problems paying its short term obligations.
MLKN's Quick ratio of 0.93 is on the low side compared to the rest of the industry. MLKN is outperformed by 72.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
MLKN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.29%, which is quite good.
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 -9.01% 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)16.29%
EPS 3Y-14.6%
EPS 5Y-6.81%
EPS Q2Q%-2.7%
Revenue 1Y (TTM)-9.01%
Revenue growth 3Y13.75%
Revenue growth 5Y7.16%
Sales Q2Q%-6.12%
3.2 Future
Based on estimates for the next years, MLKN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.39% on average per year.
The Revenue is expected to grow by 2.93% on average over the next years.
EPS Next Y5.92%
EPS Next 2Y10.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.72%
Revenue Next 2Y2.93%
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
A Price/Earnings ratio of 11.75 indicates a reasonable 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 89.16% of the companies listed in the same industry.
MLKN is valuated cheaply when we compare the Price/Earnings ratio to 27.83, which is the current average of the S&P500 Index.
MLKN is valuated reasonably with a Price/Forward Earnings ratio of 9.60.
Based on the Price/Forward Earnings ratio, MLKN is valued cheaply inside the industry as 92.77% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.65. MLKN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
MLKN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MLKN is cheaper than 75.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MLKN is valued cheaply inside the industry as 86.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.43 | ||
| EV/EBITDA | 8.63 |
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)1.98
PEG (5Y)N/A
EPS Next 2Y10.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.04%, 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 1.97. MLKN pays more dividend than 90.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, MLKN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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
84.78% of the earnings are spent on dividend by MLKN. This is not a sustainable payout ratio.
DP84.78%
EPS Next 2Y10.39%
EPS Next 3YN/A
MILLERKNOLL INC
NASDAQ:MLKN (12/18/2024, 8:00:01 PM)
After market: 21.71 -2.62 (-10.77%)24.33
-0.96 (-3.8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.68B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 9.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.6% | ||
| ROE | 4.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.16% | ||
| PM (TTM) | 1.8% | ||
| GM | 39.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)16.29%
EPS 3Y-14.6%
EPS 5Y
EPS Q2Q%
EPS Next Y5.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.01%
Revenue growth 3Y13.75%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y