19.16 USD
-0.39 (-1.99%)
19.16 USD
0 (0%)
Taking everything into account, MLKN scores 4 out of 10 in our fundamental rating. MLKN was compared to 80 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.
- 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
- Looking at the Return On Assets, with a value of -0.64%, MLKN is in line with its industry, outperforming 43.75% of the companies in the same industry.
- MLKN has a Return On Equity of -1.95%. This is comparable to the rest of the industry: MLKN outperforms 45.00% of its industry peers.
- MLKN has a Return On Invested Capital of 5.77%. This is in the better half of the industry: MLKN outperforms 61.25% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MLKN is significantly below the industry average of 10.58%.
- The last Return On Invested Capital (5.77%) for MLKN is above the 3 year average (5.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.64% | ||
| ROE | -1.95% | ||
| ROIC | 5.77% |
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
- Looking at the Operating Margin, with a value of 5.91%, MLKN is in line with its industry, outperforming 55.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of MLKN has declined.
- Looking at the Gross Margin, with a value of 38.67%, MLKN is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
- MLKN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.91% | ||
| PM (TTM) | N/A | ||
| GM | 38.67% |
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.
- MLKN has less shares outstanding than it did 1 year ago.
- MLKN has more shares outstanding than it did 5 years ago.
- MLKN has a worse debt/assets ratio than last year.
2.2 Solvency
- MLKN has an Altman-Z score of 1.81. This is not the best score and indicates that MLKN is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.81, MLKN is in line with its industry, outperforming 48.75% of the companies in the same industry.
- The Debt to FCF ratio of MLKN is 16.18, which is on the high side as it means it would take MLKN, 16.18 years of fcf income to pay off all of its debts.
- MLKN's Debt to FCF ratio of 16.18 is in line compared to the rest of the industry. MLKN outperforms 51.25% of its industry peers.
- MLKN has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external 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 66.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 16.18 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.72
WACC8.04%
2.3 Liquidity
- A Current Ratio of 1.67 indicates that MLKN should not have too much problems paying 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 61.25% of the companies in the same industry.
- A Quick Ratio of 0.95 indicates that MLKN may have some problems paying its short term obligations.
- With a Quick ratio value of 0.95, MLKN is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
- MLKN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.42%.
- The Earnings Per Share has been decreasing by -5.37% on average over the past years.
- MLKN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.34%.
- The Revenue has been growing by 8.10% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.42%
EPS 3Y1.59%
EPS 5Y-5.37%
EPS Q2Q%-21.82%
Revenue 1Y (TTM)4.34%
Revenue growth 3Y-2.39%
Revenue growth 5Y8.1%
Sales Q2Q%-1.57%
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 8.16% on average per year.
- The Revenue is expected to grow by 5.16% on average over the next years.
EPS Next Y-0.62%
EPS Next 2Y8.16%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.87%
Revenue Next 2Y5.16%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.98, the valuation of MLKN can be described as reasonable.
- 87.50% of the companies in the same industry are more expensive than MLKN, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, MLKN is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.40, 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 91.25% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. MLKN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
- MLKN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MLKN is cheaper than 86.25% of the companies in the same industry.
- MLKN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MLKN is cheaper than 78.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.83 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.16%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- MLKN has a Yearly Dividend Yield of 3.71%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.82, MLKN pays a better dividend. On top of this MLKN pays more dividend than 91.25% of the companies listed in the same industry.
- MLKN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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
- 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-201.18%
EPS Next 2Y8.16%
EPS Next 3YN/A
MILLERKNOLL INC / MLKN FAQ
What is the fundamental rating for MLKN stock?
ChartMill assigns a fundamental rating of 4 / 10 to MLKN.
Can you provide the valuation status for MILLERKNOLL INC?
ChartMill assigns a valuation rating of 6 / 10 to MILLERKNOLL INC (MLKN). This can be considered as Fairly Valued.
Can you provide the profitability details for MILLERKNOLL INC?
MILLERKNOLL INC (MLKN) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for MLKN stock?
The Price/Earnings (PE) ratio for MILLERKNOLL INC (MLKN) is 9.98 and the Price/Book (PB) ratio is 1.01.
Can you provide the expected EPS growth for MLKN stock?
The Earnings per Share (EPS) of MILLERKNOLL INC (MLKN) is expected to decline by -0.62% in the next year.