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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MLKN had positive earnings in the past year.
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
The Return On Assets of MLKN (0.77%) is comparable to the rest of the industry.
MLKN has a Return On Equity (2.40%) which is comparable to the rest of the industry.
The Return On Invested Capital of MLKN (1.71%) is worse than 61.45% of its industry peers.
MLKN had an Average Return On Invested Capital over the past 3 years of 3.84%. This is significantly below the industry average of 10.57%.
| 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
The Profit Margin of MLKN (0.84%) is comparable to the rest of the 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 60.24% of its industry peers.
MLKN's Operating Margin has declined in the last couple of years.
MLKN's Gross Margin of 38.87% is fine compared to the rest of the industry. MLKN outperforms 63.86% of its industry peers.
MLKN's Gross Margin has improved in the last couple of years.
| 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
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.
Compared to 5 years ago, MLKN has more shares outstanding
MLKN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that MLKN is in the distress zone and has some risk of bankruptcy.
MLKN has a worse Altman-Z score (1.63) than 63.86% of its industry peers.
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.
The Debt to FCF ratio of MLKN (10.50) is comparable to the rest of the industry.
MLKN has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
MLKN has a worse Debt to Equity ratio (1.02) than 66.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 10.5 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.22
WACC7.75%
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 has a better Current ratio (1.67) than 60.24% of its industry peers.
A Quick Ratio of 1.05 indicates that MLKN should not have too much problems paying 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.
The Earnings Per Share has been decreasing by -6.81% on average over the past years.
Looking at the last year, MLKN shows a decrease in Revenue. The Revenue has decreased by -2.68% in the last year.
Measured over the past years, MLKN shows a small growth in Revenue. The Revenue has been growing by 7.16% on average per year.
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-0.3%
Revenue Next 2Y1.36%
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
MLKN is valuated reasonably with a Price/Earnings ratio of 8.08.
Based on the Price/Earnings ratio, MLKN is valued cheaper than 86.75% of the companies in the same industry.
MLKN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.10.
With a Price/Forward Earnings ratio of 8.82, the valuation of MLKN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MLKN is valued cheaply inside the industry as 92.77% of the companies are valued more expensively.
MLKN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 8.82 |
4.2 Price Multiples
65.06% of the companies in the same industry are more expensive than MLKN, based on the Enterprise Value to EBITDA ratio.
83.13% of the companies in the same industry are more expensive than MLKN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.72 | ||
| EV/EBITDA | 10.78 |
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 4.62%, which is a nice return.
In the last 3 months the price of MLKN has falen by -24.97%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.54, MLKN pays a better dividend. On top of this MLKN pays more dividend than 92.77% 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 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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%
16.32
-0.4 (-2.39%)
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 Cap1.11B
Analysts45.71
Price Target31.11 (90.63%)
Short Float %4.23%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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)0%
PT rev (3m)-3.17%
EPS NQ rev (1m)-41.88%
EPS NQ rev (3m)-41.88%
EPS NY rev (1m)-15.23%
EPS NY rev (3m)-15.23%
Revenue NQ rev (1m)-4.11%
Revenue NQ rev (3m)-4.11%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 8.82 | ||
| P/S | 0.31 | ||
| P/FCF | 8.72 | ||
| P/OCF | 5.1 | ||
| P/B | 0.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.78 |
EPS(TTM)2.02
EY12.38%
EPS(NY)1.85
Fwd EY11.34%
FCF(TTM)1.87
FCFY11.47%
OCF(TTM)3.2
OCFY19.61%
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 | 1.63 |
F-Score7
WACC7.75%
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-0.3%
Revenue Next 2Y1.36%
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%