MILLERKNOLL INC (MLKN) Stock Fundamental Analysis
NASDAQ:MLKN - Nasdaq - US6005441000 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to MLKN. MLKN was compared to 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MLKN was profitable.
MLKN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MLKN reported negative net income in multiple years.
Of the past 5 years MLKN 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.77%, MLKN is in line with its industry, outperforming 48.19% of the companies in the same industry.
With a Return On Equity value of 2.40%, MLKN perfoms like the industry average, outperforming 51.81% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.71%, MLKN is doing worse than 61.45% 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 11.35%.
| 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
MLKN has a Profit Margin (0.84%) which is in line with its industry peers.
MLKN's Profit Margin has declined in the last couple of years.
MLKN has a worse Operating Margin (1.73%) than 60.24% of its industry peers.
MLKN's Operating Margin has declined in the last couple of years.
The Gross Margin of MLKN (38.87%) is better than 62.65% 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
MLKN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MLKN has less shares outstanding
Compared to 5 years ago, MLKN has more shares outstanding
The debt/assets ratio for MLKN is higher compared to a year ago.
2.2 Solvency
MLKN has an Altman-Z score of 1.64. This is a bad value and indicates that MLKN is not financially healthy and even has some risk of bankruptcy.
MLKN has a worse Altman-Z score (1.64) than 62.65% of its industry peers.
MLKN has a debt to FCF ratio of 10.50. This is a negative value and a sign of low solvency as MLKN would need 10.50 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.50, MLKN perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
MLKN has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.02, MLKN is not doing good in the industry: 63.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 10.5 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.21
WACC7.98%
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 in line compared to the rest of the industry. MLKN outperforms 57.83% of its industry peers.
A Quick Ratio of 1.05 indicates that MLKN should not have too much problems paying its short term obligations.
MLKN's Quick ratio of 1.05 is on the low side compared to the rest of the industry. MLKN is outperformed by 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
MLKN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.99%, 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.
MLKN shows a decrease in Revenue. In the last year, the revenue decreased by -2.68%.
The Revenue has been growing slightly by 7.16% on average over the past years.
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
Based on estimates for the next years, MLKN will show a small growth in Earnings Per Share. The EPS will grow by 5.73% on average per year.
MLKN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.90% yearly.
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
Based on the Price/Earnings ratio of 8.33, the valuation of MLKN can be described as reasonable.
MLKN's Price/Earnings ratio is rather cheap when compared to the industry. MLKN is cheaper than 87.95% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, MLKN is valued rather cheaply.
MLKN is valuated reasonably with a Price/Forward Earnings ratio of 9.09.
92.77% of the companies in the same industry are more expensive than MLKN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MLKN to the average of the S&P500 Index (22.20), we can say MLKN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLKN is valued a bit cheaper than the industry average as 65.06% of the companies are valued more expensively.
MLKN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MLKN is cheaper than 86.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.99 | ||
| EV/EBITDA | 11 |
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
With a Yearly Dividend Yield of 4.55%, MLKN is a good candidate for dividend investing.
In the last 3 months the price of MLKN has falen by -20.93%. 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 2.56, MLKN pays a better dividend. On top of this MLKN pays more dividend than 92.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, MLKN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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%
NASDAQ:MLKN (5/28/2025, 12:50:50 PM)
16.83
-0.17 (-1%)
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 Cap1.14B
Analysts45.71
Price Target31.11 (84.85%)
Short Float %4.56%
Short Ratio4.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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)-2.42%
EPS NQ rev (3m)-43.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.23%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-4.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.33 | ||
| Fwd PE | 9.09 | ||
| P/S | 0.32 | ||
| P/FCF | 8.99 | ||
| P/OCF | 5.26 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11 |
EPS(TTM)2.02
EY12%
EPS(NY)1.85
Fwd EY11%
FCF(TTM)1.87
FCFY11.12%
OCF(TTM)3.2
OCFY19.01%
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 | 1.64 |
F-Score7
WACC7.98%
ROIC/WACC0.21
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 Year44.33%
EBIT Next 3Y17.61%
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%