MILLERKNOLL INC (MLKN) Stock Fundamental Analysis
NASDAQ:MLKN - US6005441000 - Common Stock
21.26 USD
-0.26 (-1.21%)
21.26 USD
0 (0%)
Taking everything into account, MLKN scores 4 out of 10 in our fundamental rating. MLKN was compared to 84 industry peers in the Commercial Services & Supplies industry. MLKN has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
MLKN has a Return On Assets (-0.93%) which is comparable to the rest of the industry.
MLKN has a Return On Equity of -2.89%. This is comparable to the rest of the industry: MLKN outperforms 41.67% of its industry peers.
MLKN's Return On Invested Capital of 5.13% is in line compared to the rest of the industry. MLKN outperforms 53.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MLKN is significantly below the industry average of 10.78%.
The last Return On Invested Capital (5.13%) for MLKN is above the 3 year average (5.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.93% | ||
| ROE | -2.89% | ||
| ROIC | 5.13% |
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 has a Operating Margin (5.32%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MLKN has declined.
MLKN has a Gross Margin of 38.76%. This is in the better half of the industry: MLKN outperforms 65.48% 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 | 5.32% | ||
| PM (TTM) | N/A | ||
| GM | 38.76% |
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.
The number of shares outstanding for MLKN has been reduced compared to 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 1.78, we must say that MLKN is in the distress zone and has some risk of bankruptcy.
MLKN has a worse Altman-Z score (1.78) than 60.71% of its industry peers.
MLKN has a debt to FCF ratio of 13.04. This is a negative value and a sign of low solvency as MLKN would need 13.04 years to pay back of all of its debts.
MLKN has a Debt to FCF ratio of 13.04. This is comparable to the rest of the industry: MLKN outperforms 50.00% of its industry peers.
MLKN has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MLKN (1.03) is worse than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 13.04 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.62
WACC8.21%
2.3 Liquidity
MLKN has a Current Ratio of 1.58. This is a normal value and indicates that MLKN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.58, MLKN perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that MLKN may have some problems paying its short term obligations.
MLKN has a Quick ratio of 0.94. This is in the lower half of the industry: MLKN underperforms 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
MLKN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.25%.
The Earnings Per Share has been decreasing by -5.37% on average over the past years.
Looking at the last year, MLKN shows a small growth in Revenue. The Revenue has grown by 1.14% in the last 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)-6.25%
EPS 3Y1.59%
EPS 5Y-5.37%
EPS Q2Q%-10.45%
Revenue 1Y (TTM)1.14%
Revenue growth 3Y-2.39%
Revenue growth 5Y8.1%
Sales Q2Q%8.2%
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 9.21% on average per year.
The Revenue is expected to grow by 3.85% on average over the next years.
EPS Next Y-6.37%
EPS Next 2Y9.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.06%
Revenue Next 2Y3.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 10.90, the valuation of MLKN can be described as reasonable.
Based on the Price/Earnings ratio, MLKN is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MLKN to the average of the S&P500 Index (27.17), we can say MLKN is valued rather cheaply.
MLKN is valuated reasonably with a Price/Forward Earnings ratio of 11.64.
MLKN's Price/Forward Earnings ratio is rather cheap when compared to the industry. MLKN is cheaper than 85.71% of the companies in the same industry.
MLKN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLKN is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MLKN indicates a somewhat cheap valuation: MLKN is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.18 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.21%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MLKN has a Yearly Dividend Yield of 3.60%.
Compared to an average industry Dividend Yield of 2.36, MLKN pays a better dividend. On top of this MLKN pays more dividend than 90.48% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
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
MLKN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
MLKN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-140.11%
EPS Next 2Y9.21%
EPS Next 3YN/A
21.26
-0.26 (-1.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.99%
Inst Owner ChangeN/A
Ins Owners1.22%
Ins Owner Change24.08%
Market Cap1.44B
Analysts43.33
Price Target38.76 (82.31%)
Short Float %4.12%
Short Ratio5.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
Yearly Dividend0.75
Dividend Growth(5Y)3.87%
DP-140.11%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.37%
Min EPS beat(2)-1.96%
Max EPS beat(2)34.71%
EPS beat(4)2
Avg EPS beat(4)5.54%
Min EPS beat(4)-12.31%
Max EPS beat(4)34.71%
EPS beat(8)6
Avg EPS beat(8)15.64%
EPS beat(12)10
Avg EPS beat(12)16.18%
EPS beat(16)12
Avg EPS beat(16)12.67%
Revenue beat(2)1
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-6.51%
Max Revenue beat(2)3.2%
Revenue beat(4)1
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-6.51%
Max Revenue beat(4)3.2%
Revenue beat(8)2
Avg Revenue beat(8)-2.8%
Revenue beat(12)3
Avg Revenue beat(12)-2.41%
Revenue beat(16)4
Avg Revenue beat(16)-1.02%
PT rev (1m)0%
PT rev (3m)24.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 11.64 | ||
| P/S | 0.39 | ||
| P/FCF | 14.18 | ||
| P/OCF | 6.89 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.72 |
EPS(TTM)1.95
EY9.17%
EPS(NY)1.83
Fwd EY8.59%
FCF(TTM)1.5
FCFY7.05%
OCF(TTM)3.09
OCFY14.52%
SpS54.12
BVpS18.81
TBVpS-8.21
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.93% | ||
| ROE | -2.89% | ||
| ROCE | 6.02% | ||
| ROIC | 5.13% | ||
| ROICexc | 5.45% | ||
| ROICexgc | 13.64% | ||
| OM | 5.32% | ||
| PM (TTM) | N/A | ||
| GM | 38.76% | ||
| FCFM | 2.77% |
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%
ROICexcg growth 3Y74.29%
ROICexcg 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 Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 13.04 | ||
| Debt/EBITDA | 3.9 | ||
| Cap/Depr | 76.58% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 2.83 | ||
| Cash Conversion | 62.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.78 |
F-Score5
WACC8.21%
ROIC/WACC0.62
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)-6.25%
EPS 3Y1.59%
EPS 5Y-5.37%
EPS Q2Q%-10.45%
EPS Next Y-6.37%
EPS Next 2Y9.21%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.14%
Revenue growth 3Y-2.39%
Revenue growth 5Y8.1%
Sales Q2Q%8.2%
Revenue Next Year4.06%
Revenue Next 2Y3.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-9.08%
EBIT growth 3Y69.93%
EBIT growth 5Y0.2%
EBIT Next Year57.11%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-62.87%
FCF growth 3YN/A
FCF growth 5Y-7.82%
OCF growth 1Y-40.59%
OCF growth 3YN/A
OCF growth 5Y-1.15%