MILLERKNOLL INC (MLKN)
US6005441000 - Common Stock
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 bad profitability rating. Also its financial health evaluation is rather negative. 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.
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.
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 1.77%, MLKN is in line with its industry, outperforming 56.63% of the companies in the same industry.
MLKN has a Return On Equity (5.20%) which is in line with its industry peers.
The Return On Invested Capital of MLKN (5.29%) is comparable to the rest of the industry.
MLKN had an Average Return On Invested Capital over the past 3 years of 6.45%. This is below the industry average of 10.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 5.2% | ||
| ROIC | 5.29% |
ROA(3y)2.91%
ROA(5y)3.7%
ROE(3y)7.05%
ROE(5y)8.41%
ROIC(3y)6.45%
ROIC(5y)9.57%
1.3 Margins
With a Profit Margin value of 1.96%, MLKN perfoms like the industry average, outperforming 54.22% of the companies in the same industry.
In the last couple of years the Profit Margin of MLKN has declined.
MLKN's Operating Margin of 5.36% is in line compared to the rest of the industry. MLKN outperforms 49.40% of its industry peers.
In the last couple of years the Operating Margin of MLKN has declined.
Looking at the Gross Margin, with a value of 38.47%, MLKN is in the better half of the industry, outperforming 69.88% 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 | 5.36% | ||
| PM (TTM) | 1.96% | ||
| GM | 38.47% |
OM growth 3Y-14.61%
OM growth 5Y-8.85%
PM growth 3YN/A
PM growth 5Y-28.15%
GM growth 3Y-1.51%
GM growth 5Y-0.93%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MLKN is destroying value.
The number of shares outstanding for MLKN remains at a similar level compared to 1 year ago.
The number of shares outstanding for MLKN has been increased compared to 5 years ago.
MLKN has a worse debt/assets ratio than last year.
2.2 Solvency
MLKN has an Altman-Z score of 1.83. 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 1.83, MLKN is in line with its industry, outperforming 42.17% of the companies in the same industry.
The Debt to FCF ratio of MLKN is 4.64, which is a neutral value as it means it would take MLKN, 4.64 years of fcf income to pay off all of its debts.
MLKN has a better Debt to FCF ratio (4.64) than 67.47% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that MLKN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.93, MLKN is not doing good in the industry: 61.45% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 4.64 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.64
WACC8.29%
2.3 Liquidity
A Current Ratio of 1.59 indicates that MLKN should not have too much problems paying its short term obligations.
MLKN has a Current ratio (1.59) which is comparable to the rest of the industry.
MLKN has a Quick Ratio of 1.59. This is a bad value and indicates that MLKN is not financially healthy enough and could expect problems in meeting its short term obligations.
MLKN has a worse Quick ratio (0.95) than 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| 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 -9.90%.
MLKN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.26% yearly.
The Revenue for MLKN has decreased by -12.64% in the past year. This is quite bad
MLKN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.41% yearly.
EPS 1Y (TTM)-9.9%
EPS 3Y-10.38%
EPS 5Y-4.26%
EPS growth Q2Q-16.67%
Revenue 1Y (TTM)-12.64%
Revenue growth 3Y18.01%
Revenue growth 5Y11.41%
Revenue growth Q2Q-11.41%
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 15.44% on average per year.
MLKN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.42% yearly.
EPS Next Y7.1%
EPS Next 2Y10.01%
EPS Next 3Y15.44%
EPS Next 5YN/A
Revenue Next Year-10.73%
Revenue Next 2Y-4.37%
Revenue Next 3Y-1.42%
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 13.95, the valuation of MLKN can be described as correct.
Based on the Price/Earnings ratio, MLKN is valued cheaper than 84.34% of the companies in the same industry.
When comparing the Price/Earnings ratio of MLKN to the average of the S&P500 Index (24.67), we can say MLKN is valued slightly cheaper.
MLKN is valuated reasonably with a Price/Forward Earnings ratio of 11.34.
Based on the Price/Forward Earnings ratio, MLKN is valued cheaply inside the industry as 90.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.02, MLKN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.95 | ||
| Fwd PE | 11.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MLKN is valued a bit cheaper than 75.90% of the companies in the same industry.
91.57% 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 | 6.33 | ||
| EV/EBITDA | 8.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MLKN's earnings are expected to grow with 15.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.96
PEG (5Y)N/A
EPS Next 2Y10.01%
EPS Next 3Y15.44%
5. Dividend
5.1 Amount
MLKN has a Yearly Dividend Yield of 2.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.38, MLKN pays a better dividend. On top of this MLKN pays more dividend than 85.54% of the companies listed in the same industry.
MLKN's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of MLKN has a limited annual growth rate of 1.11%.
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)1.11%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
MLKN pays out 78.01% of its income as dividend. This is not a sustainable payout ratio.
MLKN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP78.01%
EPS Next 2Y10.01%
EPS Next 3Y15.44%
MILLERKNOLL INC
NASDAQ:MLKN (5/1/2024, 12:30:08 PM)
25.39
-0.04 (-0.16%)
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 Cap1.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
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 | 13.95 | ||
| Fwd PE | 11.34 | ||
| 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)1.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 5.2% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.36% | ||
| PM (TTM) | 1.96% | ||
| GM | 38.47% | ||
| 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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.95 | ||
| 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)
Growth
EPS 1Y (TTM)-9.9%
EPS 3Y-10.38%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.64%
Revenue growth 3Y18.01%
Revenue growth 5Y
Revenue growth 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