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MillerKnoll, Inc. (MLKN)
NASDAQ:MLKN
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MillerKnoll, Inc.
(NASDAQ:MLKN)60Neutral
MillerKnoll, Inc. (MLKN) vs. S&P 500 (SPY)
Market Cap
$1.43B
Dividend Yield3.58%
Average Volume (3M)463.09K
Price to Earnings (P/E)23.0
Beta (1Y)0.91
Revenue Growth-5.66%
EPS Growth35.33%
CountryUS
Employees10,200
SectorConsumer Cyclical
Sector Strength53
IndustryHome and Homeware
Share Statistics
EPS (TTM)0.91
Shares Outstanding68,158,990
10 Day Avg. Volume479,923
30 Day Avg. Volume463,090
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)N/A
Price to Sales (P/S)0.40
Price to Cash Flow (P/CF)6.50
P/FCF Ratio10.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
MillerKnoll, Inc. Business Overview & Revenue Model
Company DescriptionMillerKnoll, Inc. (MLKN) is a leading global design company operating in the furniture and home decor sector. The company is known for its innovative and high-quality products that include office furniture, seating, storage solutions, and interior furnishings. With a diverse portfolio of brands, MillerKnoll caters to a variety of markets including corporate workplaces, healthcare facilities, and residential spaces, ensuring a broad reach and influence in the design industry.
How the Company Makes MoneyMillerKnoll generates revenue primarily through the design, manufacturing, and sale of furniture and related products. The company operates a multi-channel distribution strategy, selling its products through a combination of direct sales teams, independent dealers, and retail partners. Key revenue streams include office furniture sales, which target corporate clients looking to furnish large office spaces, and residential sales, which appeal to individual consumers seeking high-quality home furnishings. Additionally, MillerKnoll benefits from strategic partnerships and collaborations with designers and architects, enhancing its product offerings and market reach. The company's global presence and strong brand portfolio further contribute to its earnings by allowing it to tap into diverse markets and meet a wide range of consumer needs.
MillerKnoll, Inc. Financial Statement Overview
Summary
MillerKnoll, Inc. maintains a stable financial position with moderate profitability and operational efficiency. While revenue growth has declined, the balance sheet's stability and strong cash flow generation provide a solid foundation for future growth. The company's moderate leverage and consistent equity ratio show a balanced financial approach, though high debt levels pose potential risks.Income Statement
The income statement reflects moderate performance with a gross profit margin of 39% and a net profit margin of 1.8% in the TTM. Revenue growth has been declining, with a significant drop of 12% from 2022 to 2023, indicating challenges in sustaining sales growth. However, the EBIT margin of 5.4% and EBITDA margin of 6.8% suggest operational efficiency, although profitability remains a concern with declining net income.65
Positive
Balance Sheet
The balance sheet is stable with a debt-to-equity ratio of 1.33, indicating moderate leverage. The return on equity stands at 4.7%, reflecting modest returns to shareholders. An equity ratio of 34.3% suggests a balanced approach in financing assets through equity. Overall, the company maintains a solid financial position despite high debt levels.72
Positive
Cash Flow
Cash flow analysis shows a decline in free cash flow from the previous period, with a current free cash flow of $100.4 million. The operating cash flow to net income ratio of 2.14 indicates strong cash generation relative to earnings. However, the free cash flow to net income ratio reflects moderate efficiency in converting profits into cash flow.68
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.59B | 3.63B | 4.09B | 3.95B | 2.47B | 2.49B | Gross Profit |
| 1.40B | 1.42B | 1.43B | 1.35B | 949.20M | 910.70M | EBIT |
| 192.40M | 167.20M | 122.30M | 199.40M | 170.80M | 345.70M | EBITDA |
| 354.30M | 331.00M | 371.00M | 219.80M | 327.90M | 79.40M | Net Income Common Stockholders |
| 65.00M | 82.30M | 42.10M | -19.70M | 174.60M | -19.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 221.10M | 230.40M | 223.50M | 230.30M | 404.10M | 461.00M | Total Assets |
| 4.04B | 4.04B | 4.27B | 4.51B | 2.06B | 2.04B | Total Debt |
| 1.84B | 1.76B | 1.87B | 1.89B | 474.00M | 770.10M | Net Debt |
| 1.62B | 1.53B | 1.65B | 1.66B | 77.60M | 316.10M | Total Liabilities |
| 2.65B | 2.58B | 2.73B | 2.98B | 1.14B | 1.35B | Stockholders Equity |
| 1.31B | 1.39B | 1.43B | 1.43B | 849.60M | 643.00M |
| Cash Flow | Free Cash Flow | ||||
| 131.90M | 273.90M | 79.60M | -106.60M | 272.50M | 152.80M | Operating Cash Flow |
| 215.30M | 352.30M | 162.90M | -11.90M | 332.30M | 221.80M | Investing Cash Flow |
| -89.80M | -86.30M | -76.50M | -1.17B | -59.90M | -168.10M | Financing Cash Flow |
| -121.90M | -258.80M | -86.80M | 1.04B | -347.70M | 244.00M |
MillerKnoll, Inc. Technical Analysis
Negative
20.94
Price Trends
21.86
Negative
22.94
Negative
24.72
Negative
Market Momentum
-0.38
Positive
41.52
Neutral
16.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLKN, the sentiment is Negative. The current price of 20.94 is below the 20-day moving average (MA) of 21.76, below the 50-day MA of 21.86, and below the 200-day MA of 24.72, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 16.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLKN.
MillerKnoll, Inc. Risk Analysis
MillerKnoll, Inc. disclosed 21 risk factors in its most recent earnings report. MillerKnoll, Inc. reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MillerKnoll, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $23.19B | 22.28 | 58.86% | 1.21% | -5.00% | 17.77% | |
67 Neutral | $3.38B | 14.02 | 63.68% | 3.34% | 0.07% | 7.19% | |
64 Neutral | $1.33B | 12.28 | 12.23% | 3.41% | -1.03% | 52.27% | |
60 Neutral | $1.43B | 23.01 | 4.76% | 3.58% | -5.66% | 35.33% | |
60 Neutral | $1.16B | ― | -50.58% | 7.08% | -7.28% | -272.76% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
52 Neutral | $2.12B | 15.65 | 17.42% | 2.93% | 3.80% | 182.70% |
* Consumer Cyclical Sector Average
Performance Comparison
MLKN
MillerKnoll, Inc.
20.94
-7.80
-27.14%
HNI
HNI
45.01
3.75
9.09%
LEG
Leggett & Platt
8.62
-11.31
-56.75%
SCS
Steelcase
11.73
-0.67
-5.40%
WSM
Williams-Sonoma
188.41
71.96
61.79%
KTB
Kontoor Brands
60.47
1.07
1.80%
MillerKnoll, Inc. Earnings Call Summary
Earnings Call Date: Dec 18, 2024 | % Change Since: -13.18% | Next Earnings Date: Mar 26, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed outlook with strong performance in specific segments like Americas Contract and Retail during promotional periods, alongside international expansion and sustainability achievements. However, challenges such as slower-than-expected order recovery, declines in international orders, and potential tariff impacts tempered the optimism.Highlights
Strong Performance in Americas Contract Segment
The Americas contract segment showed a 6.2% organic increase in net sales year-over-year, marking the third consecutive period of order growth, with an operating margin increase to 10.2%.
Retail Segment Success During Promotional Period
The retail segment experienced a mid-single-digit year-over-year increase in orders during the Black Friday holiday cyber promotional period, showing strong performance across all product categories.
International Expansion Efforts
MillerKnoll opened a flagship in London, doubling client appointments compared to last year, and a new fulfillment center in Belgium to enhance efficiency in Europe.
Sustainability Initiatives
Announced elimination of added PFAS from North American product portfolio by May 2025 and globally by May 2027, along with launching more sustainable product options.
Improved Marketing Economics and Initiatives
Retail marketing showed a 5% improvement in return on ad spend, with selling initiatives driving average order values 10% above last year.
Lowlights
Slower Order Recovery
Overall orders have recovered at a slower pace than expected, impacting the guidance for the balance of the year.
International Segment Order Decline
International Contract and Specialty segment orders decreased by 6.5% on a reported basis and over 7% organically.
Retail Segment Sales and Order Decrease
Retail segment net sales decreased by 5.3% on a reported basis and 4% organically, with new orders down 9.6% year-over-year.
Tariff Concerns
Potential impacts from new tariff proposals could affect manufacturing and profitability, particularly in China and Canada.
Company Guidance
During the MillerKnoll Q2 2025 earnings call, management provided guidance that reflects cautious optimism for the remainder of the fiscal year despite a challenging demand environment. Consolidated net sales for the second quarter were reported at $970 million, a 2.2% increase year-over-year, while orders stood at $922 million, down 2.3% from the previous year. The company maintained a gross margin of 38.8%, with the Americas Contract segment showing promising growth, with net sales up 6.2% organically. However, the International Contract and Specialty segment faced a 6.5% decrease in orders. Looking ahead, MillerKnoll expects net sales for Q3 to range between $903 million and $943 million, with adjusted diluted earnings per share projected between $0.41 and $0.47. The full-year adjusted earnings per share guidance has been narrowed to $2.11 to $2.17, reflecting a tempered outlook due to slower-than-anticipated order rates in Q2. Despite these challenges, the company remains encouraged by positive leading indicators, particularly in its Americas Contract business and retail segment, which saw a mid-single-digit increase in orders during the Black Friday period.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.