MillerKnoll, Inc. (MLKN) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: 4.32%
• Average Volume (3M): 714.62K
• Price to Earnings (P/E): 40.9
• Beta (1Y): 0.95
• Revenue Growth: -2.68%
• EPS Growth: -56.16%
• Country: US
• Employees: 10,200
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.42
• Shares Outstanding: 67,746,550
• 10 Day Avg. Volume: 1,048,480
• 30 Day Avg. Volume: 714,620
• PEG Ratio: 0.59
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.35
• Price to Cash Flow (P/CF): 5.70
• P/FCF Ratio: 9.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $30.50
• Price Target Upside: 75.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

MillerKnoll, Inc. faces challenges with declining revenue and profitability, coupled with high leverage, impacting its financial stability. The stock's technical indicators suggest a bearish trend, and valuation metrics indicate overvaluation concerns. Despite positive retail growth and international expansion, significant risks from impairment charges and tariff uncertainties remain. Overall, the stock exhibits potential but requires strategic improvements to enhance its financial health.

MillerKnoll, Inc. Business Overview & Revenue Model

Company Description

MillerKnoll, Inc. researches, designs, manufactures, and distributes interior furnishings worldwide. The company operates in four segments: Americas Contract, International Contract, Global Retail, and Knoll. It offers office furniture products under the Aeron, Mirra, Sayl, Embody, Layout Studio, Imagine Desking System, Ratio, Cosm, Tone, and Generation by Knoll names; and other seating and storage products and ergonomic accessories under the About A Chair, Palissade, Eero Saarinen designs, Barcelona, and the Flo monitor arm names. The company also offers office seating, office furniture systems, other freestanding furniture elements, textiles, leather, felt, home furnishings and related services, casegoods, storage products, as well as residential, education, and healthcare furniture solutions. As of May 28, 2022, the company operated 70 retail studios including 35 operates under the DWR brand, 7 under the HAY brand, 22 Herman Miller stores, 2 Muuto stores, 3 Knoll stores, and a multi-brand Chicago store. Its products are used in institutional, health/science, and residential and other environments; transportation terminals; and industrial and educational settings. The company markets its products through its sales staff, and independent dealers and retailers, as well as e-commerce websites. The company was formerly known as Herman Miller, Inc. and changed its name to MillerKnoll, Inc. in November 2021. MillerKnoll, Inc. was incorporated in 1905 and is headquartered in Zeeland, Michigan.

How the Company Makes Money

MillerKnoll 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's financial performance shows a decline in revenue and profitability, with a weak net profit margin. The balance sheet reveals high leverage with a significant debt-to-equity ratio, raising concerns about financial stability. Cash flow generation is strong relative to net income, but the decline in free cash flow indicates challenges in converting profits into free cash.

Income Statement

MillerKnoll's income statement reveals a declining trend in revenue and profitability. The TTM revenue of $3.597 billion is a decrease from the previous annual revenue of $3.628 billion, representing a negative growth rate. Gross Profit Margin stands at 38.87%, which indicates reasonable efficiency in managing production costs. However, the Net Profit Margin is weak at 0.84%, and the EBIT and EBITDA margins are modest at 1.61% and 1.47%, respectively. These margins suggest challenges in controlling operational and other expenses.

Balance Sheet

The company's balance sheet shows a high Debt-to-Equity Ratio of 1.36, indicating significant leverage. The Return on Equity is relatively low at 2.28%, reflecting modest profitability relative to shareholder funds. With an Equity Ratio of 33.95%, the company has a moderate level of equity financing but faces potential risks from its substantial debt load.

Cash Flow

The cash flow statement highlights a decline in Free Cash Flow from $273.9 million to $56.5 million, indicating a significant decrease in cash available after capital expenditures. The Operating Cash Flow to Net Income Ratio is 2.60, suggesting that cash flow generation is stronger than net profits. However, the Free Cash Flow to Net Income Ratio is 1.88, reflecting the challenges in converting profits into free cash.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.60B	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
58.10M	167.20M	122.30M	199.40M	170.80M	345.70M
	EBITDA
183.00M	331.00M	371.00M	219.80M	327.90M	79.40M
	Net Income Common Stockholders
30.10M	82.30M	42.10M	-19.70M	174.60M	-19.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
169.80M	230.40M	223.50M	230.30M	404.10M	461.00M
	Total Assets
3.90B	4.04B	4.27B	4.51B	2.06B	2.04B
	Total Debt
1.79B	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
2.57B	2.58B	2.73B	2.98B	1.14B	1.35B
	Stockholders Equity
1.25B	1.39B	1.43B	1.43B	849.60M	643.00M
Cash Flow		Free Cash Flow
126.80M	273.90M	79.60M	-106.60M	272.50M	152.80M
	Operating Cash Flow
216.80M	352.30M	162.90M	-11.90M	332.30M	221.80M
	Investing Cash Flow
-85.60M	-86.30M	-76.50M	-1.17B	-59.90M	-168.10M
	Financing Cash Flow
-173.30M	-258.80M	-86.80M	1.04B	-347.70M	244.00M

MillerKnoll, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 17.38 is below the 20-day moving average (MA) of 19.07, below the 50-day MA of 20.75, and below the 200-day MA of 24.05, indicating a bearish trend. The MACD of -0.57 indicates Negative momentum. The RSI at 43.34 is Neutral, neither overbought nor oversold. The STOCH value of 67.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLKN.

MillerKnoll, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCS	68 Neutral	$1.21B	10.52	12.80%	3.75%	0.20%	51.62%
KTB	67 Neutral	$3.20B	13.27	63.68%	3.52%	0.07%	7.19%
WSM	66 Neutral	$17.50B	16.12	53.91%	1.60%	-0.50%	24.11%
LEG	60 Neutral	$970.31M	―	-50.58%	2.78%	-7.27%	-272.76%
Sector *	59 Neutral	$11.20B	10.09	-1.41%	3.96%	1.31%	-16.95%
MLKN	58 Neutral	$1.18B	40.92	2.28%	4.32%	-2.68%	-56.16%
HNI	52 Neutral	$1.98B	14.68	17.42%	3.13%	3.80%	182.70%

MillerKnoll, Inc. Corporate Events

MillerKnoll Announces Organizational Restructuring for 2025

MillerKnoll, Inc. announced changes to its organizational structure and reporting segments effective March 1, 2025, aligning with long-term strategies to enhance visibility into performance in key markets. The new segments are North America Contract, International Contract, and Global Retail. For the third quarter of fiscal year 2025, the company reported a 0.4% increase in consolidated net sales, driven by strong performance in North America and Global Retail. Despite challenges such as unfavorable channel and product mix, the company maintained its earnings expectations, taking proactive steps to improve profitability amidst economic uncertainties. Special charges of $140.2 million were recorded, including restructuring actions and impairment of goodwill.