MillerKnoll (MLKN) AI Stock Analysis

• Market Cap: $1.34B
• Dividend Yield: 3.8%
• Average Volume (3M): 536.90K
• Price to Earnings (P/E): 46.4
• Beta (1Y): 1.02
• Revenue Growth: -2.68%
• EPS Growth: -56.16%
• Country: US
• Employees: 10,200
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.60
• Shares Outstanding: 67,746,550
• 10 Day Avg. Volume: 422,822
• 30 Day Avg. Volume: 536,902
• PEG Ratio: 0.51
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.62
• Enterprise Value/Market Cap: 2.21
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 2.11
• Enterprise Value/Ebitda: 2.24
• 1Y Price Target: $18.00
• Price Target Upside: -8.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $21.00 ▲(6.82%Upside)

MillerKnoll's overall stock score reflects strong earnings call performance and positive technical indicators, offset by financial challenges and a high P/E ratio. The company benefits from strategic growth plans but must address leverage and margin pressures to enhance financial health.

Positive Factors

Earnings

MillerKnoll reported strong 4Q25 results with revenue, EBITDA, and EPS coming in well ahead of street estimates.

Order Growth

Order growth rates jumped as potential pull-forward demand raced to beat impending tariff related pricing actions.

Revenue Growth

North America Contract shines with revenue up approximately 12.5% year-over-year, reinforcing the belief that demand is out there.

Negative Factors

Margin Pressures

Near-term margin pressures are expected with current tariff levels impacting costs and potential short-term setbacks in gross and operating margins.

Tariff Uncertainty

Tariff uncertainty still represents the greatest obstacle for both the industry and customers.

MillerKnoll Business Overview & Revenue Model

Company Description

MillerKnoll, Inc. (MLKN) is a leading global design company operating in the furniture manufacturing industry. The company was formed through the merger of Herman Miller and Knoll, both of which are iconic brands in the design and furnishing sectors. MillerKnoll offers a wide range of products, including office furniture, seating, textiles, and related products, catering to both commercial and residential markets. The company is known for its innovative design, sustainable practices, and high-quality products that enhance spaces and improve how people work and live.

How the Company Makes Money

MillerKnoll generates revenue primarily through the sale of its furniture and related products. The company's revenue streams are diversified across multiple sectors, including office, healthcare, education, and residential markets. A significant portion of its income comes from large-scale projects and corporate contracts, where it supplies office furniture systems and solutions. Additionally, MillerKnoll benefits from its strong brand portfolio and distribution network, which includes direct-to-consumer sales, retail partnerships, and a network of authorized dealers and distributors. The company also invests in research and development to innovate and expand its product offerings, which helps maintain its competitive edge and market share. Strategic partnerships and acquisitions play a crucial role in its growth strategy, allowing it to leverage synergies and expand its market reach.

MillerKnoll Financial Statement Overview

Summary

MillerKnoll's financial performance is mixed, with declining revenue and profitability. The high leverage on the balance sheet and decreasing free cash flow pose challenges, though operating cash generation remains relatively strong.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	3.63B	4.09B	3.95B	2.47B	2.49B
Gross Profit	1.42B	1.43B	1.35B	949.20M	910.70M
EBITDA	331.00M	371.00M	219.80M	327.90M	79.40M
Net Income	82.30M	42.10M	-19.70M	174.60M	-19.40M
Balance Sheet
Total Assets	4.04B	4.27B	4.51B	2.06B	2.04B
Cash, Cash Equivalents and Short-Term Investments	230.40M	223.50M	230.30M	404.10M	461.00M
Total Debt	1.76B	1.87B	1.89B	474.00M	770.10M
Total Liabilities	2.58B	2.73B	2.98B	1.14B	1.35B
Stockholders Equity	1.39B	1.43B	1.43B	849.60M	643.00M
Cash Flow
Free Cash Flow	273.90M	79.60M	-106.60M	272.50M	152.80M
Operating Cash Flow	352.30M	162.90M	-11.90M	332.30M	221.80M
Investing Cash Flow	-86.30M	-76.50M	-1.17B	-59.90M	-168.10M
Financing Cash Flow	-258.80M	-86.80M	1.04B	-347.70M	244.00M

MillerKnoll Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLKN, the sentiment is Neutral. The current price of 19.66 is above the 20-day moving average (MA) of 19.47, above the 50-day MA of 17.95, and below the 200-day MA of 20.56, indicating a neutral trend. The MACD of 0.77 indicates Positive momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 27.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MLKN.

MillerKnoll Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TILE	72 Outperform	$1.25B	14.73	18.15%	0.19%	5.41%	44.50%
ETD	71 Outperform	$725.26M	12.64	12.09%	5.47%	-6.32%	-18.35%
LZB	70 Outperform	$1.52B	15.81	9.84%	2.37%	3.04%	-16.49%
AMWD	69 Neutral	$772.01M	8.18	10.89%	―	-7.47%	-9.07%
MBC	64 Neutral	$1.41B	14.47	8.02%	―	1.30%	-44.70%
MLKN	63 Neutral	$1.34B	46.43	2.28%	3.80%	-2.68%	-56.16%
Sector *	56 Neutral	HK$25.30B	3.94	-2.03%	6.16%	-0.31%	-67.70%

MillerKnoll 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.