Miller Industries (MLR) AI Stock Analysis

• Market Cap: $460.55M
• Dividend Yield: 1.92%
• Average Volume (3M): 150.34K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.10
• Revenue Growth: 9.03%
• EPS Growth: 8.89%
• Country: US
• Employees: 1,690
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 5.49
• Shares Outstanding: 11,459,278
• 10 Day Avg. Volume: 110,529
• 30 Day Avg. Volume: 150,341
• PEG Ratio: 0.83
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.39
• Price to Cash Flow (P/CF): -10.40
• P/FCF Ratio: 0.00
• 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: $71.00
• Price Target Upside: 76.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Miller Industries shows strong financial performance with solid revenue growth and profitability, contributing significantly to its score. The valuation is attractive with a low P/E ratio and reasonable dividend yield. However, technical indicators suggest caution due to recent downward momentum. Mixed results from the earnings call, including record profits but also Q4 challenges, further influence the assessment. Overall, the company is well-positioned financially, but near-term market conditions and operational hurdles must be navigated carefully.

Positive Factors

Demand Trends

Underlying demand trends remain strong for the tow truck market, and earnings power is expected to move higher as near-term headwinds are overcome.

Financial Management

MLR has a fantastic capital-allocation track record, avoiding heavy debt, growing dividends, and having a share repurchase program with targeted additional capacity.

Market Leadership

MLR is the category leader in tow trucks and related equipment, which is an essential, less-cyclical part of the Machinery & Truck Equipment landscape.

Negative Factors

Earnings Miss

The stock declined ~15% after the significant earnings miss out of left field, as well as challenging 2025 guidance.

Inventory Challenges

Challenging 2025 guidance was the result of mix headwinds – their dealers had excessive chassis inventory, resulting in an overhang that needs to be worked down.

Investor Attention

A lack of buy-side and sell-side attention has weighed on the stock for quite some time, despite being a less-cyclical company with a 14% revenue CAGR since 1991.

Miller Industries Business Overview & Revenue Model

Company Description

Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flatbed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other related applications. The company markets its products under the Century, Challenger, Holmes, Champion, Eagle, Titan, Jige, Boniface, Vulcan, and Chevron brands. Miller Industries, Inc. sells its products through independent distributors in the United States, Canada, Mexico, Europe, the Pacific Rim, the Middle East, South America, and Africa; and through prime contractors to governmental entities. The company was incorporated in 1990 and is based in Ooltewah, Tennessee.

How the Company Makes Money

Miller Industries generates revenue primarily through the design, manufacturing, and sale of towing and recovery equipment. The company offers a diverse product line that includes car carriers, wreckers, and rotators, serving customers across different segments such as towing companies, automotive dealerships, and government entities. Key revenue streams include direct sales to end-users, as well as sales through a network of distributors and dealers. Additionally, Miller Industries may engage in strategic partnerships or collaborations with other companies to enhance its product offerings and expand its market reach. Factors such as industry demand, technological advancements, and regulatory changes can significantly influence the company's earnings.

Miller Industries Financial Statement Overview

Summary

Miller Industries demonstrates strong revenue growth and profitability with a robust balance sheet indicating low leverage and financial stability. However, liquidity issues due to cash flow challenges could affect long-term sustainability.

Income Statement

Miller Industries has shown a strong revenue growth rate of 9.03% from 2023 to 2024. The gross profit margin stands at 13.58%, with a net profit margin of 5.05% indicating healthy profitability. The EBIT margin is 6.72%, and the EBITDA margin is 6.72%, showcasing stable operating performance. The overall trend in revenues and profitability is positive, reflecting robust demand in their industry.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.16, indicating low leverage and financial stability. The return on equity (ROE) is 15.83%, demonstrating effective use of equity to generate profits. The equity ratio is 60.13%, highlighting a strong equity base relative to total assets. However, the declining cash position could pose liquidity risks if not addressed.

Cash Flow

Free cash flow has turned positive in 2024, marking a significant improvement from the previous negative cash flow. The operating cash flow to net income ratio is 0.27, indicating some pressure in converting income to cash. The free cash flow to net income ratio is 0.02, suggesting that while there is improvement, the cash flow position needs further strengthening.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.26B	1.15B	848.46M	717.48M	651.29M
	Gross Profit
170.81M	151.85M	82.42M	69.85M	78.36M
	EBIT
84.48M	78.77M	17.35M	12.09M	29.71M
	EBITDA
84.48M	93.00M	41.35M	34.66M	48.24M
	Net Income Common Stockholders
63.49M	58.29M	20.35M	16.25M	29.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.34M	29.91M	40.15M	54.33M	57.52M
	Total Assets
667.01M	647.21M	501.43M	438.85M	398.41M
	Total Debt
65.55M	60.83M	45.91M	1.25M	1.51M
	Net Debt
41.21M	30.92M	5.75M	-53.09M	-56.02M
	Total Liabilities
265.99M	299.29M	207.97M	150.31M	115.96M
	Stockholders Equity
401.03M	347.92M	293.46M	288.54M	282.45M
Cash Flow		Free Cash Flow
1.52M	-1.13M	-48.09M	6.12M	43.21M
	Operating Cash Flow
16.87M	10.96M	-19.16M	15.27M	60.71M
	Investing Cash Flow
-15.27M	-29.07M	-28.93M	-9.06M	-17.22M
	Financing Cash Flow
-6.62M	6.75M	36.77M	-8.24M	-13.63M

Miller Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.19
• 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 MLR, the sentiment is Negative. The current price of 40.19 is below the 20-day moving average (MA) of 41.70, below the 50-day MA of 49.62, and below the 200-day MA of 60.46, indicating a bearish trend. The MACD of -2.50 indicates Negative momentum. The RSI at 35.35 is Neutral, neither overbought nor oversold. The STOCH value of 53.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLR.

Miller Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MLR	73 Outperform	$460.55M	7.34	16.96%	1.92%	9.03%	8.89%
AXL	66 Neutral	$395.23M	11.61	5.79%	―	0.75%	―
HZO	63 Neutral	$426.90M	7.89	5.75%	―	-1.73%	-40.39%
Sector *	60 Neutral	$6.53B	11.32	3.32%	4.27%	2.43%	-20.55%
MNRO	58 Neutral	$418.09M	23.63	3.02%	8.02%	-5.25%	-42.25%
LINC	57 Neutral	$542.76M	54.11	5.73%	―	16.40%	-62.64%
MYE	57 Neutral	$352.82M	49.14	2.53%	5.71%	2.86%	-85.38%