Miller Industries (MLR) AI Stock Analysis

• Market Cap: $440.34M
• Dividend Yield: 1.96%
• Average Volume (3M): 80.44K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.12
• Revenue Growth: -36.91%
• EPS Growth: -56.72%
• Country: US
• Employees: 1,690
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.27
• Shares Outstanding: 11,431,416
• 10 Day Avg. Volume: 73,243
• 30 Day Avg. Volume: 80,443
• PEG Ratio: 1.34
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 493.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: 8.75
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.54
• Revenue Forecast (FY): $783.65M

• Rating: 61 Neutral
• Price Target: $42.00 ▲(2.56% Upside)

Miller Industries faces significant challenges with declining revenue and cash flow issues, impacting its financial performance. The technical indicators suggest a bearish trend, while the valuation remains reasonable. The earnings call highlighted strategic efforts to manage costs and inventory, but macroeconomic uncertainties and revenue declines weigh heavily on the outlook.

Positive Factors

Debt Reduction

A significant reduction in debt enhances financial flexibility and reduces interest expenses, strengthening the company's long-term financial health.

Gross Profit Margin Improvement

Improved gross profit margin indicates better cost management and product mix, enhancing profitability and operational efficiency over time.

Military Market Outlook

Growing demand for military vehicles presents a potential revenue stream, supporting long-term growth and diversification of market opportunities.

Negative Factors

Revenue Decline

A significant decline in revenue impacts financial performance and may hinder the company's ability to invest in growth and innovation.

Cash Flow Challenges

Challenges in cash flow generation can limit the company's ability to fund operations and strategic initiatives, affecting long-term sustainability.

Headcount Reduction

Workforce reductions may impact operational capacity and morale, potentially affecting productivity and long-term competitive positioning.

Miller Industries Business Overview & Revenue Model

Company Description

Miller Industries, Inc. (MLR) is a leading manufacturer of towing and recovery equipment, specializing in the design, production, and distribution of a wide range of truck-mounted recovery systems, including wrecker bodies and trailers. The company operates primarily in the automotive industry, serving a diverse customer base that includes towing companies, municipalities, and emergency services. With a commitment to quality and innovation, Miller Industries also offers a variety of accessories and parts to enhance their equipment's functionality.

How the Company Makes Money

Miller Industries generates revenue primarily through the sale of its towing and recovery equipment, which includes wrecker bodies, trailers, and related accessories. The company's revenue model is built on direct sales to customers, as well as through a network of dealers and distributors. Key revenue streams include the manufacturing and sale of specialized recovery vehicles and equipment, aftermarket parts, and service contracts. Additionally, Miller Industries benefits from partnerships with other automotive and recovery service companies, which help expand its market reach and enhance its product offerings. The company also engages in export activities, selling its products internationally, which contributes to its overall earnings.

Miller Industries Financial Statement Overview

Summary

Miller Industries shows stability in profitability and a strong balance sheet with low leverage. However, declining revenue and cash flow challenges highlight areas that need attention. The company should focus on reversing the revenue decline and improving cash flow generation to enhance its financial health.

Income Statement

Miller Industries shows a mixed performance in its income statement. The TTM data reveals a decline in revenue growth rate by 13.9%, indicating potential challenges in sales. However, the company maintains a stable gross profit margin of 14.8% and a net profit margin of 4.4%, which are respectable for the industry. The EBIT and EBITDA margins are moderate, reflecting operational efficiency but also suggesting room for improvement.

Balance Sheet

The balance sheet of Miller Industries is relatively strong, with a low debt-to-equity ratio of 0.13, indicating conservative leverage. The return on equity (ROE) is 10.5%, showing decent profitability for shareholders. The equity ratio is healthy, suggesting a solid capital structure. However, the slight decrease in stockholders' equity over time could be a point of concern.

Cash Flow

Cash flow analysis reveals some challenges, with a negative free cash flow growth rate of 17.3% in the TTM period. The operating cash flow to net income ratio is 0.33, indicating that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is 0.70, suggesting that while the company is generating cash, it may not be sufficient to support all its financial obligations and growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	840.26M	1.26B	1.15B	848.46M	717.48M	651.29M
Gross Profit	127.32M	170.81M	151.85M	82.42M	69.85M	78.36M
EBITDA	54.37M	98.55M	93.00M	41.35M	34.66M	48.24M
Net Income	30.14M	63.49M	58.29M	20.35M	16.25M	29.83M
Balance Sheet
Total Assets	604.34M	667.01M	647.21M	501.43M	437.64M	398.41M
Cash, Cash Equivalents and Short-Term Investments	38.40M	24.34M	29.91M	40.15M	54.33M	57.52M
Total Debt	45.36M	65.55M	60.83M	45.91M	1.25M	1.51M
Total Liabilities	183.69M	265.99M	299.29M	207.97M	153.03M	115.96M
Stockholders Equity	420.65M	401.03M	347.92M	293.46M	284.62M	282.45M
Cash Flow
Free Cash Flow	28.27M	1.52M	-1.13M	-48.09M	6.12M	43.21M
Operating Cash Flow	38.14M	16.87M	10.96M	-19.16M	15.27M	60.71M
Investing Cash Flow	-8.61M	-15.27M	-29.07M	-28.93M	-9.06M	-17.22M
Financing Cash Flow	-32.80M	-6.62M	6.75M	36.77M	-8.24M	-13.63M

Miller Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 40.95 is above the 20-day moving average (MA) of 39.95, above the 50-day MA of 40.02, and below the 200-day MA of 44.64, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 12.98 is Positive, 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
PLOW	68 Neutral	$718.65M	17.79	15.29%	3.76%	9.99%	-23.93%
AXL	66 Neutral	$770.34M	19.28	6.01%	―	-6.02%	42.35%
SMP	65 Neutral	$836.63M	12.38	10.49%	3.29%	23.96%	11.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLR	61 Neutral	$440.34M	14.83	7.39%	1.96%	-36.91%	-56.72%
CPS	56 Neutral	$509.00M	15.97	―	―	-0.53%	―
SRI	54 Neutral	$169.78M	―	-12.26%	―	-4.91%	-331.53%

Miller Industries Corporate Events

Miller Industries Reports Q3 2025 Earnings Decline

Miller Industries, Inc., headquartered in Chattanooga, Tennessee, is the world’s largest manufacturer of towing and recovery equipment, marketing its products under well-known brands such as Century, Vulcan, and Holmes.

Miller Industries’ Earnings Call: Challenges and Resilience

Miller Industries’ recent earnings call painted a picture of both challenges and resilience. The company faced significant hurdles in the second quarter of 2025, with a sharp decline in net sales and net income, largely due to lower consumer confidence and a drop in chassis volumes. Despite these setbacks, Miller Industries managed to improve its gross margin, reduce debt, and increase its cash balance. Positive developments in military contracts and RFQ activity offer a glimmer of hope, though uncertainties remain due to the suspension of earnings guidance and ongoing CARB regulation issues. Overall, the earnings call presented a balanced view of the company’s current state.

Miller Industries Reports Q2 2025 Financial Results

Miller Industries, Inc., a leading manufacturer of towing and recovery equipment, has reported its financial results for the second quarter of 2025, highlighting significant challenges and strategic adjustments. The company experienced a notable decline in net sales, dropping by 42.4% to $214 million compared to the same period last year, primarily due to a decrease in product shipments, particularly chassis. Despite the sales drop, the gross profit margin improved to 16.2%, attributed to a shift in sales mix towards higher-margin products.