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Miller Industries, Inc. (MLR)
:MLR
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Miller Industries
(NYSE:MLR)
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Rating:64Neutral
Price Target:
$40.00
▲(3.71% Upside)
Miller Industries' overall stock score reflects a mixed financial performance with stable profit margins but declining revenue and cash flow challenges. The technical outlook is neutral to bearish, while the valuation remains attractive. The earnings call highlighted significant challenges but also strategic initiatives to improve future performance. The recent acquisition is a positive development, potentially enhancing growth prospects.
Positive Factors
Debt Reduction
Significant debt reduction enhances financial flexibility and reduces interest expenses, supporting long-term financial health.
European Expansion
The acquisition of Omars expands Miller Industries' market presence in Europe, potentially increasing revenue and manufacturing capabilities.
Strong Cash Position
A strong cash position provides Miller Industries with the liquidity needed to invest in growth opportunities and manage economic uncertainties.
Negative Factors
Revenue Decline
A significant decline in revenue indicates challenges in sales and market demand, potentially impacting long-term growth and profitability.
Cash Flow Challenges
Cash flow challenges may limit Miller Industries' ability to fund operations and strategic initiatives, affecting future growth prospects.
Macroeconomic Uncertainty
Macroeconomic uncertainty can lead to reduced consumer spending and delayed purchases, affecting sales and revenue stability.
Miller Industries (MLR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$434.74M
Dividend Yield2.1%
Average Volume (3M)83.69K
Price to Earnings (P/E)14.6
Beta (1Y)1.11
Revenue Growth-36.91%
EPS Growth-56.72%
CountryUS
Employees1,690
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.27
Shares Outstanding11,431,416
10 Day Avg. Volume81,850
30 Day Avg. Volume83,687
Financial Highlights & Ratios
PEG Ratio1.34
Price to Book (P/B)1.87
Price to Sales (P/S)0.60
P/FCF Ratio493.00
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue0.57
Enterprise Value/Gross Profit3.74
Enterprise Value/Ebitda8.75
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.54
Revenue Forecast (FY)$783.65M
Miller Industries Business Overview & Revenue Model
Company DescriptionMiller Industries, Inc. (MLR) is a leading manufacturer of towing and recovery equipment, specializing in the production of heavy-duty tow trucks, trailers, and related accessories. The company operates primarily in the automotive sector, serving a diverse clientele that includes tow operators, fleet services, and emergency response organizations. With a commitment to innovation and quality, Miller Industries offers a wide range of products designed to meet the demands of the towing and recovery industry.
How the Company Makes MoneyMiller Industries generates revenue through the sale of its towing and recovery equipment, which includes a variety of heavy-duty and light-duty tow trucks, as well as parts and accessories. The company also earns income from aftermarket services, providing maintenance and repair support for its products. Key revenue streams include direct sales to customers, distribution partnerships with suppliers, and international sales. Additionally, Miller Industries benefits from strategic relationships with industry associations and local governments, enhancing its market presence and driving sales growth.
Miller Industries Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Neutral
While the company has taken proactive steps to manage inventory, reduce debt, and maintain a strong cash position, significant challenges remain with a notable decline in revenue and net income, coupled with macroeconomic uncertainty and workforce reductions. The outlook for military vehicle demand provides a positive future opportunity, but current performance reflects substantial difficulties.Q3-2025 Updates
Positive Updates
Gross Profit Margin Improvement
Gross profit for Q3 2025 was $25.3 million or 14.2% of net sales, an increase from 13.4% in the prior year period, due to a favorable product mix.
Significant Debt Reduction
Reduced debt by $10 million during Q3 2025, with an additional $10 million paid down post-quarter, bringing the debt balance to $35 million.
Strong Cash Position
Cash balance increased by $6.6 million sequentially, reaching $38.4 million at the end of Q3 2025.
Proactive Inventory Management
Strategic pre-purchase of materials to mitigate tariffs and reduction of field inventory, preparing for a more normalized inventory level by 2026.
Positive Military Market Outlook
Increased RFQ activity for military vehicles with expectations of production in 2027, offering potential future revenue growth.
Consistent Shareholder Returns
Paid dividends for 59 consecutive quarters and repurchased $1.2 million in stock, totaling $3.5 million returned to shareholders in Q3 2025.
Negative Updates
Significant Revenue Decline
Net sales for Q3 2025 were $178.7 million, representing a 43.1% year-over-year decrease due to a drop in chassis shipments.
Decrease in Net Income
Net income for Q3 2025 was $3.1 million or $0.27 per diluted share, down from $15.4 million or $1.33 per diluted share in the prior year period.
Headcount Reduction
Reduced headcount by approximately 150 positions across U.S. manufacturing facilities as part of cost reduction measures.
Macroeconomic Uncertainty
Continued macroeconomic uncertainty leading to delayed purchases in the retail channel and elevated field inventory.
Onetime Retirement Program Costs
SG&A expenses included a $900,000 one-time cost for retirement packages, with a total program cost of $2.7 million.
Company Guidance
During the Miller Industries Third Quarter 2025 Results Conference Call, the company provided guidance that emphasized a strategic focus on cost management and inventory control amid challenging market conditions. The company reported net sales of $178.7 million, reflecting a significant 43.1% year-over-year decrease primarily due to a decline in chassis shipments. Despite this, the gross profit margin improved to 14.2% from 13.4% the previous year, driven by a favorable product mix. SG&A expenses were reported at $21.2 million, marking an 11.9% share of net sales, with efforts to cut costs partially offset by a $900,000 retirement-related onetime expense. Interest expense significantly dropped by 63% to $93,000 due to reduced debt levels. The company closed the quarter with a cash balance of $38.4 million and reduced its debt to $35 million after a $10 million paydown. Inventory increased to $180.7 million, mainly from pre-purchasing materials to mitigate tariff effects, while accounts payable decreased to $82.2 million. Looking ahead, Miller Industries reaffirmed its 2025 revenue guidance of $750 million to $800 million and expressed confidence in its position for 2026, underpinned by improving inventory dynamics and growing demand for its military vehicles.Miller Industries Financial Statement Overview
Summary
Miller Industries shows a mixed financial performance. While the company maintains stable profit margins and a strong balance sheet with low leverage, challenges are evident with declining revenue and cash flow issues. The focus should be on reversing revenue decline and improving cash flow.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.65
Positive
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.72
Positive
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.58
Neutral
| 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
Negative
38.57
Price Trends
38.79
Negative
39.77
Negative
41.51
Negative
Market Momentum
-0.02
Negative
48.72
Neutral
46.80
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 38.57 is above the 20-day moving average (MA) of 37.99, below the 50-day MA of 38.79, and below the 200-day MA of 41.51, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 46.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLR.
Miller Industries Risk Analysis
Miller Industries disclosed 21 risk factors in its most recent earnings report. Miller Industries reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Miller Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $765.65M | 18.95 | 15.29% | 3.49% | 9.99% | -23.93% | |
65 Neutral | $855.11M | 12.65 | 10.49% | 3.19% | 23.96% | 11.01% | |
64 Neutral | $778.65M | 19.90 | 6.01% | ― | -6.02% | 42.35% | |
64 Neutral | $434.74M | 14.64 | 7.39% | 2.10% | -36.91% | -56.72% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $600.01M | 19.13 | ― | ― | -0.53% | ― | |
45 Neutral | $167.54M | -5.14 | -12.26% | ― | -4.91% | -331.53% |
* Consumer Cyclical Sector Average
MLR
Miller Industries
38.08
-27.70
-42.11%
AXL
American Axle
6.70
0.92
15.92%
PLOW
Douglas Dynamics
33.81
10.85
47.26%
SMP
Standard Motor Products
38.92
9.30
31.40%
SRI
Stoneridge
5.93
0.24
4.22%
CPS
Cooper-Standard Holdings
34.76
21.44
160.96%
Miller Industries Corporate Events
M&A TransactionsBusiness Operations and Strategy
Miller Industries Acquires Italian Manufacturer Omars
Positive
Dec 2, 2025
On December 2, 2025, Miller Industries, through its subsidiary Luna Acquisition Corp., acquired Omars – S.p.A, an Italian towing and recovery equipment manufacturer, for approximately €17.5 million. This acquisition enhances Miller Industries’ European footprint and is expected to improve manufacturing flexibility and market share, with Omars’ annual revenue of $27 million anticipated to be accretive in the first year.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.