Miller Industries (MLR) AI Stock Analysis

• Market Cap: $479.06M
• Dividend Yield: 1.87%
• Average Volume (3M): 137.84K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.10
• Revenue Growth: -24.48%
• EPS Growth: -40.73%
• Country: US
• Employees: 1,690
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): 0.73
• Shares Outstanding: 11,458,123
• 10 Day Avg. Volume: 114,826
• 30 Day Avg. Volume: 137,845
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 3.75
• Enterprise Value/Ebitda: 7.70
• 1Y Price Target: $45.00
• Price Target Upside: 7.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $45.00 ▲(7.71% Upside)

Miller Industries faces significant challenges, particularly in revenue growth and cash flow generation, which are reflected in the financial performance and earnings call scores. While the company has a strong balance sheet and reasonable valuation, technical indicators suggest limited momentum. The overall sentiment leans towards caution due to market uncertainties and operational challenges.

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 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 strong profitability and a robust balance sheet with low leverage, but faces challenges in revenue growth and cash flow management. The income statement and balance sheet are strong, but negative free cash flow is a concern.

Income Statement

Miller Industries demonstrates strong profitability with a healthy gross profit margin of 14.2% and a net profit margin of 4.8% in TTM (Trailing-Twelve-Months). However, there is a revenue contraction of 9.9% from the previous year, signaling potential challenges in revenue growth. The EBIT margin stands at 6.4%, reflecting stable operational efficiency.

Balance Sheet

The company's balance sheet is robust, with a debt-to-equity ratio of 0.19, indicating low financial leverage. The equity ratio is strong at 63.5%, showcasing the company's financial stability. Return on equity (ROE) is healthy at 13.4%, pointing to effective use of shareholder funds.

Cash Flow

The cash flow situation reveals some concerns, as free cash flow is negative in the TTM (Trailing-Twelve-Months) with a free cash flow to net income ratio of -0.1. However, the operating cash flow to net income ratio is 0.19, indicating some level of operational cash generation despite challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	975.86M	1.26B	1.15B	848.46M	717.48M	651.29M
Gross Profit	144.01M	170.81M	151.85M	82.42M	69.85M	78.36M
EBITDA	70.06M	84.48M	93.00M	41.35M	34.66M	48.24M
Net Income	42.48M	63.49M	58.29M	20.35M	16.25M	29.83M
Balance Sheet
Total Assets	622.93M	667.01M	647.21M	501.43M	438.85M	398.41M
Cash, Cash Equivalents and Short-Term Investments	31.82M	24.34M	29.91M	40.15M	54.33M	57.52M
Total Debt	55.45M	65.55M	60.83M	45.91M	1.25M	1.51M
Total Liabilities	204.34M	265.99M	299.29M	207.97M	150.31M	115.96M
Stockholders Equity	418.59M	401.03M	347.92M	293.46M	288.54M	282.45M
Cash Flow
Free Cash Flow	34.17M	1.52M	-1.13M	-48.09M	6.12M	43.21M
Operating Cash Flow	48.53M	16.87M	10.96M	-19.16M	15.27M	60.71M
Investing Cash Flow	-14.38M	-15.27M	-29.07M	-28.93M	-9.06M	-17.22M
Financing Cash Flow	-27.38M	-6.62M	6.75M	36.77M	-8.24M	-13.63M

Miller Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.78
• 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 41.78 is below the 20-day moving average (MA) of 42.51, below the 50-day MA of 43.11, and below the 200-day MA of 51.73, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 15.54 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	81 Outperform	$772.10M	12.13	25.41%	3.53%	1.47%	131.61%
SMP	80 Outperform	$879.51M	13.56	9.90%	3.05%	17.98%	9.41%
CPS	64 Neutral	$688.58M	24.17	112.26%	―	-2.70%	―
MLR	63 Neutral	$479.06M	11.42	10.64%	1.87%	-24.48%	-40.73%
Sector *	61 Neutral	$17.97B	12.87	-5.30%	2.97%	1.26%	-14.45%
AXL	61 Neutral	$709.61M	17.29	6.38%	―	-6.73%	4900.00%
SRI	55 Neutral	$233.57M	―	-11.20%	―	-6.99%	-1688.02%

Miller Industries Corporate Events

Miller Industries Holds Annual Shareholder Meeting

On May 23, 2025, Miller Industries, Inc. held its Annual Meeting of Shareholders in Dalton, Georgia, with 90.18% of the company’s common stock represented. During the meeting, shareholders elected seven directors to serve until the next annual meeting in 2026 and approved the 2025 Stock Incentive Plan.