MillerKnoll, Inc. (MLKN) stock analysis

P/E below its 5-year median

MillerKnoll's P/E of 15.5 is below its own 5-year median of 27.3.

P/E below the industry

MillerKnoll's P/E of 15.5 is below the Consumer discretionary median of 19.6.

EV/EBITDA below its 5-year median

MillerKnoll's EV/EBITDA of 7.6 is below its 5-year median of 9.9.

P/B below the industry

MillerKnoll's price-to-book of 1.11 is below the Consumer discretionary median of 1.22.

Trading below fair value

The share price of $21.84 is below our fair value estimate of $28.31.

Margin of safety over 20%

The price is 22.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -2.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 33.9% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 1.2% over the last twelve months; the Consumer discretionary median is 0.2%.

Guidance lowered

MillerKnoll lowered its Full Year FY2027 Net sales outlook on Sep 22, 2026.

Gross margin improving

Gross margin was 39.5% over the last twelve months, against 38.6% a year earlier.

Return on equity under 15%

Return on equity was 7.4% over the last twelve months and averaged 2.1% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.0%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

MillerKnoll's return on equity of 7.4% is above the Consumer discretionary median of -2.2%.

Earnings shrank over 5 years

Net income shrank 12.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 2.6% over the last twelve months, against a 5-year average of 0.8%.

Net margin above the industry

MillerKnoll's net margin of 2.6% is above the Consumer discretionary median of -1.1%.

High debt

Debt is 95.8% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 32.2% five years ago to 95.8%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 18.4% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.9 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.65 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 1.85; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

MillerKnoll paid dividends worth 3.4% of the share price over the last twelve months.

Yield below Treasuries

The 3.4% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; MillerKnoll yields 3.4%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 52.3% of net income.

Covered by free cash flow

Dividends take 44.3% of free cash flow.