Latest news with #MillerIndustries
Yahoo
2 days ago
- Business
- Yahoo
Miller Industries, Inc. (MLR): A Bull Case Theory
We came across a bullish thesis on Miller Industries, Inc. (MLR) on Flyover Stocks' Substack. In this article, we will summarize the bulls' thesis on MLR. Miller Industries, Inc. (MLR)'s share was trading at $44.34 as of 23rd March. MLR's trailing P/E was 9.45 according to Yahoo Finance. nitinut380 / Miller Industries, headquartered in the small town of Ooltewah, Tennessee, is the world's largest manufacturer of towing and recovery equipment, serving a critical but often overlooked niche. Founded in 1990 by William Miller, the company aggressively consolidated the fragmented towing equipment market by acquiring major brands like Holmes, Century, and Vulcan International during a depressed market, streamlining operations and boosting efficiency. Since going public in 1994, Miller has grown steadily with revenue, EBITDA, and net income increasing at annual rates of 8.2%, 11.4%, and 13.3%, respectively. Despite low analyst coverage and operating in an unglamorous industry, the company maintains a clean balance sheet and has recently increased focus on returning value to shareholders through dividends and buybacks. Miller's specialized heavy-duty equipment is essential for roadside recovery, disaster response, and off-highway equipment transport, making it a key player in an essential infrastructure sector. Current challenges for Miller include navigating California's stringent Advanced Clean Technology (ACT) regulations, managing inventory cycles, and dealing with supply chain and tariff complexities. These regulatory and operational factors will influence near-term performance, but Miller's entrenched market leadership, ongoing consolidation strategy, and focus on shareholder returns position it well for sustainable growth. The company's niche expertise and steady expansion in a stable industry offer investors a classic 'Flyover Stock' profile: solid fundamentals, modest but consistent growth, and limited market hype, making Miller Industries a compelling candidate for those seeking long-term exposure to a resilient industrial equipment manufacturer with attractive valuation and clear growth prospects. Miller Industries, Inc. (MLR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held MLR at the end of the fourth quarter which was 15 in the previous quarter. While we acknowledge the risk and potential of MLR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MLR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Miller Industries, Inc. (MLR): A Bull Case Theory
We came across a bullish thesis on Miller Industries, Inc. (MLR) on Flyover Stocks' Substack. In this article, we will summarize the bulls' thesis on MLR. Miller Industries, Inc. (MLR)'s share was trading at $44.34 as of 23rd March. MLR's trailing P/E was 9.45 according to Yahoo Finance. nitinut380 / Miller Industries, headquartered in the small town of Ooltewah, Tennessee, is the world's largest manufacturer of towing and recovery equipment, serving a critical but often overlooked niche. Founded in 1990 by William Miller, the company aggressively consolidated the fragmented towing equipment market by acquiring major brands like Holmes, Century, and Vulcan International during a depressed market, streamlining operations and boosting efficiency. Since going public in 1994, Miller has grown steadily with revenue, EBITDA, and net income increasing at annual rates of 8.2%, 11.4%, and 13.3%, respectively. Despite low analyst coverage and operating in an unglamorous industry, the company maintains a clean balance sheet and has recently increased focus on returning value to shareholders through dividends and buybacks. Miller's specialized heavy-duty equipment is essential for roadside recovery, disaster response, and off-highway equipment transport, making it a key player in an essential infrastructure sector. Current challenges for Miller include navigating California's stringent Advanced Clean Technology (ACT) regulations, managing inventory cycles, and dealing with supply chain and tariff complexities. These regulatory and operational factors will influence near-term performance, but Miller's entrenched market leadership, ongoing consolidation strategy, and focus on shareholder returns position it well for sustainable growth. The company's niche expertise and steady expansion in a stable industry offer investors a classic 'Flyover Stock' profile: solid fundamentals, modest but consistent growth, and limited market hype, making Miller Industries a compelling candidate for those seeking long-term exposure to a resilient industrial equipment manufacturer with attractive valuation and clear growth prospects. Miller Industries, Inc. (MLR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held MLR at the end of the fourth quarter which was 15 in the previous quarter. While we acknowledge the risk and potential of MLR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MLR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
23-02-2025
- Business
- Yahoo
Miller Industries, Inc. (NYSE:MLR) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
It is hard to get excited after looking at Miller Industries' (NYSE:MLR) recent performance, when its stock has declined 18% over the past three months. However, stock prices are usually driven by a company's financial performance over the long term, which in this case looks quite promising. Specifically, we decided to study Miller Industries' ROE in this article. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Check out our latest analysis for Miller Industries The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Miller Industries is: 18% = US$70m ÷ US$395m (Based on the trailing twelve months to September 2024). The 'return' is the amount earned after tax over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.18 in profit. We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To start with, Miller Industries' ROE looks acceptable. Further, the company's ROE compares quite favorably to the industry average of 14%. This certainly adds some context to Miller Industries' decent 17% net income growth seen over the past five years. We then performed a comparison between Miller Industries' net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 15% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. Is MLR fairly valued? This infographic on the company's intrinsic value has everything you need to know. Miller Industries has a healthy combination of a moderate three-year median payout ratio of 30% (or a retention ratio of 70%) and a respectable amount of growth in earnings as we saw above, meaning that the company has been making efficient use of its profits. Moreover, Miller Industries is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 13% over the next three years. Overall, we are quite pleased with Miller Industries' performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
