DB:MHR

Stock Analysis Report

Executive Summary

Herman Miller, Inc. engages in the research, design, manufacture, and distribution of office furniture systems, seating products, other freestanding furniture elements, textiles, home furnishings, and related services worldwide.


Snowflake Analysis

Flawless balance sheet with outstanding track record and pays a dividend.


Similar Companies

Share Price & News

How has Herman Miller's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MHR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

32.5%

MHR

1.0%

DE Commercial Services

7.2%

DE Market


1 Year Return

-31.0%

MHR

-32.2%

DE Commercial Services

-17.5%

DE Market

Return vs Industry: MHR underperformed the German Commercial Services industry which returned -28.9% over the past year.

Return vs Market: MHR underperformed the German Market which returned -14.1% over the past year.


Shareholder returns

MHRIndustryMarket
7 Day32.5%1.0%7.2%
30 Day-37.6%-25.8%-22.3%
90 Day-43.0%-34.2%-26.1%
1 Year-29.5%-31.0%-29.7%-32.2%-14.9%-17.5%
3 Year-21.5%-26.4%-27.9%-34.2%-18.7%-25.7%
5 Year-7.5%-16.8%-35.8%-44.8%-17.8%-29.1%

Price Volatility Vs. Market

How volatile is Herman Miller's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Herman Miller undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MHR (€21.2) is trading below our estimate of fair value (€107.23)

Significantly Below Fair Value: MHR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MHR is good value based on its PE Ratio (6.8x) compared to the Commercial Services industry average (91.6x).

PE vs Market: MHR is good value based on its PE Ratio (6.8x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: MHR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MHR is good value based on its PB Ratio (1.7x) compared to the DE Commercial Services industry average (2.8x).


Next Steps

Future Growth

How is Herman Miller forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-50.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MHR's earnings are forecast to decline over the next 3 years (-50.4% per year).

Earnings vs Market: MHR's earnings are forecast to decline over the next 3 years (-50.4% per year).

High Growth Earnings: MHR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MHR's revenue is expected to decline over the next 3 years (-10.2% per year).

High Growth Revenue: MHR's revenue is forecast to decline over the next 3 years (-10.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MHR's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

How has Herman Miller performed over the past 5 years?

12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MHR has high quality earnings.

Growing Profit Margin: MHR's current net profit margins (7.8%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: MHR's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: MHR's earnings growth over the past year (44.2%) exceeds its 5-year average (12.2% per year).

Earnings vs Industry: MHR earnings growth over the past year (44.2%) exceeded the Commercial Services industry 10.9%.


Return on Equity

High ROE: MHR's Return on Equity (23.1%) is considered high.


Next Steps

Financial Health

How is Herman Miller's financial position?


Financial Position Analysis

Short Term Liabilities: MHR's short term assets ($636.3M) exceed its short term liabilities ($506.1M).

Long Term Liabilities: MHR's short term assets ($636.3M) exceed its long term liabilities ($571.2M).


Debt to Equity History and Analysis

Debt Level: MHR's debt to equity ratio (23.2%) is considered satisfactory.

Reducing Debt: MHR's debt to equity ratio has reduced from 72% to 23.2% over the past 5 years.

Debt Coverage: MHR's debt is well covered by operating cash flow (131.4%).

Interest Coverage: MHR's interest payments on its debt are well covered by EBIT (24.4x coverage).


Balance Sheet

Inventory Level: MHR has a high level of physical assets or inventory.

Debt Coverage by Assets: MHR's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

What is Herman Miller's current dividend yield, its reliability and sustainability?

3.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MHR's dividend (3.45%) is higher than the bottom 25% of dividend payers in the German market (1.66%).

High Dividend: MHR's dividend (3.45%) is low compared to the top 25% of dividend payers in the German market (4.86%).


Stability and Growth of Payments

Stable Dividend: MHR's dividends per share have been stable in the past 10 years.

Growing Dividend: MHR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.5%), MHR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MHR's dividends in 3 years are forecast to be covered by earnings (61.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Andi Owen (54yo)

1.58s

Tenure

US$4,421,162

Compensation

Ms. Andrea R. Owen has been Chief Executive Officer, President and Director of Herman Miller, Inc. since August 22, 2018. Ms. Owen serves as a Director of Taylor Morrison Home Corporation. She served as an ...


CEO Compensation Analysis

Compensation vs Market: Andi's total compensation ($USD4.42M) is above average for companies of similar size in the German market ($USD1.85M).

Compensation vs Earnings: Insufficient data to compare Andi's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Andrea Owen
President1.58yrsUS$4.42mno data
Jeffrey Stutz
Chief Financial Officer5.08yrsUS$1.60m0.046% $576.4k
Gregory Bylsma
President of North America Contractno dataUS$1.64m0.045% $565.3k
B. Watson
Chief Creative Officer3.08yrsUS$1.47m0.059% $742.2k
Jeremy Hocking
President of International Contract3.08yrsUS$1.22m0.016% $197.2k
Jeffrey Kurburski
Chief Technology Officerno datano data0.0093% $117.9k
Kevin Veltman
VP of Investor Relations & Treasurerno datano data0.0021% $26.2k
Jacqueline Rice
General Counsel1.08yrsno datano data
Donald Goeman
Executive Vice President of Research15.17yrsUS$929.04kno data
Leander LeSure
Chief Human Resources Officer1.08yrsno datano data

3.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: MHR's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrea Owen
President1.58yrsUS$4.42mno data
Douglas French
Independent Director18.17yrsUS$192.93k0.020% $253.8k
David Brandon
Independent Director9.08yrsUS$205.34k0.028% $360.1k
Michael Volkema
Non-Executive Chairman20.17yrsUS$345.85k0.13% $1.6m
Mary Andringa
Independent Director21.17yrsUS$185.00k0.071% $904.3k
John Griswell
Independent Director15.67yrsUS$183.00k0.036% $457.7k
John Hoke
Independent Director14.5yrsUS$179.00k0.052% $662.4k
Lisa Kro
Independent Director8.17yrsUS$195.00k0.037% $462.9k
Heidi Manheimer
Independent Director6.17yrsUS$181.00k0.032% $398.5k
Michael Smith
Independent Director1.17yrsUS$183.00k0.0097% $122.6k

11.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MHR's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MHR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Herman Miller, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Herman Miller, Inc.
  • Ticker: MHR
  • Exchange: DB
  • Founded: 1905
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$1.403b
  • Listing Market Cap: US$1.265b
  • Shares outstanding: 59.06m
  • Website: https://www.hermanmiller.com

Number of Employees


Location

  • Herman Miller, Inc.
  • 855 East Main Avenue
  • PO Box 302
  • Zeeland
  • Michigan
  • 49464
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MLHRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1971
MHRDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1971

Biography

Herman Miller, Inc. engages in the research, design, manufacture, and distribution of office furniture systems, seating products, other freestanding furniture elements, textiles, home furnishings, and related services worldwide. The company offers seating products under the Embody, Aeron, Mirra2, Setu, Sayl, Verus, Cosm, Lino, Verus, Celle, Equa, Taper, and Ergon names; and modular systems under the Canvas Office Landscape, Locale, Public Office Landscape, Layout Studio, Action Office, Ethospace, Arras, Prospect, Overlay, and Resolve names. It also provides storage products under the Meridian and Tu names; wood case goods under the Geiger name; freestanding furniture products under the Abak, Intent, Sense, and Envelop names; healthcare products under the Palisade, Compass, Nala, Ava, and Nemschoff names; Thrive portfolio of ergonomic solutions, ergonomic, and technology support products under the Colebrook Bosson Saunders name; and textiles under the Maharam name, as well as Live Platform system of cloud-connected furnishings, applications, and dashboards. In addition, the company offers products for residential settings under the Eames, HAY, Nelson, Bubble Lamps, Airia, Ardea, Bumper, Burdick Group, Everywhere, Claw, Caper, Distil, Envelope, Formwork, Full Round, H Frame, I Beam, Landmark, Logic Mini, Logic Power Access Solutions, Renew, Rolled Arm, Scissor, Sled, Soft Pad, Swoop, Tone, Twist, Ward Bennett, and Wireframe names. Its products are used in offices and related conference, lobby, and lounge areas; transportation terminals; hospitals, clinics, and other healthcare facilities; industrial and educational settings; and residential and other environments. The company markets its products through its sales staff, own dealer network, independent dealers and retailers, and independent contract office furniture dealers, as well as through e-commerce Website. Herman Miller, Inc. was founded in 1905 and is headquartered in Zeeland, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 21:40
End of Day Share Price2020/03/27 00:00
Earnings2020/02/29
Annual Earnings2019/06/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.