NasdaqGS:MLHR

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.

Rewards

Trading at 46.7% below its fair value

Earnings are forecast to grow 7% per year

Earnings grew by 32.2% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Outstanding track record with flawless balance sheet 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: MLHR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

MLHR

0.2%

US Commercial Services

0.7%

US Market


1 Year Return

48.1%

MLHR

23.3%

US Commercial Services

18.2%

US Market

Return vs Industry: MLHR exceeded the US Commercial Services industry which returned 23.3% over the past year.

Return vs Market: MLHR exceeded the US Market which returned 18.2% over the past year.


Shareholder returns

MLHRIndustryMarket
7 Day-0.9%0.2%0.7%
30 Day-1.2%0.9%1.5%
90 Day7.7%3.6%5.0%
1 Year51.1%48.1%27.6%23.3%20.8%18.2%
3 Year46.0%37.0%55.6%46.1%45.2%35.8%
5 Year76.0%58.7%105.7%84.6%71.6%52.7%

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

Valuation

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

46.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MLHR ($47.21) is trading below our estimate of fair value ($88.55)

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


Price To Earnings Ratio

PE vs Industry: MLHR is good value based on its PE Ratio (16.1x) compared to the Commercial Services industry average (26.4x).

PE vs Market: MLHR is good value based on its PE Ratio (16.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: MLHR is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: MLHR is overvalued based on its PB Ratio (3.7x) compared to the US Commercial Services industry average (2x).


Next Steps

Future Growth

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

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MLHR's forecast earnings growth (7% per year) is above the savings rate (1.7%).

Earnings vs Market: MLHR's earnings (7% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: MLHR's earnings are forecast to grow, but not significantly.

Revenue vs Market: MLHR's revenue (2.5% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: MLHR's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MLHR's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has Herman Miller performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLHR has high quality earnings.

Growing Profit Margin: MLHR's current net profit margins (6.6%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: MLHR has become profitable over the past 5 years, growing earnings by 14.8% per year.

Accelerating Growth: MLHR's earnings growth over the past year (32.2%) exceeds its 5-year average (14.8% per year).

Earnings vs Industry: MLHR earnings growth over the past year (32.2%) exceeded the Commercial Services industry -3.1%.


Return on Equity

High ROE: MLHR's Return on Equity (23.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Herman Miller's financial position?


Financial Position Analysis

Short Term Liabilities: MLHR's short term assets ($653.6M) exceed its short term liabilities ($484.9M).

Long Term Liabilities: MLHR's short term assets ($653.6M) exceed its long term liabilities ($554.7M).


Debt to Equity History and Analysis

Debt Level: MLHR's debt to equity ratio (39%) is considered satisfactory.

Reducing Debt: MLHR's debt to equity ratio has reduced from 83.6% to 39% over the past 5 years.

Debt Coverage: MLHR's debt is well covered by operating cash flow (81.9%).

Interest Coverage: MLHR's interest payments on its debt are well covered by EBIT (22.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: MLHR's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

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

1.78%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: MLHR's dividend (1.78%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MLHR's dividend (1.78%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: MLHR's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.3%), MLHR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MLHR's dividends in 3 years are forecast to be well covered by earnings (23.3% payout ratio).


Next Steps

Management

What is the CEO of Herman Miller's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Andi Owen (54yo)

1.3yrs

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 ($USD4.42M) is about average for companies of similar size in the US market ($USD5.09M).

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


Management Age and Tenure

2.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: MLHR's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

11.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MLHR's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$613,50725 Sep 19
Gregory Bylsma
EntityIndividual
Role
Senior Key Executive
President of North America Contract
Shares13,288
Max PriceUS$46.17
SellUS$156,66330 Jul 19
Jeffrey Kurburski
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares3,442
Max PriceUS$45.52
SellUS$473,61103 Jul 19
Gregory Bylsma
EntityIndividual
Role
Senior Key Executive
President of North America Contract
Shares10,717
Max PriceUS$44.19
SellUS$204,14301 May 19
Gregory Bylsma
EntityIndividual
Role
Senior Key Executive
President of North America Contract
Shares5,236
Max PriceUS$38.99
SellUS$316,51901 Apr 19
Gregory Bylsma
EntityIndividual
Role
Senior Key Executive
President of North America Contract
Shares9,048
Max PriceUS$34.98

Ownership Breakdown

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


Management Team

  • Don Goeman (62yo)

    Executive Vice President of Research

    • Tenure: 14.9yrs
    • Compensation: US$929.04k
  • Greg Bylsma (54yo)

    President of North America Contract

    • Tenure: 0yrs
    • Compensation: US$1.64m
  • Jeff Stutz (48yo)

    Chief Financial Officer

    • Tenure: 4.8yrs
    • Compensation: US$1.60m
  • B. Watson (54yo)

    Chief Creative Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.47m
  • Jeff Kurburski (53yo)

    Chief Technology Officer

    • Tenure: 0yrs
  • Andi Owen (54yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$4.42m
  • Jackie Rice (47yo)

    General Counsel

    • Tenure: 0.8yrs
  • Kevin Veltman (44yo)

    VP of Investor Relations & Treasurer

    • Tenure: 0yrs
  • Leander LeSure (53yo)

    Chief Human Resources Officer

    • Tenure: 0.8yrs
  • Jeremy Hocking (58yo)

    President of International Contract

    • Tenure: 2.8yrs
    • Compensation: US$1.22m

Board Members

  • Doug French (65yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$192.93k
  • Dave Brandon (67yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$205.34k
  • Michael Volkema (63yo)

    Non-Executive Chairman

    • Tenure: 19.9yrs
    • Compensation: US$345.85k
  • Mary Andringa (69yo)

    Independent Director

    • Tenure: 20.9yrs
    • Compensation: US$185.00k
  • John Griswell (70yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: US$183.00k
  • John Hoke (54yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$179.00k
  • Lisa Kro (54yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$195.00k
  • Heidi Manheimer (56yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$181.00k
  • Andi Owen (54yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$4.42m
  • Mike Smith (49yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$183.00k

Company Information

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


Key Information

  • Name: Herman Miller, Inc.
  • Ticker: MLHR
  • Exchange: NasdaqGS
  • Founded: 1905
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Market Cap: US$2.788b
  • 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 rela ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:38
End of Day Share Price2019/12/09 00:00
Earnings2019/08/31
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.