Examining Herman Miller, Inc.’s (NASDAQ:MLHR) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess MLHR’s latest performance announced on 02 March 2019 and compare these figures to its longer term trend and industry movements.
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How MLHR fared against its long-term earnings performance and its industry
MLHR’s trailing twelve-month earnings (from 02 March 2019) of US$146m has jumped 13% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 24%, indicating the rate at which MLHR is growing has slowed down. To understand what’s happening, let’s look at what’s going on with margins and whether the rest of the industry is feeling the heat.
In terms of returns from investment, Herman Miller has fallen short of achieving a 20% return on equity (ROE), recording 20% instead. However, its return on assets (ROA) of 10% exceeds the US Commercial Services industry of 6.4%, indicating Herman Miller has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Herman Miller’s debt level, has declined over the past 3 years from 24% to 17%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Herman Miller has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Herman Miller to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for MLHR’s future growth? Take a look at our free research report of analyst consensus for MLHR’s outlook.
- Financial Health: Are MLHR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 02 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.