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.

Snowflake

Fundamentals

Flawless balance sheet with solid 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


Market Performance


7 Day Return

1.6%

NasdaqGS:MLHR

-1.2%

US Commercial Services

1.2%

US Market


1 Year Return

19.3%

NasdaqGS:MLHR

3.4%

US Commercial Services

1.7%

US Market

MLHR outperformed the Commercial Services industry which returned 3.4% over the past year.

MLHR outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

MLHRIndustryMarket
7 Day1.6%-1.2%1.2%
30 Day5.0%0.7%4.9%
90 Day16.8%-0.4%3.7%
1 Year22.0%19.3%7.3%3.4%3.9%1.7%
3 Year36.0%27.6%65.3%54.1%47.2%37.7%
5 Year60.6%44.8%97.7%77.8%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Herman Miller's share price is below the future cash flow value, and at a moderate discount (> 20%).

Herman Miller's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Herman Miller is good value based on earnings compared to the US Commercial Services industry average.

Herman Miller is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Herman Miller is poor value based on expected growth next year.


Price Based on Value of Assets

Herman Miller is overvalued based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

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

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Herman Miller's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Herman Miller's earnings are expected to grow by 8% yearly, however this is not considered high growth (20% yearly).

Herman Miller's revenue growth is positive but not above the United States of America market average.

Herman Miller's earnings growth is positive but not above the United States of America market average.

Herman Miller's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Herman Miller is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Herman Miller performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Herman Miller's year on year earnings growth rate has been positive over the past 5 years.

Herman Miller's 1-year earnings growth exceeds its 5-year average (25.3% vs 19.5%)

Herman Miller's earnings growth has exceeded the US Commercial Services industry average in the past year (25.3% vs -2.4%).


Return on Equity

Herman Miller has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Herman Miller used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Herman Miller's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Herman Miller's financial position?


Financial Position Analysis

Herman Miller is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Herman Miller's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Herman Miller's level of debt (36.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (67.6% vs 36.9% today).

Debt is well covered by operating cash flow (79.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 21.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.4x debt.


Next Steps

Dividend

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

1.97%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Herman Miller's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Herman Miller's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Andi Owen (54yo)

1.1yrs

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

Andi's remuneration is about average for companies of similar size in United States of America.

Insufficient data for Andi to compare compensation growth.


Management Age and Tenure

2.6yrs

Average Tenure

53.5yo

Average Age

The tenure for the Herman Miller management team is about average.


Board Age and Tenure

11.3yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Herman Miller board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Herman Miller individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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


Management Team

  • Don Goeman (62yo)

    Executive Vice President of Research

    • Tenure: 14.7yrs
    • 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: 4.6yrs
    • Compensation: US$1.60m
  • B. Watson (54yo)

    Chief Creative Officer

    • Tenure: 2.6yrs
    • Compensation: US$1.47m
  • Jeff Kurburski (53yo)

    Chief Technology Officer

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

    President

    • Tenure: 1.1yrs
    • Compensation: US$4.42m
  • Jackie Rice (47yo)

    General Counsel

    • Tenure: 0.6yrs
  • Kevin Veltman (44yo)

    VP of Investor Relations & Treasurer

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

    Chief Human Resources Officer

    • Tenure: 0.6yrs
  • Jeremy Hocking (58yo)

    President of International Contract

    • Tenure: 2.6yrs
    • Compensation: US$1.22m

Board Members

  • Doug French (65yo)

    Director

    • Tenure: 17.7yrs
    • Compensation: US$192.93k
  • Dave Brandon (67yo)

    Director

    • Tenure: 8.6yrs
    • Compensation: US$205.34k
  • Michael Volkema (63yo)

    Non-Executive Chairman

    • Tenure: 19.7yrs
    • Compensation: US$345.85k
  • Mary Andringa (69yo)

    Director

    • Tenure: 20.7yrs
    • Compensation: US$185.00k
  • John Griswell (70yo)

    Director

    • Tenure: 15.2yrs
    • Compensation: US$183.00k
  • John Hoke (54yo)

    Director

    • Tenure: 14yrs
    • Compensation: US$179.00k
  • Lisa Kro (54yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: US$195.00k
  • Heidi Manheimer (56yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$181.00k
  • Andi Owen (54yo)

    President

    • Tenure: 1.1yrs
    • Compensation: US$4.42m
  • Mike Smith (49yo)

    Director

    • Tenure: 0.7yrs
    • 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$2.632b
  • Shares outstanding: 59.05m
  • 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 Analysis2019/09/15 23:39
End of Day Share Price2019/09/13 00:00
Earnings2019/06/01
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.