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Miller Industries (MLR)
NYSE:MLR
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Miller Industries
(NYSE:MLR)
Rating:74Outperform
Price Target:
$51.00
▲(10.99%Upside)
Positive Factors
Demand Trends
Underlying demand trends remain strong for the tow truck market, and earnings power is expected to move higher as near-term headwinds are overcome.
Financial Management
MLR has a fantastic capital-allocation track record, avoiding heavy debt, growing dividends, and having a share repurchase program with targeted additional capacity.
Market Leadership
MLR is the category leader in tow trucks and related equipment, which is an essential, less-cyclical part of the Machinery & Truck Equipment landscape.
Negative Factors
Earnings Miss
The stock declined ~15% after the significant earnings miss out of left field, as well as challenging 2025 guidance.
Inventory Challenges
Challenging 2025 guidance was the result of mix headwinds – their dealers had excessive chassis inventory, resulting in an overhang that needs to be worked down.
Investor Attention
A lack of buy-side and sell-side attention has weighed on the stock for quite some time, despite being a less-cyclical company with a 14% revenue CAGR since 1991.
Miller Industries (MLR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$528.27M
Dividend Yield1.74%
Average Volume (3M)57.57K
Price to Earnings (P/E)9.8
Beta (1Y)1.07
Revenue Growth-7.18%
EPS Growth-17.48%
CountryUS
Employees1,690
SectorConsumer Cyclical
Sector Strength59
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.69
Shares Outstanding11,459,278
10 Day Avg. Volume55,041
30 Day Avg. Volume57,572
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)1.04
Price to Sales (P/S)0.00
P/FCF Ratio-6.33
Enterprise Value/Market Cap0.59
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit1.93
Enterprise Value/Ebitda0.77
Forecast
1Y Price Target
$66.00Price Target Upside43.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Miller Industries Business Overview & Revenue Model
Company DescriptionMiller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flatbed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other related applications. The company markets its products under the Century, Challenger, Holmes, Champion, Eagle, Titan, Jige, Boniface, Vulcan, and Chevron brands. Miller Industries, Inc. sells its products through independent distributors in the United States, Canada, Mexico, Europe, the Pacific Rim, the Middle East, South America, and Africa; and through prime contractors to governmental entities. The company was incorporated in 1990 and is based in Ooltewah, Tennessee.
How the Company Makes MoneyMiller Industries generates revenue primarily through the manufacturing and sale of towing and recovery equipment. The company sells its products to towing services, government entities, commercial fleet operators, and equipment distributors. Revenue streams include sales of new towing and recovery equipment, parts, and accessories. The company also benefits from significant partnerships and distribution agreements, which expand its market reach and customer base. Additionally, Miller Industries may engage in service and maintenance contracts, providing ongoing support to its clients, further contributing to its earnings.
Miller Industries Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 9.27%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant challenges such as a notable decline in sales and net income and regulatory and tariff uncertainties. However, these were balanced by positive aspects like improved margins, strong military demand, robust shareholder returns, and reaffirmed yearly guidance, pointing to potential future growth.Q1-2025 Updates
Positive Updates
Margin Improvement
Gross profit for the first quarter was $33.9 million or 15% of net sales compared to $44.2 million or 12.6% of net sales in the same period in 2024, showing a margin improvement due to a favorable product mix.
Strong Capital Return to Shareholders
The company returned $4.4 million to shareholders, including $2.1 million in share repurchases and dividends, marking the 58th consecutive quarter of dividend payments.
Robust Military Demand
Continued strong demand for military vehicles both domestically and internationally, with ongoing RFQ activity signaling positive future opportunities.
Improved Cash Balance
Cash balance increased to $27.4 million as of March 31, 2025, up from $24.3 million as of December 31, 2024, alongside significant improvements in accounts payable and receivable.
Strong Full-Year Guidance
The company reaffirmed its full-year revenue guidance of $950 million to $1 billion, expecting significant growth potential in 2026 and beyond.
Negative Updates
Sales Decline
Net sales for the first quarter of 2025 were $225.7 million compared to $349.9 million in the same quarter last year, representing a significant decline of 35.5%.
Net Income Decrease
Net income for the first quarter of 2025 was $8.1 million or $0.69 per diluted share compared to $17 million or $1.47 per diluted share in the prior year period, indicating a substantial decrease.
Uncertain Regulatory Environment
Ongoing challenges due to the Advanced Clean Truck regulation affecting supply in six large states, creating uncertainty in meeting customer needs.
Tariff Concerns
Tariff surcharges were implemented on new orders due to ongoing tariff uncertainties, and potential impacts on costs remain unclear.
Company Guidance
During the Miller Industries First Quarter 2025 Results Conference Call, management provided guidance and insights into the company's financial performance and strategic moves. The company reported a 35.5% decline in net sales to $225.7 million compared to the previous year, primarily due to normalized chassis shipment patterns following supply chain disruptions. Gross profit was $33.9 million or 15% of net sales, showing an improvement in margins due to a favorable product mix. The company returned $4.4 million to shareholders and maintained a strong balance sheet with a cash balance of $27.4 million and a debt balance of $75 million. Inventory levels were gradually reduced, and the company projected full-year revenue guidance between $950 million and $1 billion with an expected EPS range of $2.90 to $3.20 per diluted share. The management emphasized their strategy of reducing debt, improving free cash flow, and returning capital to shareholders while navigating uncertainties such as tariffs and regulatory developments.Miller Industries Financial Statement Overview
Summary
Miller Industries exhibits strong profitability and a robust balance sheet with low financial leverage. However, revenue contraction and negative free cash flow present challenges. The company's financial stability is supported by effective use of shareholder funds and stable operational efficiency.Income Statement
Miller Industries demonstrates strong profitability with a healthy gross profit margin of 14.2% and a net profit margin of 4.8% in TTM (Trailing-Twelve-Months). However, there is a revenue contraction of 9.9% from the previous year, signaling potential challenges in revenue growth. The EBIT margin stands at 6.4%, reflecting stable operational efficiency.78
Positive
Balance Sheet
The company's balance sheet is robust, with a debt-to-equity ratio of 0.19, indicating low financial leverage. The equity ratio is strong at 63.5%, showcasing the company's financial stability. Return on equity (ROE) is healthy at 13.4%, pointing to effective use of shareholder funds.82
Very Positive
Cash Flow
The cash flow situation reveals some concerns, as free cash flow is negative in the TTM (Trailing-Twelve-Months) with a free cash flow to net income ratio of -0.1. However, the operating cash flow to net income ratio is 0.19, indicating some level of operational cash generation despite challenges.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.13B | 1.26B | 1.15B | 848.46M | 717.48M | 651.29M | Gross Profit |
| 160.51M | 170.81M | 151.85M | 82.42M | 69.85M | 78.36M | EBIT |
| 72.47M | 84.48M | 78.77M | 17.35M | 12.09M | 29.71M | EBITDA |
| 86.44M | 84.48M | 93.00M | 41.35M | 34.66M | 48.24M | Net Income Common Stockholders |
| 54.54M | 63.49M | 58.29M | 20.35M | 16.25M | 29.83M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 27.36M | 24.34M | 29.91M | 40.15M | 54.33M | 57.52M | Total Assets |
| 639.71M | 667.01M | 647.21M | 501.43M | 438.85M | 398.41M | Total Debt |
| 75.50M | 65.55M | 60.83M | 45.91M | 1.25M | 1.51M | Net Debt |
| 48.14M | 41.21M | 30.92M | 5.75M | -53.09M | -56.02M | Total Liabilities |
| 233.20M | 265.99M | 299.29M | 207.97M | 150.31M | 115.96M | Stockholders Equity |
| 406.51M | 401.03M | 347.92M | 293.46M | 288.54M | 282.45M |
| Cash Flow | Free Cash Flow | ||||
| -5.20M | 1.52M | -1.13M | -48.09M | 6.12M | 43.21M | Operating Cash Flow |
| 10.61M | 16.87M | 10.96M | -19.16M | 15.27M | 60.71M | Investing Cash Flow |
| -15.73M | -15.27M | -29.07M | -28.93M | -9.06M | -17.22M | Financing Cash Flow |
| 6.17M | -6.62M | 6.75M | 36.77M | -8.24M | -13.63M |
Miller Industries Technical Analysis
Positive
45.95
Price Trends
43.12
Positive
49.63
Negative
57.30
Negative
Market Momentum
0.51
Negative
57.56
Neutral
76.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLR, the sentiment is Positive. The current price of 45.95 is above the 20-day moving average (MA) of 45.42, above the 50-day MA of 43.12, and below the 200-day MA of 57.30, indicating a neutral trend. The MACD of 0.51 indicates Negative momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 76.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MLR.
Miller Industries Risk Analysis
Miller Industries disclosed 21 risk factors in its most recent earnings report. Miller Industries reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Miller Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $528.27M | 9.79 | 14.19% | 1.74% | -7.18% | -17.48% | |
71 Outperform | $541.99M | 10.30 | 5.91% | ― | -0.24% | -10.33% | |
68 Neutral | $538.30M | 51.45 | 3.69% | 3.75% | 3.92% | -73.64% | |
66 Neutral | $523.30M | 25.80 | 3.40% | ― | -4.25% | ― | |
63 Neutral | $498.99M | 21.62 | -0.81% | 6.73% | -6.38% | -118.57% | |
63 Neutral | $6.98B | 11.41 | 2.80% | 4.24% | 2.68% | -24.94% | |
60 Neutral | $668.50M | 55.88 | 7.04% | ― | 15.24% | -54.31% |
* Consumer Cyclical Sector Average
Performance Comparison
MLR
Miller Industries
45.95
-10.38
-18.43%
AXL
American Axle
4.53
-2.65
-36.91%
LINC
Lincoln Edu
21.63
10.75
98.81%
HZO
Marinemax
25.28
-7.44
-22.74%
MNRO
Monro Muffler
15.62
-7.63
-32.82%
MYE
Myers Industries
14.71
0.15
1.03%
Miller Industries Corporate Events
Executive/Board ChangesShareholder Meetings
Miller Industries Holds Annual Shareholder Meeting
Neutral
May 28, 2025
On May 23, 2025, Miller Industries, Inc. held its Annual Meeting of Shareholders in Dalton, Georgia, with 90.18% of the company’s common stock represented. During the meeting, shareholders elected seven directors to serve until the next annual meeting in 2026 and approved the 2025 Stock Incentive Plan.
The most recent analyst rating on (MLR) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on Miller Industries stock, see the MLR Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.