DA Davidson's analyst, Michael Shlisky, has revised the price target for Miller Industries (MLR, Financial), reducing it to $64 from the previous $66, while maintaining a Buy rating on the stock. The adjustment follows discussions with the company's management, which left a largely positive impression despite some concerns over tariff issues. Shlisky highlighted potential near-term benefits from upcoming tax and regulatory changes, suggesting that these could prove advantageous for Miller Industries. Additionally, military sector opportunities remain strong, offering further growth prospects for the company.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Miller Industries Inc (MLR, Financial) is $68.00 with a high estimate of $70.00 and a low estimate of $66.00. The average target implies an upside of 55.54% from the current price of $43.72. More detailed estimate data can be found on the Miller Industries Inc (MLR) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Miller Industries Inc's (MLR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Miller Industries Inc (MLR, Financial) in one year is $42.42, suggesting a downside of 2.97% from the current price of $43.72. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Miller Industries Inc (MLR) Summary page.
MLR Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Miller Industries Inc (MLR, Financial) reported a gross profit margin improvement to 15% from 12.6% in the previous year, attributed to a favorable product mix.
- The company returned $4.4 million to shareholders through share repurchases and dividends, highlighting its commitment to shareholder value.
- Miller Industries Inc (MLR) has a strong cash position with a balance of $27.4 million, up from $24.3 million at the end of 2024.
- The company is well-positioned to respond to robust global military demand, with continued RFQ activity for military vehicles.
- Miller Industries Inc (MLR) reaffirmed its full-year revenue guidance of $950 million to $1 billion, indicating confidence in its business outlook.
Negative Points
- Net sales for the first quarter of 2025 declined by 35.5% compared to the same quarter last year, primarily due to normalized chassis shipment patterns.
- Net income decreased significantly to $8.1 million from $17 million in the prior year period, reflecting a challenging economic environment.
- The company faces ongoing uncertainty due to evolving tariff environments and regulatory challenges, particularly with the Advanced Clean Truck regulation.
- Despite improvements, inventories and working capital remain slightly elevated, which could impact cash flow and operational flexibility.
- Miller Industries Inc (MLR) anticipates potential downward pressure on gross margins due to expected increases in chassis shipments throughout the year.
