Miller Industries Inc. MLR Stock Analysis

Miller Industries Inc. stock is a Tennessee-based company that creates vehicle towing & recovery vehicles & products.

Their ticker is MLR & they have many characteristics that make them worth considering adding to your mid-to-long term portfolio.

While the current market landscape is quite volatile, I am beginning to look into a potential entry-point in the near-term, as there may be some bargain opportunities for their shares.

Miller Industries Inc. MLR Stock’s Fundamentals Look Appealing In 2022

There has been a lot of recent speculation about the tightening of interest rates in 2022.

While no one has the answer, it is certain that there will be less access to credit in the coming year.

This makes value companies particularly appealing, as they tend to not rely as heavily on it.

MLR stock has a low valuation, with a P/E(ttm) of 15.04 & a P/B(mrq) of 1.33.

Their Beta is 1.0, which implies that they do tend to move about in line with broader market indexes.

MLR stock’s Revenue Per Share(ttm) is $60.84, which looks great when compared to their share price of $34.01, despite -2.2% Quarterly Revenue Growth Y-o-Y.

Miller Industries Inc.’s balance sheet looks very appealing, with Total Cash (mrq) of $50.41M, Total Debt (mrq) of $1.25M & Total Debt/Equity of 0.43.

MLR stock’s dividend is also appealing, with a 2.11% annual yield, that looks very safe as their Payout Ratio is 32%.

86.9% of their share float is held by institutional investors, and only 0.47% of their share float is currently short.

Miller Industries Inc. MLR Stock’s Technical Breakdown

Miller Industries Inc. MLR Stock's Technical Performance Over The Last Year
Miller Industries Inc. MLR Stock’s Technical Performance Over The Last Year

MLR stock’s MACD looks about ready for a bearish crossover, which may prove to be the time to begin starting a new position.

With their beta implying that they will move about in-line with the broader market indexes, warranting a closer look.

It is worth noting that MLR is a small cap stock, making it most appropriate to compare with the Russell 2000, which is the pink line below.

The S&P 500 is the yellow line & the NASDAQ is the purple line for the comparison.

Miller Industries MLR Stock Vs. S&P 500, NASDAQ & Russell 2000 Over The Last Year
Miller Industries MLR Stock Vs. S&P 500, NASDAQ & Russell 2000 Over The Last Year

Given the nature of their financial strength outlined above, as well as the safe 2% dividend that will continue to climb as a percentage if their price goes down, this value play should be set to outperform under volatile conditions.

I will be eyeing their RSI in addition to their MACD & to begin finding an entry point, particularly when they appear to be deviating from the falling IWM (pink line above).

Tying It All Together

MLR stock looks like an interesting value play, which should outperform growth stocks as we go into financial tightening & investors become less speculative.

With a 2.11% cushion provided by their dividend yield, some potential losses can be absorbed as the market goes down.

However, with the rotation back into value-oriented names their fall shouldn’t be as extreme as other names, as investors will still seek reliable yields.

One thing of note, is that they have very illiquid put options, with nearly no open interest in the next two expiration dates.

This is something to think about, as it means it will not be as easy to hedge against a decline in share price by owning puts against them as well.

All-in-all though, it looks like Miller Industries stock is worth taking a closer look at.