MillerKnoll (MLKN): Reassessing Valuation as Revenue Declines Are Forecast Ahead of Quarterly Results
MillerKnoll (MLKN) steps back into the spotlight this week as it reports quarterly results, with investors weighing last quarter’s upside surprise against fresh expectations for revenue to slip and earnings to cool.
See our latest analysis for MillerKnoll.
Despite the latest share price of $16.64 and a recent 1 month share price return of 12.74% suggesting a short term rebound, MillerKnoll’s year to date share price return of negative 25.75% and 1 year total shareholder return of negative 31.48% show that long term momentum has been fading as investors reassess demand for office and contract furnishings.
If this earnings setup has you rethinking where growth and resilience might show up next, now could be a good time to explore fast growing stocks with high insider ownership for fresh ideas beyond MillerKnoll.
With the stock trading at roughly half of Wall Street’s price target but facing shrinking revenue forecasts and recent losses, is MillerKnoll being unfairly punished, or is the market already discounting any realistic path back to growth?
Most Popular Narrative Narrative: 48% Undervalued
With MillerKnoll last closing at 16.64 dollars against a narrative fair value of 32 dollars, the gap in expectations is striking and centers on a slow but profitable recovery story.
The analysts have a consensus price target of 38.0 dollars for MillerKnoll based on their expectations of its future earnings growth, profit margins and other risk factors.
In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be 4.0 billion dollars, earnings will come to 293.0 million dollars, and it would be trading on a PE ratio of 10.8x, assuming you use a discount rate of 9.1 percent.
Curious how modest revenue growth, a sharp margin rebound, and a compressed future earnings multiple can still justify that kind of upside? The full narrative unpacks the math, reveals the pivotal assumptions, and shows exactly how those moving pieces add up to that fair value.
Result: Fair Value of $32 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, lingering margin pressure from tariffs and weaker North American contract orders could quickly undercut the recovery case if demand fails to stabilize.
Find out about the key risks to this MillerKnoll narrative.
Build Your Own MillerKnoll Narrative
If the outlook here does not quite match your own view, dive into the numbers yourself and craft a personalized narrative in just minutes: Do it your way.
A great starting point for your MillerKnoll research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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