Herman Miller (NASDAQ: MLHR) designs
and manufactures interior furnishings for office, healthcare, educational and residential settings. Offerings include modular systems, filing and storage systems, wooden casegoods, executive task chairs and desk lamps. Products are manufactured in the U.S. and the U.K. for customers in North America, Europe, Asian and Australia.
The firm pleased investors late last month, when it reported fiscal Q4 EPS of 71 cents and revenues of $519.1 million. Analysts had been looking for 57 cents and $488.4 million. Management also guided Q1 EPS and revenues to ranges in-line with consensus Street views. In discussing the solid results, the company credited the effects of its international expansion program.
The news
kept MLHR shares cycling through a positive three month trading channel. The price is currently consolidating at the base of that channel, where an oversold stochastic parameter suggests the potential for a rise back toward the top.
Brokers recommend the issue with one "buy" and three "holds". The MLHR P/E ratio (9.70), PEG ratio (1.21), Price to Sales ratio (0.69), Price to Free Cash Flow ratio (8.25), EPS Growth rate (42.00%), Return on Assets (13.95%), Return on Investment (22.95%) and Return on Equity (64.15%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 97% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $22.25 and $33.89. A stop-loss of $21.00 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.
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