Miller Industries Provides Attractive Total Return Potential

Antti Leinonen
342 Followers

Summary

  • Due to inflationary headwinds, the stock is back to its 13-year-old trend line. As has been seen historically, there's a good potential and probability for a reversal.
  • An analysis of long-term financials highlights the quality of the company and management. The company has a track record of profitable growth.
  • Based on conservative assumptions, the stock is below its intrinsic value. If the historical growth repeats, the stock has a significant upside.
  • Miller Industries has a healthy balance sheet and a safe dividend that lower the downside risk.

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This article was written by

342 Followers
I focus on investment ideas about companies that pay a (healthy) dividend while you wait for capital appreciation. I like to find good businesses which reward shareholders. The shares of the company should be for a temporary reason undervalued in relation to its fundamentals, peers and/or historical levels. Technically and fundamentally there needs to be high odds for capital appreciation preferably by foreseeable catalysts. These elements provide a simple filter to invest in companies that reward shareholders in two ways. I often cover HVAC related stocks since that's the industry I was professionally involved before turning into a full-time investor.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MLR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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