Miller Industries: Remains Underfollowed And Undervalued

Horizon Capital
713 Followers

Summary

  • When I initiated coverage of Miller Industries, I wrote that the market is ignoring the operating leverage story that will unfold due to the company's recent investments in manufacturing.
  • These investments led to improved fulfillment of the company's backlog at high margins. Earnings have surpassed my expectations, but the stock has not moved.
  • This lack of interest from the market is leaving investors with an opportunity to buy shares at a great price.
  • I maintain a buy rating on MLR and assign the stock a $60 price target based on my estimate of 2024 cash earnings per share of $4.07 and a 15x multiple.

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Miller Industries, Inc. (NYSE:MLR) has continued to post strong financial results over the past few quarters after coming off of a capex cycle which increased the company’s capacity to fulfill its backlog. The company has

This article was written by

713 Followers
I am an equity analyst and value investor, and I believe that every security has a price at which it is an attractive investment. I believe I have an edge because I am willing to explore stocks that most other investors are ignoring, and because I am not afraid to invest in stocks that are illiquid and thinly traded.I tend to focus on small cap and micro cap stocks but I write about stocks of all sizes. I take a bottoms up approach to my research but I consider economic factors in my analysis in order to create a more holistic view of the stock and business in question.I have a background in economics and 6 years of experience as an analyst. I look forward to sharing my research with my followers on Seeking Alpha as I continue to learn more over the years. I post smaller and more frequent updates on Twitter regarding some of the stocks and businesses I have researched and written about on Seeking Alpha. Please follow me @HorizonCapital1 if you wish to see these updates in addition to my general thoughts on the economy, markets and anything else I find interesting.

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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