When Should You Buy MillerKnoll, Inc. (NASDAQ:MLKN)?

MillerKnoll, Inc. (NASDAQ: MLKN) has been a subject of interest for investors, with its stock price fluctuating over the past year. As of December 10, 2024, the company's stock is trading at $25.78, which is closer to its 52-week low of $22.35 than its high of $31.73. This raises the question: when is the right time to buy MillerKnoll's stock?

To answer this question, we need to analyze the company's financial health, market trends, and expert opinions. Let's dive into the data and insights to help you make an informed decision.



MillerKnoll's financial health can be assessed by looking at its debt-to-equity ratio, which is 0.55. This indicates a relatively low level of debt compared to its equity, suggesting a strong financial position. In comparison, the industry average debt-to-equity ratio is 0.67, which is slightly higher than MillerKnoll's. This suggests that MillerKnoll has a lower risk profile than its peers in terms of debt management.

However, MillerKnoll's return on capital employed (ROCE) has declined over the past five years. The company's current ROCE of 7.0% is significantly lower than its historical average of 17% and the industry average of 10%. This decline is driven by a decrease in sales and an increase in operating expenses. MillerKnoll's sales have decreased by 11.2% over the past five years, while operating expenses have increased by 4.2%. Additionally, the company's gross margin has improved by 410 basis points over the past year, but this has not been enough to offset the decline in sales.



Despite these challenges, MillerKnoll has been reinvesting for long-term growth, as indicated by the increase in capital employed. As the company's investments start to contribute to the bottom line, we may see an improvement in its ROCE.

Expert opinions on MillerKnoll vary. Some analysts believe that the company's focus on sustainability and innovation will drive long-term growth, while others are concerned about the decline in sales and operating expenses. It is essential to consider multiple perspectives and factors when evaluating MillerKnoll's potential for growth.

In conclusion, the right time to buy MillerKnoll's stock depends on your investment goals, risk tolerance, and time horizon. While the company's financial health appears strong, its ROCE has declined over the past five years. However, MillerKnoll's focus on sustainability and innovation may drive long-term growth. It is crucial to monitor the company's financial performance, market trends, and expert opinions to make an informed decision.