Miller Industries Isn't Cheap Enough To Justify An Upgrade

Daniel Jones Investing Group Leader Follow Summary Miller Industries, Inc. has surged 17.6% recently, outpacing the S&P 500, driven by strong revenue growth and the Omars acquisition. Despite higher revenue, MLR's net income and core cash flow metrics declined due to increased tariffs and lower-margin chassis sales. Management guides for FY revenue of $850–$900 million but expects EPS and cash flows to remain flat versus last year. I maintain a Hold rating, as MLR's valuation is not compelling relative to peers and bottom line improvements are needed. Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » MattGush/iStock via Getty Images To be perfectly honest with you, I am amazed at how much upside shares of Miller Industries, Inc. ( MLR ) have seen over the last few months. Back in early June of this year, This article was written by Daniel Jones 37.82K Followers Follow Daniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.