Miller Industries Inc. Overview of Business and Intrinsic Value of shares

 

 

MILLER INDUSTRIES, INC. a Tennessee Corporation, is the Largest Manufacturer of Towing and Recovery equipment.

Listed on New York Stock Exchange Miller Industries has a total of four manufacturing facilities in the United States, one in England, and one in France.

 

Miller Industries Inc. has reported total revenue of US$1153 Million and Net income of US$58 Million during the fiscal year 2023.

 

 

 

FCFE Details of Miller Industries, Inc. shown below, US$ in millions, except per share data

Year	Value	FCFE or Terminal Value	Present Value at 13.33%
0	FCFE0	73	73
1	FCFE1	83	64
2	FCFE2	95	65
3	FCFE3	109	66
4	FCFE4	124	67
5	FCFE5	140	65
5	Terminal Value (TV5)	2172	401

Intrinsic value of Miller Industries, Inc.	$1563
Market cap of Miller Industries, Inc.	$63.82 Billion
Intrinsic value of Miller Industries, Inc. common stock (per share)	$136.54
Current share price on 12/30/2024	$65.17

 

Required rate of Return

Assumptions

Rate of return on LT Treasury Composite(Rf)	4.36%
Expected rate of return on market portfolio(E(RM)	13.81%
Systematic risk of Miller Industries, Inc.. Common stock (β)	0.95
Required rate of return on Miller Industries, Inc.. Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 4.36% +0.95[13.81% - 4.36%]	13.33%

 

 

 

 

 

 

FCFE Growth rate Forecast

Miller Industries, Inc. H-Model

Year	Value	Growth Rate
1	g1 (PRAT Model)	14.88%
2	g2 (Linear Interpolation)	14.45%
3	g3 (Linear Interpolation)	14.02%
4	g4 (Linear Interpolation)	13.59%
5	g5 (Single stage model)	13.17%

 

Financial year 2023-24 Ratio Calculations

Retention rate	85.77%
Dividend yield	1.17%
Profit margin	5.03%
Asset turnover	1.78
Financial Leverage	1.86
Return on Asset	8.96%
Return on Equity	16.71%
EPS	5.1
PE Ratio	12.77

 

 

 

 

 

 

 

 

Sources : Form 10K of Miller Industries, Inc. for the fiscal year 2023 https://www.millerind.com/investors/reports-proxies , https://www.stock-analysis-on.net/ , https://finance.yahoo.com , https://companiesmarketcap.com/

 

 

 

 

Disclosures

This report is based on information obtained in good faith from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments.