TSC Ratings' Updates: Herman Miller

NRGY's very impressive revenue growth exceeded the industry average of 30.2%. Since the same quarter one year prior, revenue leaped by 51.5%. Growth in the company's revenue appears to have helped boost the earnings per share.

NRGY has improved earnings per share by 22.1% in the most-recent quarter compared with the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, NRGY turned its bottom line around by earning 72 cents vs. -12 cents in the prior year. This year, the market expects an improvement in earnings (89 cents vs. 72 cents).

The gross profit margin for NRGY is rather low; currently it is at 22.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -5.50% is significantly below that of the industry average.

NRGY's stock share price has done very poorly compared with where it was a year ago: Despite any rallies, the net result is that it is down by 35.72%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, NRGY is still more expensive than most of the other companies in its industry.