The following ratings changes were generated on September 18. Herman Miller ( MLHR) has been upgraded from hold to buy. Herman Miller engages in the research, design, manufacture, and distribution of interior furnishings for various environments, including office, healthcare, educational and residential settings. The company's strengths can be seen in multiple areas, such as its notable return on equity, growth in earnings per share and relatively strong performance when compared with the S&P 500 during the past year. We feel these strengths outweigh the fact that the company shows low profit margins. The company's current return on equity greatly increased when compared to its return on equity from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared with other companies in the commercial services & supplies industry and the overall market, MLHR's return on equity significantly exceeds that of both the industry average and the S&P 500. MLHR has improved earnings per share by 11.1% 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 two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, MLHR increased its bottom line by earning $2.57 vs. $1.99 in the prior year. For the next year, the market is expecting a contraction of 3.1% in earnings ($2.49 vs. $2.57). MLHR, with its decline in revenue, slightly underperformed the industry average of 2.5%. Since the same quarter one year prior, revenue has slightly dropped by 2.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.