Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Herman Miller ( MLHR) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Herman Miller as such a stock due to the following factors:
- MLHR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.8 million.
- MLHR has traded 254,181 shares today.
- MLHR is up 3% today.
- MLHR was down 6.2% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in MLHR with the Ticky from Trade-Ideas. See the FREE profile for MLHR NOW at Trade-Ideas More details on MLHR: Herman Miller, Inc. engages in the research, design, manufacture, and distribution of office furniture systems, seating products, textiles, and related services worldwide. The stock currently has a dividend yield of 1.8%. Currently there are 3 analysts that rate Herman Miller a buy, no analysts rate it a sell, and none rate it a hold. The average volume for Herman Miller has been 277,300 shares per day over the past 30 days. Herman Miller has a market cap of $1.9 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.59 and a short float of 2.5% with 3.46 days to cover. Shares are up 0.6% year-to-date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Herman Miller as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- MLHR's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 38.08% is the gross profit margin for MILLER (HERMAN) INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.25% trails the industry average.
- The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.78 is somewhat weak and could be cause for future problems.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- MILLER (HERMAN) INC has improved earnings per share by 17.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MILLER (HERMAN) INC reported lower earnings of $1.16 versus $1.29 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $1.16).
- You can view the full Herman Miller Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.