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Miller Industries, Inc. (MLR)

Company Dividend Discount ModelIndustry: Auto - PartsSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$61.24 - $163.47$93.82
Multi-Stage$42.12 - $46.00$44.02
Blended Fair Value$68.92
Current Price$40.42
Upside70.51%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS1.22%2.55%0.750.710.710.710.710.710.710.710.660.63
YoY Growth--5.72%0.35%0.05%0.05%0.05%0.10%0.15%6.13%6.37%7.01%
Dividend Yield--1.77%1.43%2.00%2.51%1.53%2.50%2.27%2.82%2.52%3.08%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)30.14
(-) Cash Dividends Paid (M)9.04
(=) Cash Retained (M)21.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.033.772.26
Cash Retained (M)21.1021.1021.10
(-) Cash Required (M)-6.03-3.77-2.26
(=) Excess Retained (M)15.0717.3318.84
(/) Shares Outstanding (M)11.6011.6011.60
(=) Excess Retained per Share1.301.491.62
LTM Dividend per Share0.780.780.78
(+) Excess Retained per Share1.301.491.62
(=) Adjusted Dividend2.082.272.40
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$61.24$93.82$163.47
Upside / Downside51.50%132.11%304.43%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)30.1432.1034.1836.4038.7741.2942.53
Payout Ratio30.00%42.00%54.00%66.00%78.00%90.00%92.50%
Projected Dividends (M)9.0413.4818.4624.0330.2437.1639.34

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)12.2412.3612.47
Year 2 PV (M)15.2215.5115.81
Year 3 PV (M)18.0018.5119.04
Year 4 PV (M)20.5721.3622.17
Year 5 PV (M)22.9624.0625.22
PV of Terminal Value (M)399.68418.98439.03
Equity Value (M)488.67510.79533.74
Shares Outstanding (M)11.6011.6011.60
Fair Value$42.12$44.02$46.00
Upside / Downside4.20%8.92%13.81%

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