MLR - Miller Industries: Inventory Frontloading Continues To Be A Winning Strategy For Now

2024-01-29 20:29:54 ET

Summary

• Miller Industries has seen a 33%+ increase in top-line sales in Q3, driven by elevated demand and improved deliveries.
• The company's liquidity metrics, including the current ratio and quick ratio, indicate no adverse issues at this time.
• Miller's solvency and dividend trends remain solid, but improved free cash flow generation is needed to ease working capital commitments.

Intro

We wrote about Miller Industries, Inc. ( MLR ) back in October of last year when we stated that the company's high working capital needs would most likely lead to more consolidation in the share price over the near term. Despite the company's impressive Q3 earnings report which was announced last November, shares have only rallied approximately 5.7% since our previous commentary (October 9th) with the S&P rallying almost 13.5% over the same timeframe....

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