Simply Wall St spotlights Miller Industries stock as potentially undervalued

The stock of towing and recovery equipment manufacturer Miller Industries is deserving of attention from both current and potential investors, according to analysts at Simply Wall St. They point out that the company has a low P/E ratio relative to its peers, indicating bigger upside.

Details

Simply Wall St believes that Miller Industries’ stock is deserving of investor attention. Miller Industries has a favorable P/E of 9.6 versus an average of 21.65 for other machinery industry players, the analysts explain. This makes the company’s stock cheaper than the broad sector. In addition, Miller Industries’ share price is quite volatile, meaning more opportunities to buy, Simply Wall St adds.

Context

Miller Industries produces specialized towing and recovery vehicles, supplying them worldwide. In 2023, the company’s revenue reached $1.15 billion, up almost 36% versus the previous year. Earnings per share hit $5.07, a nearly 185% year-over-year increase. The company noted its ‘record’ 2023 performance and said that it expects another record year for both the top and bottom lines in 2024. Simply Wall St believes that these optimistic earnings expectations are not yet fully reflected in the current share price.

What others are saying

Over the past year, Miller Industries’ stock is up more than 57%. According to MarketWatch, a single analyst covers the company. He has a buy recommendation, with a target price of $68 per share, indicating upside of more than 23% from the last closing price.

InvestorPlace analysts call the company’s quarterly dividend ‘decent’ at $0.19 per share, yielding 1.3%. Simply Wall St previously noted that Miller Industries rewarded shareholders with a total return of 63% over the past 12 months, including dividends.