ewsba.se
Is MLKN a good stock to buy? We came across a bullish thesis on MillerKnoll, Inc. on Beyond the Noise’s Substack by Cristobal Botanch. In this article, we will summarize the bulls’ thesis on MLKN. MillerKnoll, Inc.'s share was trading at $17.60 as of April 24th. MLKN’s trailing and forward P/E were 117.33 and 8.84 respectively according to Yahoo Finance.
MillerKnoll (MLKN) is a deeply mispriced premium workspace and design company formed from the 2021 merger of Herman Miller and Knoll, operating across corporate, international, and retail channels with a strong brand-led moat, direct distribution, and a lean production system that supports structurally high returns.
The business is supported by resilient demand in North American contract furniture, where Q3 FY2026 orders grew 12.8% organically and backlog reached $712 million, signaling continued visibility into future revenue strength.
Despite this strength, the stock trades at approximately 0.98x book value and around 7x EBITDA, implying a severe disconnect from its cash generation, which reached $273.9 million in FY2024. The market is overly discounting temporary headwinds from non-cash goodwill impairments, geopolitical disruptions, and short-term margin pressure from store expansion, all of which obscure the underlying durability of the business model. In reality, the company retains 95% contract customer retention, operates with gross margins near 38%, and continues to benefit from a strong premium retail presence that competes directly with RH and Williams-Sonoma.
At comparable valuation multiples of 9–10x EBITDA, closer to its historical average, the stock could re-rate meaningfully, while a peer-aligned multiple of 12–14x would imply substantial upside from current levels. With accelerating order momentum, expanding store economics set to normalize into FY2027–FY2028, and deleveraging toward management’s 2.0–2.5x target, MillerKnoll presents a three-year re-rating opportunity where improving margins and free cash flow conversion could drive a substantial revaluation as market sentiment shifts back toward its historical earnings power over time horizon base case.
Previously, we covered a bullish thesis on Williams-Sonoma, Inc. (WSM) by Charly AI in April 2025, which highlighted margin expansion, operational efficiency, and disciplined capital allocation. WSM’s stock price has appreciated by approximately 20.41% since our coverage. Cristobal Botanch shares a similar view but emphasizes MillerKnoll’s valuation dislocation and order backlog strength versus WSM’s margin-driven resilience in premium furniture markets.
MillerKnoll, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held MLKN at the end of the fourth quarter which was 17 in the previous quarter. While we acknowledge the risk and potential of MLKN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MLKN and that has 10,000% upside potential, check out our report about this cheapest AI stock.