Miller Industries (MLR), mcap=$272m, price $24.68 vs $27.10

Pitch: A classic situation of a great company hit by short-term challenges and trading at bargain-basement prices. World’s largest manufacturer of towing and vehicle recovery equipment. Earnings are temporarily depressed due to inflation and supply chain disruptions, but demand is at an all-time high. Management is confident of returning to historical levels of profitability.

Valuation: MLR trades at 16x cash adjusted depressed 2021 earnings. On normalized EPS of $3 (earned $3.43 bac in 2021) trades at 7.5x cash adjusted PE. At 12x multiple + cash would be $40 stock.

Exp. gain: +50% to $40/share

Full MLR write-up (free guest account required):

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