Miller Industries, Inc. (MLR): A Bull Case Theory

We came across a bullish thesis on Miller Industries, Inc. (MLR) on Flyover Stocks’ Substack. In this article, we will summarize the bulls’ thesis on MLR. Miller Industries, Inc. (MLR)'s share was trading at $44.34 as of 23^rd March. MLR’s trailing P/E was 9.45 according to Yahoo Finance.

Miller Industries, headquartered in the small town of Ooltewah, Tennessee, is the world’s largest manufacturer of towing and recovery equipment, serving a critical but often overlooked niche. Founded in 1990 by William Miller, the company aggressively consolidated the fragmented towing equipment market by acquiring major brands like Holmes, Century, and Vulcan International during a depressed market, streamlining operations and boosting efficiency.

Since going public in 1994, Miller has grown steadily with revenue, EBITDA, and net income increasing at annual rates of 8.2%, 11.4%, and 13.3%, respectively. Despite low analyst coverage and operating in an unglamorous industry, the company maintains a clean balance sheet and has recently increased focus on returning value to shareholders through dividends and buybacks. Miller’s specialized heavy-duty equipment is essential for roadside recovery, disaster response, and off-highway equipment transport, making it a key player in an essential infrastructure sector.

Current challenges for Miller include navigating California’s stringent Advanced Clean Technology (ACT) regulations, managing inventory cycles, and dealing with supply chain and tariff complexities. These regulatory and operational factors will influence near-term performance, but Miller’s entrenched market leadership, ongoing consolidation strategy, and focus on shareholder returns position it well for sustainable growth. The company’s niche expertise and steady expansion in a stable industry offer investors a classic “Flyover Stock” profile: solid fundamentals, modest but consistent growth, and limited market hype, making Miller Industries a compelling candidate for those seeking long-term exposure to a resilient industrial equipment manufacturer with attractive valuation and clear growth prospects.

Miller Industries, Inc. (MLR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held MLR at the end of the fourth quarter which was 15 in the previous quarter. While we acknowledge the risk and potential of MLR 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 timeframe. If you are looking for an AI stock that is more promising than MLR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.