Miller Industries, a notable player in the machinery sector, has shown impressive growth with earnings surging 85% over the past year, outpacing the industry's 11%. The company repurchased 35,000 shares for US$2.05 million recently, signaling confidence in its valuation which is currently trading at nearly 68% below estimated fair value. Despite a net debt to equity ratio of 12%, considered satisfactory, Miller's interest payments are well-covered by EBIT at a healthy multiple of nearly 15x. However, challenges like negative free cash flow persist alongside robust sales growth from US$300 million to US$371 million year-over-year.

• Miller Industries' international expansion and stable order backlog suggest potential revenue growth; click here to explore the full narrative.

Stewart Information Services

Simply Wall St Value Rating: ★★★★☆☆

Overview: Stewart Information Services Corporation operates through its subsidiaries to offer title insurance and real estate transaction services both in the United States and internationally, with a market cap of approximately $1.91 billion.

Operations: Stewart Information Services generates revenue primarily from its Title segment, including mortgage services, which accounts for $2.05 billion, and Real Estate Solutions contributing $333.08 million.

Stewart Information Services, a nimble player in the market, reported impressive earnings growth of 70% over the past year, outpacing the insurance industry's 28.9%. The company's net income for Q3 2024 was US$30.1 million, doubling from US$14 million a year ago. With earnings per share rising to US$1.07 from US$0.51 and trading at 22.3% below fair value estimates, Stewart seems undervalued with high-quality earnings and robust interest coverage at 6.1 times EBIT. Despite an increased debt-to-equity ratio from 13.3% to 31.5%, its net debt level remains satisfactory at 15.3%.

• Stewart Information Services aims to enhance efficiency through strategic technology investments and acquisitions. Click here to explore the full narrative on Stewart's strategic initiatives and market positioning.

Taking Advantage

• Embark on your investment journey to our 226 US Undiscovered Gems With Strong Fundamentals selection here.

• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.

• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:CTS NYSE:MLR and NYSE:STC.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]