MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MHK - US6081901042 - Common Stock
123.62 USD
+3.8 (+3.17%)
123.62 USD
0 (0%)
Taking everything into account, MHK scores 4 out of 10 in our fundamental rating. MHK was compared to 60 industry peers in the Household Durables industry. While MHK seems to be doing ok healthwise, there are quite some concerns on its profitability. MHK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MHK was profitable.
- MHK had a positive operating cash flow in the past year.
- MHK had positive earnings in 4 of the past 5 years.
- MHK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MHK has a Return On Assets (3.09%) which is comparable to the rest of the industry.
- MHK's Return On Equity of 5.05% is in line compared to the rest of the industry. MHK outperforms 41.67% of its industry peers.
- MHK has a worse Return On Invested Capital (4.97%) than 60.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MHK is below the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 5.05% | ||
| ROIC | 4.97% |
ROA(3y)0.33%
ROA(5y)2.37%
ROE(3y)0.47%
ROE(5y)3.94%
ROIC(3y)6.82%
ROIC(5y)7.05%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.93%, MHK is in line with its industry, outperforming 45.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of MHK has declined.
- The Operating Margin of MHK (6.33%) is comparable to the rest of the industry.
- MHK's Operating Margin has declined in the last couple of years.
- MHK has a Gross Margin of 25.11%. This is comparable to the rest of the industry: MHK outperforms 50.00% of its industry peers.
- MHK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.33% | ||
| PM (TTM) | 3.93% | ||
| GM | 25.11% |
OM growth 3Y-15.02%
OM growth 5Y-4.36%
PM growth 3Y-19.69%
PM growth 5Y-8.53%
GM growth 3Y-4.53%
GM growth 5Y-1.63%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MHK is destroying value.
- The number of shares outstanding for MHK has been reduced compared to 1 year ago.
- MHK has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MHK has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.87 indicates that MHK is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.87, MHK is in line with its industry, outperforming 45.00% of the companies in the same industry.
- The Debt to FCF ratio of MHK is 3.27, which is a good value as it means it would take MHK, 3.27 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of MHK (3.27) is better than 63.33% of its industry peers.
- MHK has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.21, MHK is doing good in the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.57
WACC8.75%
2.3 Liquidity
- MHK has a Current Ratio of 2.25. This indicates that MHK is financially healthy and has no problem in meeting its short term obligations.
- With a Current ratio value of 2.25, MHK perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- MHK has a Quick Ratio of 1.24. This is a normal value and indicates that MHK is financially healthy and should not expect problems in meeting its short term obligations.
- MHK has a Quick ratio (1.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
- MHK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.33%.
- The Earnings Per Share has been decreasing by -0.63% on average over the past years.
- MHK shows a decrease in Revenue. In the last year, the revenue decreased by -0.82%.
- The Revenue has been growing slightly by 1.68% on average over the past years.
EPS 1Y (TTM)-8.33%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-7.93%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%1.43%
3.2 Future
- MHK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.35% yearly.
- The Revenue is expected to grow by 2.35% on average over the next years.
EPS Next Y-7.03%
EPS Next 2Y2.05%
EPS Next 3Y6.99%
EPS Next 5Y10.35%
Revenue Next Year0.25%
Revenue Next 2Y1.19%
Revenue Next 3Y1.89%
Revenue Next 5Y2.35%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- MHK is valuated correctly with a Price/Earnings ratio of 13.87.
- The rest of the industry has a similar Price/Earnings ratio as MHK.
- MHK is valuated rather cheaply when we compare the Price/Earnings ratio to 26.94, which is the current average of the S&P500 Index.
- MHK is valuated correctly with a Price/Forward Earnings ratio of 12.23.
- MHK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MHK is cheaper than 70.00% of the companies in the same industry.
- MHK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
- 73.33% of the companies in the same industry are more expensive than MHK, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MHK indicates a somewhat cheap valuation: MHK is cheaper than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.08 | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.05%
EPS Next 3Y6.99%
5. Dividend
5.1 Amount
- MHK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
123.62
+3.8 (+3.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)10-23 2025-10-23/amc
Earnings (Next)02-12 2026-02-12/amc
Inst Owners86.69%
Inst Owner Change0.19%
Ins Owners3.57%
Ins Owner Change0.05%
Market Cap7.68B
Revenue(TTM)10.72B
Net Income(TTM)421.10M
Analysts75.45
Price Target139.21 (12.61%)
Short Float %4.74%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.69%
Min EPS beat(2)0.09%
Max EPS beat(2)5.28%
EPS beat(4)4
Avg EPS beat(4)4.12%
Min EPS beat(4)0.09%
Max EPS beat(4)6.88%
EPS beat(8)7
Avg EPS beat(8)4.76%
EPS beat(12)10
Avg EPS beat(12)6.29%
EPS beat(16)13
Avg EPS beat(16)6.67%
Revenue beat(2)1
Avg Revenue beat(2)0.25%
Min Revenue beat(2)0%
Max Revenue beat(2)0.51%
Revenue beat(4)2
Avg Revenue beat(4)0.29%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)2.94%
Revenue beat(8)4
Avg Revenue beat(8)-0.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.21%
Revenue beat(16)7
Avg Revenue beat(16)-0.18%
PT rev (1m)-1.74%
PT rev (3m)-0.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.23 | ||
| P/S | 0.72 | ||
| P/FCF | 13.08 | ||
| P/OCF | 7.73 | ||
| P/B | 0.92 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)8.91
EY7.21%
EPS(NY)10.11
Fwd EY8.18%
FCF(TTM)9.45
FCFY7.65%
OCF(TTM)15.99
OCFY12.94%
SpS172.59
BVpS134.16
TBVpS101.44
PEG (NY)N/A
PEG (5Y)N/A
Graham Number164
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 5.05% | ||
| ROCE | 6.2% | ||
| ROIC | 4.97% | ||
| ROICexc | 5.22% | ||
| ROICexgc | 6.48% | ||
| OM | 6.33% | ||
| PM (TTM) | 3.93% | ||
| GM | 25.11% | ||
| FCFM | 5.48% |
ROA(3y)0.33%
ROA(5y)2.37%
ROE(3y)0.47%
ROE(5y)3.94%
ROIC(3y)6.82%
ROIC(5y)7.05%
ROICexc(3y)7.28%
ROICexc(5y)7.56%
ROICexgc(3y)9.46%
ROICexgc(5y)10.45%
ROCE(3y)8.51%
ROCE(5y)8.8%
ROICexgc growth 3Y-17.3%
ROICexgc growth 5Y-4.07%
ROICexc growth 3Y-12.4%
ROICexc growth 5Y-0.59%
OM growth 3Y-15.02%
OM growth 5Y-4.36%
PM growth 3Y-19.69%
PM growth 5Y-8.53%
GM growth 3Y-4.53%
GM growth 5Y-1.63%
F-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 64.23% | ||
| Cap/Sales | 3.79% | ||
| Interest Coverage | 15.97 | ||
| Cash Conversion | 75.77% | ||
| Profit Quality | 139.44% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 2.87 |
F-Score6
WACC8.75%
ROIC/WACC0.57
Cap/Depr(3y)88.65%
Cap/Depr(5y)90.05%
Cap/Sales(3y)4.88%
Cap/Sales(5y)5.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.33%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-7.93%
EPS Next Y-7.03%
EPS Next 2Y2.05%
EPS Next 3Y6.99%
EPS Next 5Y10.35%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%1.43%
Revenue Next Year0.25%
Revenue Next 2Y1.19%
Revenue Next 3Y1.89%
Revenue Next 5Y2.35%
EBIT growth 1Y-17.36%
EBIT growth 3Y-15.95%
EBIT growth 5Y-2.76%
EBIT Next Year62.3%
EBIT Next 3Y23.11%
EBIT Next 5Y17.9%
FCF growth 1Y-21.86%
FCF growth 3Y2.39%
FCF growth 5Y-4.89%
OCF growth 1Y-22.05%
OCF growth 3Y-4.68%
OCF growth 5Y-4.38%
MOHAWK INDUSTRIES INC / MHK FAQ
Can you provide the ChartMill fundamental rating for MOHAWK INDUSTRIES INC?
ChartMill assigns a fundamental rating of 4 / 10 to MHK.
What is the valuation status for MHK stock?
ChartMill assigns a valuation rating of 5 / 10 to MOHAWK INDUSTRIES INC (MHK). This can be considered as Fairly Valued.
What is the profitability of MHK stock?
MOHAWK INDUSTRIES INC (MHK) has a profitability rating of 3 / 10.
What is the valuation of MOHAWK INDUSTRIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MOHAWK INDUSTRIES INC (MHK) is 13.87 and the Price/Book (PB) ratio is 0.92.
How financially healthy is MOHAWK INDUSTRIES INC?
The financial health rating of MOHAWK INDUSTRIES INC (MHK) is 6 / 10.