MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - NYSE:MHK - US6081901042 - Common Stock
127.58 USD
+1.87 (+1.49%)
We assign a fundamental rating of 4 out of 10 to MHK. MHK was compared to 63 industry peers in the Household Durables industry. MHK scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MHK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MHK had positive earnings in the past year.
MHK had a positive operating cash flow in the past year.
MHK had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MHK had a positive operating cash flow.
1.2 Ratios
MHK has a Return On Assets (3.44%) which is in line with its industry peers.
With a Return On Equity value of 5.72%, MHK perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
MHK has a Return On Invested Capital (5.33%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for MHK is below the industry average of 10.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 5.72% | ||
| ROIC | 5.33% |
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
The Profit Margin of MHK (4.44%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MHK has declined.
MHK has a Operating Margin (6.80%) which is in line with its industry peers.
MHK's Operating Margin has declined in the last couple of years.
MHK has a Gross Margin (25.30%) which is in line with its industry peers.
MHK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.8% | ||
| PM (TTM) | 4.44% | ||
| GM | 25.3% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MHK is destroying value.
Compared to 1 year ago, MHK has less shares outstanding
Compared to 5 years ago, MHK has less shares outstanding
Compared to 1 year ago, MHK has an improved debt to assets ratio.
2.2 Solvency
MHK has an Altman-Z score of 2.84. This is not the best score and indicates that MHK is in the grey zone with still only limited risk for bankruptcy at the moment.
MHK has a Altman-Z score (2.84) which is in line with its industry peers.
MHK has a debt to FCF ratio of 4.57. This is a neutral value as MHK would need 4.57 years to pay back of all of its debts.
MHK has a better Debt to FCF ratio (4.57) than 60.32% 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 Debt to Equity ratio value of 0.21, MHK perfoms like the industry average, outperforming 58.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.63
WACC8.41%
2.3 Liquidity
MHK has a Current Ratio of 2.13. This indicates that MHK is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.13, MHK is doing worse than 60.32% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that MHK should not have too much problems paying its short term obligations.
The Quick ratio of MHK (1.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for MHK have decreased by -4.19% in the last year.
MHK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.63% yearly.
The Revenue has decreased by -1.61% in the past year.
Measured over the past years, MHK shows a small growth in Revenue. The Revenue has been growing by 1.68% on average per year.
EPS 1Y (TTM)-4.19%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-7.67%
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%0.03%
3.2 Future
The Earnings Per Share is expected to grow by 10.35% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.35% on average over the next years.
EPS Next Y-5.54%
EPS Next 2Y5.19%
EPS Next 3Y8.2%
EPS Next 5Y10.35%
Revenue Next Year-0.19%
Revenue Next 2Y1.27%
Revenue Next 3Y1.72%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.96, the valuation of MHK can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as MHK.
MHK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.49.
Based on the Price/Forward Earnings ratio of 11.87, the valuation of MHK can be described as reasonable.
MHK's Price/Forward Earnings is on the same level as the industry average.
MHK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHK is valued a bit cheaper than 66.67% of the companies in the same industry.
MHK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MHK is cheaper than 65.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.48 | ||
| EV/EBITDA | 7.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.19%
EPS Next 3Y8.2%
5. Dividend
5.1 Amount
No dividends for MHK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:MHK (10/15/2025, 2:56:10 PM)
127.58
+1.87 (+1.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners84.93%
Inst Owner Change-0.02%
Ins Owners3.58%
Ins Owner Change-1.57%
Market Cap7.93B
Analysts74.78
Price Target140.22 (9.91%)
Short Float %4.83%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)6.08%
Min EPS beat(2)5.28%
Max EPS beat(2)6.88%
EPS beat(4)3
Avg EPS beat(4)3.95%
Min EPS beat(4)-0.6%
Max EPS beat(4)6.88%
EPS beat(8)7
Avg EPS beat(8)4.94%
EPS beat(12)9
Avg EPS beat(12)6.18%
EPS beat(16)13
Avg EPS beat(16)6.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)0.51%
Revenue beat(4)2
Avg Revenue beat(4)0.21%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)2.94%
Revenue beat(8)4
Avg Revenue beat(8)-0.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.58%
Revenue beat(16)7
Avg Revenue beat(16)-0.42%
PT rev (1m)2.2%
PT rev (3m)9.14%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 11.87 | ||
| P/S | 0.74 | ||
| P/FCF | 16.48 | ||
| P/OCF | 8.55 | ||
| P/B | 0.96 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 7.04 |
EPS(TTM)9.14
EY7.16%
EPS(NY)10.74
Fwd EY8.42%
FCF(TTM)7.74
FCFY6.07%
OCF(TTM)14.91
OCFY11.69%
SpS171.96
BVpS133.46
TBVpS100.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 5.72% | ||
| ROCE | 6.65% | ||
| ROIC | 5.33% | ||
| ROICexc | 5.61% | ||
| ROICexgc | 6.99% | ||
| OM | 6.8% | ||
| PM (TTM) | 4.44% | ||
| GM | 25.3% | ||
| FCFM | 4.5% |
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%
ROICexcg growth 3Y-17.3%
ROICexcg 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-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 4.57 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 72.02% | ||
| Cap/Sales | 4.17% | ||
| Interest Coverage | 14.71 | ||
| Cash Conversion | 68.88% | ||
| Profit Quality | 101.43% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.84 |
F-Score7
WACC8.41%
ROIC/WACC0.63
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)-4.19%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-7.67%
EPS Next Y-5.54%
EPS Next 2Y5.19%
EPS Next 3Y8.2%
EPS Next 5Y10.35%
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%0.03%
Revenue Next Year-0.19%
Revenue Next 2Y1.27%
Revenue Next 3Y1.72%
Revenue Next 5Y2.35%
EBIT growth 1Y-6.71%
EBIT growth 3Y-15.95%
EBIT growth 5Y-2.76%
EBIT Next Year63.03%
EBIT Next 3Y23.43%
EBIT Next 5Y17.9%
FCF growth 1Y8.94%
FCF growth 3Y2.39%
FCF growth 5Y-4.89%
OCF growth 1Y-6.16%
OCF growth 3Y-4.68%
OCF growth 5Y-4.38%