MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MHK - US6081901042 - Common Stock
120.65 USD
+1.61 (+1.35%)
120.65 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. The financial health of MHK is average, but there are quite some concerns on its profitability. MHK has a correct valuation and a medium 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.
Of the past 5 years MHK 4 years were profitable.
Each year in the past 5 years MHK had a positive operating cash flow.
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.
The Return On Invested Capital of MHK (4.97%) is worse than 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MHK is below the industry average of 9.73%.
| 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
The Profit Margin of MHK (3.93%) is comparable to the rest of the industry.
MHK's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.33%, MHK is in line with its industry, outperforming 45.00% of the companies in the same 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.
MHK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MHK has been reduced compared to 5 years ago.
MHK has a better debt/assets ratio than last year.
2.2 Solvency
MHK has an Altman-Z score of 2.86. 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.
The Altman-Z score of MHK (2.86) is comparable to the rest of the industry.
MHK has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as MHK would need 3.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.27, MHK is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
MHK has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
MHK has a Debt to Equity ratio of 0.21. This is in the better half of the industry: MHK outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.59
WACC8.44%
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.
MHK's Current ratio of 2.25 is in line compared to the rest of the industry. MHK outperforms 41.67% of its industry peers.
A Quick Ratio of 1.24 indicates that MHK should not have too much problems paying 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%.
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)-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.
MHK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.35% yearly.
EPS Next Y-7.03%
EPS Next 2Y2.05%
EPS Next 3Y6.99%
EPS Next 5Y10.35%
Revenue Next Year0.21%
Revenue Next 2Y1.18%
Revenue Next 3Y1.94%
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
Based on the Price/Earnings ratio of 13.54, 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 rather cheap valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 11.93 indicates a reasonable valuation of MHK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MHK indicates a somewhat cheap valuation: MHK is cheaper than 70.00% of the companies listed in the same industry.
MHK is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 11.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHK is valued a bit cheaper than 75.00% of the companies in the same industry.
75.00% of the companies in the same industry are more expensive than MHK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.77 | ||
| EV/EBITDA | 6.71 |
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
No dividends for MHK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
120.65
+1.61 (+1.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.69%
Inst Owner Change0.16%
Ins Owners3.57%
Ins Owner Change0.05%
Market Cap7.50B
Revenue(TTM)10.72B
Net Income(TTM)421.10M
Analysts75.45
Price Target141 (16.87%)
Short Float %5.05%
Short Ratio2.27
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)-0.48%
PT rev (3m)0.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 11.93 | ||
| P/S | 0.7 | ||
| P/FCF | 12.77 | ||
| P/OCF | 7.54 | ||
| P/B | 0.9 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)8.91
EY7.38%
EPS(NY)10.11
Fwd EY8.38%
FCF(TTM)9.45
FCFY7.83%
OCF(TTM)15.99
OCFY13.26%
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 | 2.86 |
F-Score6
WACC8.44%
ROIC/WACC0.59
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 Year0.21%
Revenue Next 2Y1.18%
Revenue Next 3Y1.94%
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 13.54 and the Price/Book (PB) ratio is 0.9.
How financially healthy is MOHAWK INDUSTRIES INC?
The financial health rating of MOHAWK INDUSTRIES INC (MHK) is 6 / 10.