MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - NYSE:MHK - US6081901042 - Common Stock
108.85 USD
+0.77 (+0.71%)
108.85 USD
0 (0%)
Overall MHK gets a fundamental rating of 4 out of 10. We evaluated MHK against 61 industry peers in the Household Durables industry. The financial health of MHK is average, but 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.
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's Return On Assets of 3.09% is in line compared to the rest of the industry. MHK outperforms 49.18% of its industry peers.
With a Return On Equity value of 5.05%, MHK is not doing good in the industry: 60.66% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.97%, MHK is in line with its industry, outperforming 40.98% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MHK is below the industry average of 9.86%.
| 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
MHK has a Profit Margin (3.93%) which is in line with its industry peers.
MHK's Profit Margin has declined in the last couple of years.
The Operating Margin of MHK (6.33%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MHK has declined.
With a Gross Margin value of 25.11%, MHK perfoms like the industry average, outperforming 49.18% of the companies in the same industry.
In the last couple of years the Gross Margin of MHK has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
MHK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.78 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 2.78, MHK is in line with its industry, outperforming 47.54% of the companies in the same 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 65.57% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that MHK is not too dependend on debt financing.
MHK's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. MHK outperforms 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.63
WACC7.94%
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 42.62% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that MHK should not have too much problems paying its short term obligations.
The Quick ratio of MHK (1.24) is better than 60.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The earnings per share for MHK have decreased by -8.33% in the last year.
The Earnings Per Share has been decreasing by -0.63% on average over the past years.
The Revenue has decreased by -0.82% in the past year.
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.
Based on estimates for the next years, MHK will show a small growth in Revenue. The Revenue will grow by 2.35% on average per year.
EPS Next Y-7.03%
EPS Next 2Y2.27%
EPS Next 3Y7.12%
EPS Next 5Y10.35%
Revenue Next Year0.21%
Revenue Next 2Y1.21%
Revenue Next 3Y1.98%
Revenue Next 5Y2.35%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 12.22, MHK is valued correctly.
MHK's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.28, MHK is valued rather cheaply.
MHK is valuated reasonably with a Price/Forward Earnings ratio of 10.72.
Based on the Price/Forward Earnings ratio, MHK is valued a bit cheaper than 65.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.61. MHK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 10.72 |
4.2 Price Multiples
MHK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MHK is cheaper than 75.41% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MHK is valued a bit cheaper than the industry average as 73.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.52 | ||
| EV/EBITDA | 6.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.27%
EPS Next 3Y7.12%
5. Dividend
5.1 Amount
MHK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
108.85
+0.77 (+0.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners84.93%
Inst Owner Change-0.97%
Ins Owners3.58%
Ins Owner Change-1.07%
Market Cap6.76B
Revenue(TTM)10.72B
Net Income(TTM)421.10M
Analysts75
Price Target142.26 (30.69%)
Short Float %3.58%
Short Ratio2.45
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)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)1.46%
PT rev (3m)3.68%
EPS NQ rev (1m)-8.16%
EPS NQ rev (3m)-7.97%
EPS NY rev (1m)-1.57%
EPS NY rev (3m)-1.99%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 10.72 | ||
| P/S | 0.63 | ||
| P/FCF | 11.52 | ||
| P/OCF | 6.81 | ||
| P/B | 0.81 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 6.19 |
EPS(TTM)8.91
EY8.19%
EPS(NY)10.16
Fwd EY9.33%
FCF(TTM)9.45
FCFY8.68%
OCF(TTM)15.99
OCFY14.69%
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 | 2.78 |
F-Score6
WACC7.94%
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)-8.33%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-7.93%
EPS Next Y-7.03%
EPS Next 2Y2.27%
EPS Next 3Y7.12%
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 2Y1.21%
Revenue Next 3Y1.98%
Revenue Next 5Y2.35%
EBIT growth 1Y-17.36%
EBIT growth 3Y-15.95%
EBIT growth 5Y-2.76%
EBIT Next Year63.03%
EBIT Next 3Y23.43%
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 of MOHAWK INDUSTRIES INC (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.
Can you provide the PE and PB ratios for MHK stock?
The Price/Earnings (PE) ratio for MOHAWK INDUSTRIES INC (MHK) is 12.22 and the Price/Book (PB) ratio is 0.81.