MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
NYSE:MHK - New York Stock Exchange, Inc. - US6081901042 - Common Stock - Currency: USD
Taking everything into account, MHK scores 4 out of 10 in our fundamental rating. MHK was compared to 64 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 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.
In the past 5 years MHK always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.05%, MHK is in line with its industry, outperforming 46.88% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.85%, MHK is in line with its industry, outperforming 42.19% of the companies in the same industry.
With a Return On Invested Capital value of 6.32%, MHK perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MHK is significantly below the industry average of 12.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 6.85% | ||
| ROIC | 6.32% |
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 (4.78%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MHK has declined.
MHK's Operating Margin of 7.36% is in line compared to the rest of the industry. MHK outperforms 50.00% of its industry peers.
MHK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 25.54%, MHK is in line with its industry, outperforming 46.88% of the companies in the same industry.
MHK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.36% | ||
| PM (TTM) | 4.78% | ||
| GM | 25.54% |
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.
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 2.88 indicates that MHK is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.88, MHK perfoms like the industry average, outperforming 54.69% of the companies in the same industry.
MHK has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as MHK would need 3.29 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.29, MHK is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
MHK has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
MHK has a Debt to Equity ratio of 0.22. This is in the better half of the industry: MHK outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.82
WACC7.74%
2.3 Liquidity
A Current Ratio of 2.06 indicates that MHK has no problem at all paying its short term obligations.
With a Current ratio value of 2.06, MHK perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
MHK has a Quick Ratio of 1.12. This is a normal value and indicates that MHK is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MHK (1.12) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.66% over the past year.
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 -2.68%.
The Revenue has been growing slightly by 1.68% on average over the past years.
EPS 1Y (TTM)5.66%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-0.51%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%0.95%
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 10.60% yearly.
The Revenue is expected to grow by 2.79% on average over the next years.
EPS Next Y-0.98%
EPS Next 2Y8.82%
EPS Next 3Y9.57%
EPS Next 5Y10.6%
Revenue Next Year-0.03%
Revenue Next 2Y1.51%
Revenue Next 3Y1.94%
Revenue Next 5Y2.79%
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
Based on the Price/Earnings ratio of 10.96, the valuation of MHK can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MHK is on the same level as its industry peers.
MHK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.85.
With a Price/Forward Earnings ratio of 11.07, the valuation of MHK can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as MHK.
MHK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 11.07 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than MHK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MHK is valued a bit cheaper than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.79 | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.82%
EPS Next 3Y9.57%
5. Dividend
5.1 Amount
MHK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
106.45
+0.1 (+0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners81.08%
Inst Owner Change0.66%
Ins Owners3.65%
Ins Owner Change8.72%
Market Cap6.66B
Analysts76.36
Price Target137.6 (29.26%)
Short Float %4.15%
Short Ratio2.81
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)1
Avg EPS beat(2)1.81%
Min EPS beat(2)-0.6%
Max EPS beat(2)4.23%
EPS beat(4)3
Avg EPS beat(4)5.33%
Min EPS beat(4)-0.6%
Max EPS beat(4)9.78%
EPS beat(8)7
Avg EPS beat(8)8.01%
EPS beat(12)9
Avg EPS beat(12)7.72%
EPS beat(16)13
Avg EPS beat(16)8.75%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)2.94%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)2.94%
Revenue beat(8)4
Avg Revenue beat(8)0.26%
Revenue beat(12)5
Avg Revenue beat(12)-0.13%
Revenue beat(16)8
Avg Revenue beat(16)0.19%
PT rev (1m)-5.89%
PT rev (3m)-13.27%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-26.6%
EPS NY rev (1m)-0.83%
EPS NY rev (3m)-13.61%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-3.8%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 11.07 | ||
| P/S | 0.61 | ||
| P/FCF | 9.79 | ||
| P/OCF | 5.87 | ||
| P/B | 0.88 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)9.71
EY9.12%
EPS(NY)9.62
Fwd EY9.03%
FCF(TTM)10.87
FCFY10.21%
OCF(TTM)18.14
OCFY17.04%
SpS173.33
BVpS120.78
TBVpS90.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 6.85% | ||
| ROCE | 7.89% | ||
| ROIC | 6.32% | ||
| ROICexc | 6.77% | ||
| ROICexgc | 8.48% | ||
| OM | 7.36% | ||
| PM (TTM) | 4.78% | ||
| GM | 25.54% | ||
| FCFM | 6.27% |
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-Score8
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 71.19% | ||
| Cap/Sales | 4.19% | ||
| Interest Coverage | 11.64 | ||
| Cash Conversion | 79% | ||
| Profit Quality | 131.28% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.88 |
F-Score8
WACC7.74%
ROIC/WACC0.82
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)5.66%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-0.51%
EPS Next Y-0.98%
EPS Next 2Y8.82%
EPS Next 3Y9.57%
EPS Next 5Y10.6%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%0.95%
Revenue Next Year-0.03%
Revenue Next 2Y1.51%
Revenue Next 3Y1.94%
Revenue Next 5Y2.79%
EBIT growth 1Y10.47%
EBIT growth 3Y-15.95%
EBIT growth 5Y-2.76%
EBIT Next Year72.63%
EBIT Next 3Y25.03%
EBIT Next 5Y18.15%
FCF growth 1Y-5.14%
FCF growth 3Y2.39%
FCF growth 5Y-4.89%
OCF growth 1Y-14.69%
OCF growth 3Y-4.68%
OCF growth 5Y-4.38%