MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
NYSE:MHK - New York Stock Exchange, Inc. - US6081901042 - Common Stock - Currency: USD
Overall MHK gets a fundamental rating of 4 out of 10. We evaluated MHK against 64 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
MHK had positive earnings in the past year.
In the past year MHK had a positive cash flow from operations.
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
With a Return On Assets value of 3.62%, MHK perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
MHK's Return On Equity of 6.18% is in line compared to the rest of the industry. MHK outperforms 43.75% of its industry peers.
MHK has a Return On Invested Capital of 5.87%. This is comparable to the rest of the industry: MHK outperforms 46.88% of its industry peers.
MHK had an Average Return On Invested Capital over the past 3 years of 6.82%. This is below the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 6.18% | ||
| ROIC | 5.87% |
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 of 4.54%. This is comparable to the rest of the industry: MHK outperforms 50.00% of its industry peers.
MHK's Profit Margin has declined in the last couple of years.
MHK has a Operating Margin (7.15%) which is comparable to the rest of the industry.
MHK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 25.47%, MHK is in line with its industry, outperforming 45.31% 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 | 7.15% | ||
| PM (TTM) | 4.54% | ||
| GM | 25.47% |
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.
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 2.72. 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 (2.72) which is comparable to the rest of the industry.
MHK has a debt to FCF ratio of 4.80. This is a neutral value as MHK would need 4.80 years to pay back of all of its debts.
MHK's Debt to FCF ratio of 4.80 is in line compared to the rest of the industry. MHK outperforms 59.38% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that MHK is not too dependend on debt financing.
MHK's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. MHK outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 4.8 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.64
WACC9.2%
2.3 Liquidity
A Current Ratio of 2.01 indicates that MHK has no problem at all paying its short term obligations.
MHK has a Current ratio of 2.01. This is in the lower half of the industry: MHK underperforms 60.94% of its industry peers.
A Quick Ratio of 1.13 indicates that MHK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, MHK is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.75% over the past year.
Measured over the past years, MHK shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.63% on average per year.
The Revenue has decreased by -2.95% 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)0.75%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-18.28%
Revenue 1Y (TTM)-2.95%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%-5.73%
3.2 Future
Based on estimates for the next years, MHK will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.35% on average per year.
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-4.76%
EPS Next 2Y5.68%
EPS Next 3Y8.21%
EPS Next 5Y10.35%
Revenue Next Year-0.43%
Revenue Next 2Y1.28%
Revenue Next 3Y1.83%
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
Based on the Price/Earnings ratio of 10.50, the valuation of MHK can be described as reasonable.
MHK's Price/Earnings ratio is in line with the industry average.
MHK is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
MHK is valuated reasonably with a Price/Forward Earnings ratio of 9.08.
The rest of the industry has a similar Price/Forward Earnings ratio as MHK.
MHK is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 9.08 |
4.2 Price Multiples
MHK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MHK is cheaper than 78.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MHK is valued a bit cheaper than 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.38 | ||
| EV/EBITDA | 5.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.68%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
MHK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
98.43
-4.64 (-4.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners83.17%
Inst Owner Change1.81%
Ins Owners3.58%
Ins Owner Change8.27%
Market Cap6.15B
Analysts75.65
Price Target128.48 (30.53%)
Short Float %3.2%
Short Ratio2.12
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)5.55%
Min EPS beat(2)4.23%
Max EPS beat(2)6.88%
EPS beat(4)3
Avg EPS beat(4)4.6%
Min EPS beat(4)-0.6%
Max EPS beat(4)7.91%
EPS beat(8)7
Avg EPS beat(8)4.69%
EPS beat(12)9
Avg EPS beat(12)5.89%
EPS beat(16)13
Avg EPS beat(16)7.75%
Revenue beat(2)1
Avg Revenue beat(2)0.32%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)2.94%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)2.94%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)4
Avg Revenue beat(12)-0.72%
Revenue beat(16)7
Avg Revenue beat(16)-0.03%
PT rev (1m)-1.33%
PT rev (3m)-12.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 9.08 | ||
| P/S | 0.58 | ||
| P/FCF | 12.38 | ||
| P/OCF | 6.45 | ||
| P/B | 0.78 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 5.81 |
EPS(TTM)9.37
EY9.52%
EPS(NY)10.85
Fwd EY11.02%
FCF(TTM)7.95
FCFY8.08%
OCF(TTM)15.26
OCFY15.5%
SpS170.88
BVpS125.66
TBVpS94.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | 6.18% | ||
| ROCE | 7.32% | ||
| ROIC | 5.87% | ||
| ROICexc | 6.29% | ||
| ROICexgc | 7.87% | ||
| OM | 7.15% | ||
| PM (TTM) | 4.54% | ||
| GM | 25.47% | ||
| FCFM | 4.65% |
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-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 4.8 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 71.98% | ||
| Cap/Sales | 4.27% | ||
| Interest Coverage | 13.08 | ||
| Cash Conversion | 68.21% | ||
| Profit Quality | 102.47% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.72 |
F-Score6
WACC9.2%
ROIC/WACC0.64
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)0.75%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-18.28%
EPS Next Y-4.76%
EPS Next 2Y5.68%
EPS Next 3Y8.21%
EPS Next 5Y10.35%
Revenue 1Y (TTM)-2.95%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%-5.73%
Revenue Next Year-0.43%
Revenue Next 2Y1.28%
Revenue Next 3Y1.83%
Revenue Next 5Y2.35%
EBIT growth 1Y6.37%
EBIT growth 3Y-15.95%
EBIT growth 5Y-2.76%
EBIT Next Year64.49%
EBIT Next 3Y23.72%
EBIT Next 5Y17.9%
FCF growth 1Y70.39%
FCF growth 3Y2.39%
FCF growth 5Y-4.89%
OCF growth 1Y9.45%
OCF growth 3Y-4.68%
OCF growth 5Y-4.38%