MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
NYSE:MHK - US6081901042 - Common Stock
133.21 USD
+9.04 (+7.28%)
133 USD
-0.21 (-0.16%)
MHK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a decent growth rate and is not valued too expensively.
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.
MHK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MHK has a Return On Assets of 3.44%. This is comparable to the rest of the industry: MHK outperforms 50.79% of its industry peers.
MHK has a Return On Equity of 5.72%. This is comparable to the rest of the industry: MHK outperforms 42.86% of its industry peers.
The Return On Invested Capital of MHK (5.33%) 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 10.42%.
| 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
MHK has a Profit Margin of 4.44%. This is comparable to the rest of the industry: MHK outperforms 52.38% of its industry peers.
In the last couple of years the Profit Margin of MHK has declined.
MHK has a Operating Margin of 6.80%. This is comparable to the rest of the industry: MHK outperforms 49.21% of its industry peers.
In the last couple of years the Operating Margin of MHK has declined.
The Gross Margin of MHK (25.30%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MHK has declined.
| 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
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.
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 2.89. 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.
With a Altman-Z score value of 2.89, MHK perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
The Debt to FCF ratio of MHK is 4.57, which is a neutral value as it means it would take MHK, 4.57 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.57, MHK is doing good in the industry, outperforming 63.49% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that MHK is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.21, MHK is doing good in the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.66
WACC8.13%
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.
MHK has a Current ratio of 2.13. This is comparable to the rest of the industry: MHK outperforms 44.44% of its industry peers.
MHK has a Quick Ratio of 1.18. This is a normal value and indicates that MHK is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.18, MHK is doing good in the industry, outperforming 60.32% of the companies in the same 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.
MHK shows a decrease in Revenue. In the last year, the revenue decreased by -1.61%.
The Revenue has been growing slightly by 1.68% on average over the past years.
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
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.
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 3Y1.71%
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
The Price/Earnings ratio is 14.57, which indicates a correct valuation of MHK.
MHK's Price/Earnings ratio is in line with the industry average.
MHK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.40, the valuation of MHK can be described as correct.
MHK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MHK is cheaper than 63.49% of the companies in the same industry.
MHK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.4 |
4.2 Price Multiples
69.84% of the companies in the same industry are more expensive than MHK, based on the Enterprise Value to EBITDA ratio.
MHK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MHK is cheaper than 73.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.2 | ||
| EV/EBITDA | 7.38 |
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 |
133.21
+9.04 (+7.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners83.08%
Inst Owner Change1.03%
Ins Owners3.6%
Ins Owner Change-2.65%
Market Cap8.28B
Analysts75.65
Price Target137.21 (3%)
Short Float %4.94%
Short Ratio2.84
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)5.8%
PT rev (3m)5.38%
EPS NQ rev (1m)-2.65%
EPS NQ rev (3m)-11.21%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.4 | ||
| P/S | 0.77 | ||
| P/FCF | 17.2 | ||
| P/OCF | 8.93 | ||
| P/B | 1 | ||
| P/tB | 1.32 | ||
| EV/EBITDA | 7.38 |
EPS(TTM)9.14
EY6.86%
EPS(NY)10.74
Fwd EY8.07%
FCF(TTM)7.74
FCFY5.81%
OCF(TTM)14.91
OCFY11.2%
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 | 2.89 |
F-Score7
WACC8.13%
ROIC/WACC0.66
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 3Y1.71%
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 3Y23.33%
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%