MOHAWK INDUSTRIES INC (MHK)
US6081901042 - Common Stock
Taking everything into account, MHK scores 4 out of 10 in our fundamental rating. MHK was compared to 67 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 valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MHK was profitable.
MHK had a positive operating cash flow in the past year.
MHK had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MHK had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -3.07%, MHK is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
With a Return On Equity value of -5.43%, MHK is not doing good in the industry: 71.21% of the companies in the same industry are doing better.
MHK has a Return On Invested Capital of 5.45%. This is comparable to the rest of the industry: MHK outperforms 43.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MHK is below the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.07% | ||
| ROE | -5.43% | ||
| ROIC | 5.45% |
ROA(3y)1.4%
ROA(5y)2.67%
ROE(3y)2.27%
ROE(5y)4.4%
ROIC(3y)7.8%
ROIC(5y)7.06%
1.3 Margins
MHK has a Operating Margin (6.52%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MHK has declined.
MHK's Gross Margin of 25.40% is in line compared to the rest of the industry. MHK outperforms 45.45% of its industry peers.
MHK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.52% | ||
| PM (TTM) | N/A | ||
| GM | 25.4% |
OM growth 3Y-2.96%
OM growth 5Y-9.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.54%
GM growth 5Y-2.61%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MHK is destroying value.
Compared to 1 year ago, MHK has less shares outstanding
MHK has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MHK has remained at the same level compared to a year ago.
2.2 Solvency
MHK has an Altman-Z score of 2.71. 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 of 2.71. This is comparable to the rest of the industry: MHK outperforms 46.97% of its industry peers.
The Debt to FCF ratio of MHK is 3.84, which is a good value as it means it would take MHK, 3.84 years of fcf income to pay off all of its debts.
MHK's Debt to FCF ratio of 3.84 is in line compared to the rest of the industry. MHK outperforms 51.52% of its industry peers.
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 better Debt to Equity ratio (0.22) than 62.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.55
WACC9.92%
2.3 Liquidity
A Current Ratio of 1.83 indicates that MHK should not have too much problems paying its short term obligations.
MHK has a worse Current ratio (1.83) than 66.67% of its industry peers.
A Quick Ratio of 1.02 indicates that MHK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, MHK is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The earnings per share for MHK have decreased strongly by -14.05% in the last year.
The Earnings Per Share has been decreasing by -5.72% on average over the past years.
MHK shows a decrease in Revenue. In the last year, the revenue decreased by -4.51%.
MHK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y (TTM)-14.05%
EPS 3Y1.34%
EPS 5Y-5.72%
EPS growth Q2Q6.29%
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y5.24%
Revenue growth 5Y2.21%
Revenue growth Q2Q-4.52%
3.2 Future
The Earnings Per Share is expected to grow by 11.37% on average over the next years. This is quite good.
Based on estimates for the next years, MHK will show a small growth in Revenue. The Revenue will grow by 2.28% on average per year.
EPS Next Y5.2%
EPS Next 2Y10.77%
EPS Next 3Y13.38%
EPS Next 5Y11.37%
Revenue Next Year-1.41%
Revenue Next 2Y0.74%
Revenue Next 3Y2.05%
Revenue Next 5Y2.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.51 indicates a correct valuation of MHK.
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 28.28.
With a Price/Forward Earnings ratio of 10.32, the valuation of MHK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MHK is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. MHK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
MHK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MHK is cheaper than 80.30% 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 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.86 | ||
| EV/EBITDA | 7.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as MHK's earnings are expected to grow with 13.38% in the coming years.
PEG (NY)2.4
PEG (5Y)N/A
EPS Next 2Y10.77%
EPS Next 3Y13.38%
5. Dividend
5.1 Amount
No dividends for MHK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MOHAWK INDUSTRIES INC
NYSE:MHK (5/3/2024, 6:07:56 PM)
After market: 116.37 0 (0%)116.37
+0.75 (+0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 10.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.07% | ||
| ROE | -5.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.52% | ||
| PM (TTM) | N/A | ||
| GM | 25.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-14.05%
EPS 3Y1.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y5.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y