MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - NYSE:MHK - US6081901042 - Common Stock
109.83 USD
+0.98 (+0.9%)
109.83 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 has a correct valuation and a medium 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.
MHK had positive earnings in 4 of the past 5 years.
In the past 5 years MHK always reported a positive cash flow from operatings.
1.2 Ratios
MHK has a Return On Assets (3.09%) which is comparable to the rest of the industry.
MHK's Return On Equity of 5.05% is on the low side compared to the rest of the industry. MHK is outperformed by 60.66% of its industry peers.
MHK has a Return On Invested Capital (4.97%) which is comparable to the rest of the 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
Looking at the Profit Margin, with a value of 3.93%, MHK is in line with its industry, outperforming 49.18% of the companies in the same industry.
In the last couple of years the Profit Margin of MHK has declined.
With a Operating Margin value of 6.33%, MHK perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
In the last couple of years the Operating Margin of MHK has declined.
MHK has a Gross Margin (25.11%) which is comparable to the rest of the industry.
MHK's Gross Margin has declined in the last couple of years.
| 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
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
The number of shares outstanding for MHK has been reduced compared to 5 years ago.
Compared to 1 year ago, MHK has an improved debt to assets ratio.
2.2 Solvency
MHK has an Altman-Z score of 2.80. 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's Altman-Z score of 2.80 is in line compared to the rest of the industry. MHK outperforms 47.54% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.27, MHK is doing good in the industry, outperforming 65.57% of the companies in the same industry.
MHK has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.21, MHK is in the better half of the industry, outperforming 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.63
WACC7.95%
2.3 Liquidity
A Current Ratio of 2.25 indicates that MHK has no problem at all paying its short term obligations.
MHK has a Current ratio (2.25) which is comparable to the rest of the industry.
MHK has a Quick Ratio of 1.24. This is a normal value and indicates that MHK is financially healthy and should not expect problems in meeting its short term obligations.
MHK's Quick ratio of 1.24 is fine compared to the rest of the industry. MHK outperforms 60.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
MHK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.33%.
The Earnings Per Share has been decreasing by -0.63% on average over the past years.
Looking at the last year, MHK shows a decrease in Revenue. The Revenue has decreased by -0.82% in the last year.
MHK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.68% yearly.
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.
The Revenue is expected to grow by 2.35% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 12.33 indicates a correct valuation of MHK.
The rest of the industry has a similar Price/Earnings ratio as MHK.
When comparing the Price/Earnings ratio of MHK to the average of the S&P500 Index (26.34), we can say MHK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.81, the valuation of MHK can be described as reasonable.
Based on the Price/Forward Earnings ratio, MHK is valued a bit cheaper than 65.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MHK to the average of the S&P500 Index (34.43), we can say MHK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHK is valued a bit 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 | 11.62 | ||
| EV/EBITDA | 6.27 |
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
No dividends for MHK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
109.83
+0.98 (+0.9%)
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 Cap6.82B
Revenue(TTM)10.72B
Net Income(TTM)421.10M
Analysts75
Price Target142.26 (29.53%)
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 | 12.33 | ||
| Fwd PE | 10.81 | ||
| P/S | 0.64 | ||
| P/FCF | 11.62 | ||
| P/OCF | 6.87 | ||
| P/B | 0.82 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 6.27 |
EPS(TTM)8.91
EY8.11%
EPS(NY)10.16
Fwd EY9.25%
FCF(TTM)9.45
FCFY8.61%
OCF(TTM)15.99
OCFY14.56%
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 | 2.8 |
F-Score6
WACC7.95%
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 12.33 and the Price/Book (PB) ratio is 0.82.