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 66 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 not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years MHK always reported a positive cash flow from operatings.
1.2 Ratios
MHK has a Return On Assets (4.24%) which is comparable to the rest of the industry.
MHK has a Return On Equity (7.18%) which is comparable to the rest of the industry.
MHK has a Return On Invested Capital of 6.15%. 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 7.80%. This is below the industry average of 12.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 7.18% | ||
| ROIC | 6.15% |
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 Profit Margin (5.22%) which is comparable to the rest of the industry.
MHK has a Operating Margin (7.60%) which is comparable to the rest of the industry.
MHK's Operating Margin has declined in the last couple of years.
MHK's Gross Margin of 25.60% is in line compared to the rest of the industry. MHK outperforms 46.88% of its industry peers.
MHK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.6% | ||
| PM (TTM) | 5.22% | ||
| GM | 25.6% |
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
MHK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
MHK has about the same debt/assets ratio as last year.
2.2 Solvency
MHK has an Altman-Z score of 2.85. 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.
Looking at the Altman-Z score, with a value of 2.85, MHK is in line with its industry, outperforming 45.31% of the companies in the same industry.
MHK has a debt to FCF ratio of 4.37. This is a neutral value as MHK would need 4.37 years to pay back of all of its debts.
The Debt to FCF ratio of MHK (4.37) is better than 60.94% 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's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. MHK outperforms 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.75
WACC8.18%
2.3 Liquidity
A Current Ratio of 2.03 indicates that MHK has no problem at all paying its short term obligations.
MHK has a Current ratio of 2.03. This is comparable to the rest of the industry: MHK outperforms 42.19% of its industry peers.
A Quick Ratio of 1.09 indicates that MHK should not have too much problems paying its short term obligations.
MHK has a better Quick ratio (1.09) than 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.68% over the past year.
MHK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.72% yearly.
MHK shows a decrease in Revenue. In the last year, the revenue decreased by -3.24%.
MHK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y (TTM)13.68%
EPS 3Y1.34%
EPS 5Y-5.72%
EPS Q2Q%6.62%
Revenue 1Y (TTM)-3.24%
Revenue growth 3Y5.24%
Revenue growth 5Y2.21%
Sales Q2Q%-1.71%
3.2 Future
The Earnings Per Share is expected to grow by 10.91% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.45% on average over the next years.
EPS Next Y5.59%
EPS Next 2Y10.05%
EPS Next 3Y12.67%
EPS Next 5Y10.91%
Revenue Next Year-3.12%
Revenue Next 2Y-0.66%
Revenue Next 3Y0.62%
Revenue Next 5Y1.45%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.12 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 27.40.
With a Price/Forward Earnings ratio of 10.58, the valuation of MHK can be described as very reasonable.
60.94% of the companies in the same industry are more expensive than MHK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MHK to the average of the S&P500 Index (23.67), we can say MHK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHK is valued cheaper than 82.81% of the companies in the same industry.
MHK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MHK is cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.89 | ||
| EV/EBITDA | 6.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MHK's earnings are expected to grow with 12.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.17
PEG (5Y)N/A
EPS Next 2Y10.05%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
MHK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MOHAWK INDUSTRIES INC
NYSE:MHK (1/6/2025, 4:15:00 PM)
After market: 117.77 0 (0%)117.77
+0.46 (+0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners83.98%
Inst Owner Change0%
Ins Owners3.59%
Ins Owner Change0.8%
Market Cap7.43B
Analysts72.73
Price Target158.65 (34.71%)
Short Float %1.96%
Short Ratio1.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)3.66%
Min EPS beat(2)-0.6%
Max EPS beat(2)7.91%
EPS beat(4)3
Avg EPS beat(4)5.4%
Min EPS beat(4)-0.6%
Max EPS beat(4)9.78%
EPS beat(8)6
Avg EPS beat(8)7.37%
EPS beat(12)9
Avg EPS beat(12)7.52%
EPS beat(16)13
Avg EPS beat(16)9.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-2.02%
Max Revenue beat(2)-0.29%
Revenue beat(4)2
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)0.78%
Revenue beat(8)3
Avg Revenue beat(8)-0.46%
Revenue beat(12)5
Avg Revenue beat(12)-0.33%
Revenue beat(16)8
Avg Revenue beat(16)0.32%
PT rev (1m)-0.89%
PT rev (3m)-4.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.7%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-3.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.25%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 10.58 | ||
| P/S | 0.69 | ||
| P/FCF | 14.89 | ||
| P/OCF | 7.19 | ||
| P/B | 0.95 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 6.29 |
EPS(TTM)9.72
EY8.25%
EPS(NY)11.13
Fwd EY9.45%
FCF(TTM)7.91
FCFY6.72%
OCF(TTM)16.37
OCFY13.9%
SpS171.29
BVpS124.36
TBVpS92.37
PEG (NY)2.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 7.18% | ||
| ROCE | 7.79% | ||
| ROIC | 6.15% | ||
| ROICexc | 6.41% | ||
| ROICexgc | 8.01% | ||
| OM | 7.6% | ||
| PM (TTM) | 5.22% | ||
| GM | 25.6% | ||
| FCFM | 4.62% |
ROA(3y)1.4%
ROA(5y)2.67%
ROE(3y)2.27%
ROE(5y)4.4%
ROIC(3y)7.8%
ROIC(5y)7.06%
ROICexc(3y)8.27%
ROICexc(5y)7.49%
ROICexgc(3y)11.49%
ROICexgc(5y)10.7%
ROCE(3y)9.87%
ROCE(5y)8.94%
ROICexcg growth 3Y-1.16%
ROICexcg growth 5Y-11%
ROICexc growth 3Y4.99%
ROICexc growth 5Y-7.18%
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%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 4.37 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 83.93% | ||
| Cap/Sales | 4.94% | ||
| Interest Coverage | 10.69 | ||
| Cash Conversion | 70.9% | ||
| Profit Quality | 88.55% | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 2.85 |
F-Score7
WACC8.18%
ROIC/WACC0.75
Cap/Depr(3y)103.01%
Cap/Depr(5y)94.74%
Cap/Sales(3y)5.5%
Cap/Sales(5y)5.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.68%
EPS 3Y1.34%
EPS 5Y-5.72%
EPS Q2Q%6.62%
EPS Next Y5.59%
EPS Next 2Y10.05%
EPS Next 3Y12.67%
EPS Next 5Y10.91%
Revenue 1Y (TTM)-3.24%
Revenue growth 3Y5.24%
Revenue growth 5Y2.21%
Sales Q2Q%-1.71%
Revenue Next Year-3.12%
Revenue Next 2Y-0.66%
Revenue Next 3Y0.62%
Revenue Next 5Y1.45%
EBIT growth 1Y27%
EBIT growth 3Y2.13%
EBIT growth 5Y-7.07%
EBIT Next Year76.71%
EBIT Next 3Y27.29%
EBIT Next 5Y18.01%
FCF growth 1Y647.48%
FCF growth 3Y-18.93%
FCF growth 5Y13.09%
OCF growth 1Y61.49%
OCF growth 3Y-9.1%
OCF growth 5Y2.39%