MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MHK - US6081901042 - Common Stock
118.43 USD
-2.03 (-1.69%)
Taking everything into account, MHK scores 4 out of 10 in our fundamental rating. MHK was compared to 60 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 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.
- MHK had a positive operating cash flow in the past year.
- MHK had positive earnings in 4 of the past 5 years.
- MHK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MHK has a Return On Assets (3.09%) which is comparable to the rest of the industry.
- With a Return On Equity value of 5.05%, MHK perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- MHK's Return On Invested Capital of 4.97% is on the low side compared to the rest of the industry. MHK is outperformed by 60.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MHK is below the industry average of 9.70%.
| 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
- With a Profit Margin value of 3.93%, MHK perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of MHK has declined.
- MHK has a Operating Margin of 6.33%. This is comparable to the rest of the industry: MHK outperforms 45.00% of its industry peers.
- MHK's Operating Margin has declined in the last couple of years.
- MHK has a Gross Margin (25.11%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of MHK has declined.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MHK 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.
- Compared to 1 year ago, MHK has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.87 indicates that MHK is not a great score, but indicates only limited risk for bankruptcy at the moment.
- MHK has a Altman-Z score (2.87) which is comparable to the rest of the industry.
- 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.
- MHK has a Debt to FCF ratio of 3.27. This is in the better half of the industry: MHK outperforms 63.33% of its industry peers.
- A Debt/Equity ratio of 0.21 indicates that MHK is not too dependend on debt financing.
- MHK's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. MHK outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.58
WACC8.53%
2.3 Liquidity
- A Current Ratio of 2.25 indicates that MHK has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.25, MHK is in line with its industry, outperforming 41.67% of the companies in the same 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.
- Looking at the Quick ratio, with a value of 1.24, MHK is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
- The earnings per share for MHK have decreased by -8.33% 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 -0.82%.
- 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
- 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.
- The Revenue is expected to grow by 2.35% on average over the next years.
EPS Next Y-7.02%
EPS Next 2Y1.88%
EPS Next 3Y6.33%
EPS Next 5Y10.35%
Revenue Next Year0.26%
Revenue Next 2Y1.24%
Revenue Next 3Y1.91%
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
- The Price/Earnings ratio is 13.29, which indicates a correct valuation of MHK.
- Compared to the rest of the industry, the Price/Earnings ratio of MHK is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.25. MHK is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 11.75, the valuation of MHK can be described as reasonable.
- 68.33% of the companies in the same industry are more expensive than MHK, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. MHK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.29 | ||
| Fwd PE | 11.75 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MHK indicates a somewhat cheap valuation: MHK is cheaper than 73.33% of the companies listed in the same industry.
- MHK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MHK is cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.53 | ||
| EV/EBITDA | 6.78 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.88%
EPS Next 3Y6.33%
5. Dividend
5.1 Amount
- No dividends for MHK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 for 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.
What is the valuation of MOHAWK INDUSTRIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MOHAWK INDUSTRIES INC (MHK) is 13.29 and the Price/Book (PB) ratio is 0.88.
How financially healthy is MOHAWK INDUSTRIES INC?
The financial health rating of MOHAWK INDUSTRIES INC (MHK) is 6 / 10.