MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MHK - US6081901042 - Common Stock
115.5 USD
+1.08 (+0.94%)
115.5 USD
0 (0%)
Taking everything into account, MHK scores 4 out of 10 in our fundamental rating. MHK was compared to 61 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
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
With a Return On Assets value of 3.09%, MHK perfoms like the industry average, outperforming 49.18% of the companies in the same industry.
The Return On Equity of MHK (5.05%) is comparable to the rest of the industry.
The Return On Invested Capital of MHK (4.97%) 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 9.75%.
| 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
MHK has a Profit Margin (3.93%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MHK has declined.
MHK has a Operating Margin (6.33%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MHK has declined.
With a Gross Margin value of 25.11%, MHK perfoms like the industry average, outperforming 50.82% of the companies in the same industry.
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.
The number of shares outstanding for MHK has been reduced compared to 1 year ago.
The number of shares outstanding for MHK has been reduced compared to 5 years ago.
The debt/assets ratio for MHK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.84 indicates that MHK is not a great score, but indicates only limited risk for bankruptcy at the moment.
MHK's Altman-Z score of 2.84 is in line compared to the rest of the industry. MHK outperforms 47.54% of its industry peers.
The Debt to FCF ratio of MHK is 3.27, which is a good value as it means it would take MHK, 3.27 years of fcf income to pay off 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.
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 65.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.84 |
ROIC/WACC0.63
WACC7.84%
2.3 Liquidity
A Current Ratio of 2.25 indicates that MHK has no problem at all paying its short term obligations.
With a Current ratio value of 2.25, MHK perfoms like the industry average, outperforming 42.62% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that MHK should not have too much problems paying its short term obligations.
MHK has a better Quick ratio (1.24) than 60.66% of its industry peers.
| 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.
Measured over the past years, MHK shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.63% on average per year.
MHK shows a decrease in Revenue. In the last year, the revenue decreased by -0.82%.
Measured over the past years, MHK shows a small growth in Revenue. The Revenue has been growing by 1.68% on average per year.
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
The Earnings Per Share is expected to grow by 10.35% 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 2.35% on average per year.
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
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 12.96, which indicates a correct valuation of MHK.
MHK's Price/Earnings is on the same level as the industry average.
MHK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
MHK is valuated reasonably with a Price/Forward Earnings ratio of 11.37.
Based on the Price/Forward Earnings ratio, MHK is valued a bit cheaper than the industry average as 67.21% of the companies are valued more expensively.
MHK is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHK is valued a bit cheaper than 72.13% 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 75.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.22 | ||
| EV/EBITDA | 6.54 |
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
MHK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
115.5
+1.08 (+0.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners84.93%
Inst Owner Change1.85%
Ins Owners3.58%
Ins Owner Change-1.19%
Market Cap7.18B
Revenue(TTM)10.72B
Net Income(TTM)421.10M
Analysts75
Price Target142.98 (23.79%)
Short Float %3.9%
Short Ratio2.54
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)1.97%
PT rev (3m)4.21%
EPS NQ rev (1m)-7.36%
EPS NQ rev (3m)-8.1%
EPS NY rev (1m)-1.36%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.96 | ||
| Fwd PE | 11.37 | ||
| P/S | 0.67 | ||
| P/FCF | 12.22 | ||
| P/OCF | 7.22 | ||
| P/B | 0.86 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 6.54 |
EPS(TTM)8.91
EY7.71%
EPS(NY)10.16
Fwd EY8.79%
FCF(TTM)9.45
FCFY8.18%
OCF(TTM)15.99
OCFY13.85%
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 | 2.84 |
F-Score6
WACC7.84%
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 12.96 and the Price/Book (PB) ratio is 0.86.