MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MHK - US6081901042 - Common Stock
112.49 USD
-0.17 (-0.15%)
112.49 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 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.
In the past 5 years MHK always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MHK (3.09%) is comparable to the rest of the industry.
With a Return On Equity value of 5.05%, MHK perfoms like the industry average, outperforming 42.62% of the companies in the same industry.
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 9.73%.
| 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
The Profit Margin of MHK (3.93%) is comparable to the rest of the industry.
MHK's Profit Margin has declined in the last couple of years.
The Operating Margin of MHK (6.33%) is comparable to the rest of the industry.
MHK's Operating Margin has declined in the last couple of years.
MHK has a Gross Margin of 25.11%. This is comparable to the rest of the industry: MHK outperforms 50.82% of its industry peers.
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.
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
MHK has an Altman-Z score of 2.82. 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 (2.82) which is in line with 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.
MHK has a better Debt to FCF ratio (3.27) than 65.57% 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 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.6
WACC8.32%
2.3 Liquidity
MHK has a Current Ratio of 2.25. This indicates that MHK is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.25, MHK is in line with its industry, 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'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%.
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
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-7.03%
EPS Next 2Y2.27%
EPS Next 3Y7.12%
EPS Next 5Y10.35%
Revenue Next Year0.21%
Revenue Next 2Y1.22%
Revenue Next 3Y1.97%
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
A Price/Earnings ratio of 12.63 indicates a correct valuation of MHK.
MHK's Price/Earnings ratio is in line with the industry average.
MHK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.54.
Based on the Price/Forward Earnings ratio of 11.08, the valuation of MHK can be described as reasonable.
Based on the Price/Forward Earnings ratio, MHK is valued a bit cheaper than 68.85% of the companies in the same industry.
MHK is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHK is valued cheaply inside the industry as 83.61% of the companies are valued more expensively.
MHK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MHK is cheaper than 78.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.9 | ||
| EV/EBITDA | 6.41 |
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 |
112.49
-0.17 (-0.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.7%
Inst Owner Change1.87%
Ins Owners3.57%
Ins Owner Change-1.19%
Market Cap6.99B
Revenue(TTM)10.72B
Net Income(TTM)421.10M
Analysts75.65
Price Target141.68 (25.95%)
Short Float %4.08%
Short Ratio2.7
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)-0.41%
PT rev (3m)3.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.63 | ||
| Fwd PE | 11.08 | ||
| P/S | 0.65 | ||
| P/FCF | 11.9 | ||
| P/OCF | 7.03 | ||
| P/B | 0.84 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 6.41 |
EPS(TTM)8.91
EY7.92%
EPS(NY)10.16
Fwd EY9.03%
FCF(TTM)9.45
FCFY8.4%
OCF(TTM)15.99
OCFY14.22%
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 | 2.82 |
F-Score6
WACC8.32%
ROIC/WACC0.6
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 2Y1.22%
Revenue Next 3Y1.97%
Revenue Next 5Y2.35%
EBIT growth 1Y-17.36%
EBIT growth 3Y-15.95%
EBIT growth 5Y-2.76%
EBIT Next Year62.3%
EBIT Next 3Y23.19%
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 12.63 and the Price/Book (PB) ratio is 0.84.