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MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis

NYSE:MHK - New York Stock Exchange, Inc. - US6081901042 - Common Stock - Currency: USD

120.33  -1.64 (-1.34%)

After market: 120.33 0 (0%)

Fundamental Rating

4

Taking everything into account, MHK scores 4 out of 10 in our fundamental rating. MHK was compared to 67 industry peers in the Household Durables industry. While MHK seems to be doing ok healthwise, there are quite some concerns on its profitability. MHK is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year MHK was profitable.
MHK had a positive operating cash flow in the past year.
In multiple years MHK reported negative net income over the last 5 years.
Of the past 5 years MHK 4 years had a positive operating cash flow.
MHK Yearly Net Income VS EBIT VS OCF VS FCFMHK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

1.2 Ratios

MHK has a Return On Assets (4.24%) which is in line with its industry peers.
MHK's Return On Equity of 7.18% is in line compared to the rest of the industry. MHK outperforms 44.62% of its industry peers.
With a Return On Invested Capital value of 6.15%, MHK perfoms like the industry average, outperforming 49.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MHK is below the industry average of 12.07%.
Industry RankSector 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%
MHK Yearly ROA, ROE, ROICMHK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 15

1.3 Margins

MHK has a Profit Margin of 5.22%. This is comparable to the rest of the industry: MHK outperforms 50.77% of its industry peers.
MHK's Operating Margin of 7.60% is in line compared to the rest of the industry. MHK outperforms 52.31% of its industry peers.
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 47.69% of its industry peers.
MHK's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
MHK Yearly Profit, Operating, Gross MarginsMHK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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5

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.
There is no outstanding debt for MHK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
MHK Yearly Shares OutstandingMHK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
MHK Yearly Total Debt VS Total AssetsMHK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

2.2 Solvency

MHK has an Altman-Z score of 2.89. 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.
The Altman-Z score of MHK (2.89) is comparable to the rest of the industry.
The Debt to FCF ratio of MHK is 4.37, which is a neutral value as it means it would take MHK, 4.37 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MHK (4.37) is better than 61.54% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that MHK is not too dependend on debt financing.
MHK has a Debt to Equity ratio (0.22) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 4.37
Altman-Z 2.89
ROIC/WACC0.75
WACC8.23%
MHK Yearly LT Debt VS Equity VS FCFMHK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 2.03 indicates that MHK has no problem at all paying its short term obligations.
The Current ratio of MHK (2.03) is comparable to the rest of the industry.
MHK has a Quick Ratio of 1.09. This is a normal value and indicates that MHK is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.09, MHK perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.03
Quick Ratio 1.09
MHK Yearly Current Assets VS Current LiabilitesMHK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

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3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.66% over the past year.
MHK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.63% yearly.
EPS 1Y (TTM)5.66%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-0.51%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.95%

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 12.26% on average per year.
Based on estimates for the next years, MHK will show a small growth in Revenue. The Revenue will grow by 2.64% on average per year.
EPS Next Y11.07%
EPS Next 2Y14.06%
EPS Next 3Y11.26%
EPS Next 5Y12.26%
Revenue Next Year0.78%
Revenue Next 2Y1.89%
Revenue Next 3Y2.52%
Revenue Next 5Y2.64%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
MHK Yearly Revenue VS EstimatesMHK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B 10B
MHK Yearly EPS VS EstimatesMHK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 12.39, the valuation of MHK can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as MHK.
Compared to an average S&P500 Price/Earnings ratio of 28.12, MHK is valued rather cheaply.
MHK is valuated reasonably with a Price/Forward Earnings ratio of 11.16.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MHK is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of MHK to the average of the S&P500 Index (94.77), we can say MHK is valued rather cheaply.
Industry RankSector Rank
PE 12.39
Fwd PE 11.16
MHK Price Earnings VS Forward Price EarningsMHK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MHK is valued a bit cheaper than 78.46% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MHK is valued a bit cheaper than 66.15% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.21
EV/EBITDA 6.49
MHK Per share dataMHK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

4.3 Compensation for Growth

MHK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.12
PEG (5Y)N/A
EPS Next 2Y14.06%
EPS Next 3Y11.26%

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0

5. Dividend

5.1 Amount

No dividends for MHK!.
Industry RankSector Rank
Dividend Yield N/A

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MOHAWK INDUSTRIES INC

NYSE:MHK (2/7/2025, 8:04:00 PM)

After market: 120.33 0 (0%)

120.33

-1.64 (-1.34%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-06 2025-02-06/amc
Earnings (Next)N/A N/A
Inst Owners83.98%
Inst Owner Change-1.18%
Ins Owners3.59%
Ins Owner Change1.1%
Market Cap7.60B
Analysts75.45
Price Target152.8 (26.98%)
Short Float %2.34%
Short Ratio1.75
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
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)-3.69%
PT rev (3m)-13.31%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-17.51%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-2.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
Industry RankSector Rank
PE 12.39
Fwd PE 11.16
P/S 0.7
P/FCF 15.21
P/OCF 7.35
P/B 0.97
P/tB 1.3
EV/EBITDA 6.49
EPS(TTM)9.71
EY8.07%
EPS(NY)10.79
Fwd EY8.96%
FCF(TTM)7.91
FCFY6.57%
OCF(TTM)16.37
OCFY13.6%
SpS171.29
BVpS124.36
TBVpS92.37
PEG (NY)1.12
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.89
F-Score7
WACC8.23%
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)5.66%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-0.51%
EPS Next Y11.07%
EPS Next 2Y14.06%
EPS Next 3Y11.26%
EPS Next 5Y12.26%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.95%
Revenue Next Year0.78%
Revenue Next 2Y1.89%
Revenue Next 3Y2.52%
Revenue Next 5Y2.64%
EBIT growth 1Y27%
EBIT growth 3Y2.13%
EBIT growth 5Y-7.07%
EBIT Next Year76.71%
EBIT Next 3Y26.4%
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%