MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - NYSE:MHK - US6081901042 - Common Stock
127.36 USD
+0.37 (+0.29%)
127.36 USD
0 (0%)
MHK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 63 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.
MHK had a positive operating cash flow in the past year.
Of the past 5 years MHK 4 years were profitable.
MHK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MHK has a Return On Assets of 3.44%. This is comparable to the rest of the industry: MHK outperforms 49.18% of its industry peers.
With a Return On Equity value of 5.72%, MHK perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.33%, MHK is in line with its industry, outperforming 42.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MHK is below the industry average of 10.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 5.72% | ||
| ROIC | 5.33% |
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 (4.44%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MHK has declined.
MHK has a Operating Margin of 6.80%. This is comparable to the rest of the industry: MHK outperforms 45.90% of its industry peers.
MHK's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 25.30%, MHK perfoms like the industry average, outperforming 47.54% 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 | 6.8% | ||
| PM (TTM) | 4.44% | ||
| GM | 25.3% |
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.
Compared to 5 years ago, MHK has less shares outstanding
MHK has a better debt/assets ratio than 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.
MHK's Altman-Z score of 2.85 is in line compared to the rest of the industry. MHK outperforms 47.54% of its industry peers.
MHK has a debt to FCF ratio of 4.57. This is a neutral value as MHK would need 4.57 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.57, MHK is doing good in the industry, outperforming 60.66% of the companies in the same industry.
MHK has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
MHK has a better Debt to Equity ratio (0.21) than 60.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.63
WACC8.41%
2.3 Liquidity
A Current Ratio of 2.13 indicates that MHK has no problem at all paying its short term obligations.
MHK's Current ratio of 2.13 is in line compared to the rest of the industry. MHK outperforms 40.98% of its industry peers.
A Quick Ratio of 1.18 indicates that MHK should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.18, MHK is doing good in the industry, outperforming 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
MHK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.19%.
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.
Looking at the last year, MHK shows a decrease in Revenue. The Revenue has decreased by -1.61% in the last year.
The Revenue has been growing slightly by 1.68% on average over the past years.
EPS 1Y (TTM)-4.19%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-7.67%
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%0.03%
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.
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-5.54%
EPS Next 2Y5.19%
EPS Next 3Y8.2%
EPS Next 5Y10.35%
Revenue Next Year-0.19%
Revenue Next 2Y1.27%
Revenue Next 3Y1.72%
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
Based on the Price/Earnings ratio of 13.93, the valuation of MHK can be described as correct.
MHK's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MHK to the average of the S&P500 Index (27.40), we can say MHK is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.85, the valuation of MHK can be described as reasonable.
MHK's Price/Forward Earnings ratio is in line with the industry average.
MHK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHK is valued a bit cheaper than the industry average as 62.30% of the companies are valued more expensively.
67.21% of the companies in the same industry are more expensive than MHK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.45 | ||
| EV/EBITDA | 7.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.19%
EPS Next 3Y8.2%
5. Dividend
5.1 Amount
No dividends for MHK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
127.36
+0.37 (+0.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners84.93%
Inst Owner Change-0.02%
Ins Owners3.58%
Ins Owner Change-1.57%
Market Cap7.91B
Analysts74.78
Price Target140.22 (10.1%)
Short Float %4.83%
Short Ratio2.9
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)6.08%
Min EPS beat(2)5.28%
Max EPS beat(2)6.88%
EPS beat(4)3
Avg EPS beat(4)3.95%
Min EPS beat(4)-0.6%
Max EPS beat(4)6.88%
EPS beat(8)7
Avg EPS beat(8)4.94%
EPS beat(12)9
Avg EPS beat(12)6.18%
EPS beat(16)13
Avg EPS beat(16)6.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)0.51%
Revenue beat(4)2
Avg Revenue beat(4)0.21%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)2.94%
Revenue beat(8)4
Avg Revenue beat(8)-0.03%
Revenue beat(12)5
Avg Revenue beat(12)-0.58%
Revenue beat(16)7
Avg Revenue beat(16)-0.42%
PT rev (1m)0.92%
PT rev (3m)8.12%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-3.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.85 | ||
| P/S | 0.74 | ||
| P/FCF | 16.45 | ||
| P/OCF | 8.54 | ||
| P/B | 0.95 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 7.11 |
EPS(TTM)9.14
EY7.18%
EPS(NY)10.74
Fwd EY8.44%
FCF(TTM)7.74
FCFY6.08%
OCF(TTM)14.91
OCFY11.71%
SpS171.96
BVpS133.46
TBVpS100.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.44% | ||
| ROE | 5.72% | ||
| ROCE | 6.65% | ||
| ROIC | 5.33% | ||
| ROICexc | 5.61% | ||
| ROICexgc | 6.99% | ||
| OM | 6.8% | ||
| PM (TTM) | 4.44% | ||
| GM | 25.3% | ||
| FCFM | 4.5% |
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%
ROICexcg growth 3Y-17.3%
ROICexcg 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-Score7
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 4.57 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 72.02% | ||
| Cap/Sales | 4.17% | ||
| Interest Coverage | 14.71 | ||
| Cash Conversion | 68.88% | ||
| Profit Quality | 101.43% | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.85 |
F-Score7
WACC8.41%
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)-4.19%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-7.67%
EPS Next Y-5.54%
EPS Next 2Y5.19%
EPS Next 3Y8.2%
EPS Next 5Y10.35%
Revenue 1Y (TTM)-1.61%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%0.03%
Revenue Next Year-0.19%
Revenue Next 2Y1.27%
Revenue Next 3Y1.72%
Revenue Next 5Y2.35%
EBIT growth 1Y-6.71%
EBIT growth 3Y-15.95%
EBIT growth 5Y-2.76%
EBIT Next Year63.03%
EBIT Next 3Y23.43%
EBIT Next 5Y17.9%
FCF growth 1Y8.94%
FCF growth 3Y2.39%
FCF growth 5Y-4.89%
OCF growth 1Y-6.16%
OCF growth 3Y-4.68%
OCF growth 5Y-4.38%