MOHAWK INDUSTRIES INC (MHK)
US6081901042 - Common Stock
MHK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 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.
MHK had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MHK had a positive operating cash flow.
1.2 Ratios
MHK's Return On Assets of 4.24% is in line compared to the rest of the industry. MHK outperforms 46.15% of its industry peers.
The Return On Equity of MHK (7.18%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.15%, MHK is in line with its industry, outperforming 47.69% of the companies in the same industry.
MHK had an Average Return On Invested Capital over the past 3 years of 7.80%. This is below the industry average of 12.04%.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 5.22%, MHK is in line with its industry, outperforming 49.23% of the companies in the same industry.
MHK has a Operating Margin (7.60%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MHK has declined.
MHK has a Gross Margin (25.60%) 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 | 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%
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.
MHK has less shares outstanding than it did 1 year ago.
MHK has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MHK has remained at the same level compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.05 indicates that MHK is not in any danger for bankruptcy at the moment.
MHK has a Altman-Z score (3.05) which is in line with its industry peers.
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.
MHK has a Debt to FCF ratio of 4.37. This is comparable to the rest of the industry: MHK outperforms 58.46% of its industry peers.
MHK has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
MHK's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. MHK outperforms 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 3.05 |
ROIC/WACC0.76
WACC8.13%
2.3 Liquidity
A Current Ratio of 2.03 indicates that MHK has no problem at all paying its short term obligations.
MHK has a Current ratio (2.03) which is in line with its industry peers.
A Quick Ratio of 1.09 indicates that MHK should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.09, MHK perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
MHK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.68%, which is quite good.
MHK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.72% yearly.
Looking at the last year, MHK shows a decrease in Revenue. The Revenue has decreased by -3.24% in the last year.
MHK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.21% yearly.
EPS 1Y (TTM)13.68%
EPS 3Y1.34%
EPS 5Y-5.72%
EPS Q2Q%6.62%
Revenue 1Y (TTM)-3.24%
Revenue growth 3Y5.24%
Revenue growth 5Y2.21%
Sales Q2Q%-1.71%
3.2 Future
MHK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.37% yearly.
Based on estimates for the next years, MHK will show a small growth in Revenue. The Revenue will grow by 2.28% on average per year.
EPS Next Y5.55%
EPS Next 2Y10.72%
EPS Next 3Y13.2%
EPS Next 5Y11.37%
Revenue Next Year-3.12%
Revenue Next 2Y-0.61%
Revenue Next 3Y0.66%
Revenue Next 5Y2.28%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.92 indicates a correct valuation of MHK.
MHK's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.56. MHK is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.87 indicates a correct valuation of MHK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MHK is on the same level as its industry peers.
MHK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 12.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MHK indicates a rather cheap valuation: MHK is cheaper than 84.62% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MHK is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.33 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MHK does not grow enough to justify the current Price/Earnings ratio.
MHK's earnings are expected to grow with 13.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.69
PEG (5Y)N/A
EPS Next 2Y10.72%
EPS Next 3Y13.2%
5. Dividend
5.1 Amount
No dividends for MHK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MOHAWK INDUSTRIES INC
NYSE:MHK (11/25/2024, 8:01:03 PM)
After market: 145.03 0 (0%)145.03
+6.26 (+4.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 12.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.69
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 7.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.6% | ||
| PM (TTM) | 5.22% | ||
| GM | 25.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.68%
EPS 3Y1.34%
EPS 5Y
EPS Q2Q%
EPS Next Y5.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.24%
Revenue growth 3Y5.24%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y