MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MHK - US6081901042 - Common Stock
110.69 USD
-1.27 (-1.13%)
110.5 USD
-0.19 (-0.17%)
MHK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 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
In the past year MHK was profitable.
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's Return On Assets of 3.09% is in line compared to the rest of the industry. MHK outperforms 49.18% of its industry peers.
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's Return On Invested Capital of 4.97% is in line compared to the rest of the industry. MHK outperforms 40.98% of its industry peers.
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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of MHK has declined.
With a Operating Margin value of 6.33%, MHK perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
In the last couple of years the Operating Margin of MHK has declined.
Looking at the Gross Margin, with a value of 25.11%, MHK is in line with its industry, 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
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.
Compared to 5 years ago, MHK has less shares outstanding
Compared to 1 year ago, MHK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.80 indicates that MHK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.80, MHK is in line with its industry, outperforming 45.90% of the companies in the same industry.
MHK has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as MHK would need 3.27 years to pay back of all of its debts.
MHK's Debt to FCF ratio of 3.27 is fine compared to the rest of the industry. MHK outperforms 65.57% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that MHK is not too dependend on debt financing.
MHK has a Debt to Equity ratio of 0.21. This is in the better half 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 | 2.8 |
ROIC/WACC0.63
WACC7.95%
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.
MHK has a Current ratio (2.25) which is in line with its industry peers.
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
MHK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.33%.
The Earnings Per Share has been decreasing by -0.63% on average over the past years.
Looking at the last year, MHK shows a decrease in Revenue. The Revenue has decreased by -0.82% in the last year.
The Revenue has been growing slightly by 1.68% on average over the past years.
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.
MHK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.35% yearly.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.42, the valuation of MHK can be described as correct.
MHK's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.46. MHK is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.90 indicates a reasonable valuation of MHK.
MHK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MHK is cheaper than 70.49% of the companies in the same industry.
MHK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHK is valued cheaper than 81.97% of the companies in the same industry.
MHK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MHK is cheaper than 77.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.71 | ||
| EV/EBITDA | 6.31 |
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 |
110.69
-1.27 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners86.7%
Inst Owner Change1.85%
Ins Owners3.57%
Ins Owner Change-1.19%
Market Cap6.88B
Revenue(TTM)10.72B
Net Income(TTM)421.10M
Analysts75.65
Price Target141.68 (28%)
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 | 12.42 | ||
| Fwd PE | 10.9 | ||
| P/S | 0.64 | ||
| P/FCF | 11.71 | ||
| P/OCF | 6.92 | ||
| P/B | 0.83 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 6.31 |
EPS(TTM)8.91
EY8.05%
EPS(NY)10.16
Fwd EY9.18%
FCF(TTM)9.45
FCFY8.54%
OCF(TTM)15.99
OCFY14.45%
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 | 2.8 |
F-Score6
WACC7.95%
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 2Y1.22%
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 12.42 and the Price/Book (PB) ratio is 0.83.