MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - NYSE:MHK - US6081901042 - Common Stock
131.28 USD
-5.49 (-4.01%)
131.51 USD
+0.23 (+0.18%)
Taking everything into account, MHK scores 4 out of 10 in our fundamental rating. MHK was compared to 63 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MHK was profitable.
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
With a Return On Assets value of 3.44%, MHK perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
MHK has a Return On Equity of 5.72%. This is comparable to the rest of the industry: MHK outperforms 42.86% of its industry peers.
With a Return On Invested Capital value of 5.33%, MHK perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
MHK had an Average Return On Invested Capital over the past 3 years of 6.82%. This is below the industry average of 10.51%.
| 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
MHK has a Profit Margin of 4.44%. This is comparable to the rest of the industry: MHK outperforms 52.38% of its industry peers.
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 47.62% of its industry peers.
MHK's Operating Margin has declined in the last couple of years.
MHK has a Gross Margin (25.30%) which is comparable to the rest of the industry.
MHK's Gross Margin has declined in the last couple of years.
| 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
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
The debt/assets ratio for MHK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.88 indicates that MHK is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.88, MHK perfoms like the industry average, outperforming 50.79% of the companies in the same industry.
The Debt to FCF ratio of MHK is 4.57, which is a neutral value as it means it would take MHK, 4.57 years of fcf income to pay off all of its debts.
MHK has a Debt to FCF ratio of 4.57. This is in the better half of the industry: MHK outperforms 63.49% of its industry peers.
MHK has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.21, MHK is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.64
WACC8.28%
2.3 Liquidity
A Current Ratio of 2.13 indicates that MHK has no problem at all paying its short term obligations.
MHK has a Current ratio (2.13) which is comparable to the rest of the industry.
A Quick Ratio of 1.18 indicates that MHK should not have too much problems paying its short term obligations.
MHK's Quick ratio of 1.18 is fine compared to the rest of the industry. MHK outperforms 60.32% of its industry peers.
| 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%.
MHK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.63% yearly.
MHK shows a decrease in Revenue. In the last year, the revenue decreased by -1.61%.
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
MHK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.35% yearly.
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-5.54%
EPS Next 2Y5.19%
EPS Next 3Y8.2%
EPS Next 5Y10.35%
Revenue Next Year-0.18%
Revenue Next 2Y1.28%
Revenue Next 3Y1.72%
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
MHK is valuated correctly with a Price/Earnings ratio of 14.36.
Compared to the rest of the industry, the Price/Earnings ratio of MHK is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.20. MHK is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.22, the valuation of MHK can be described as correct.
MHK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MHK is cheaper than 61.90% of the companies in the same industry.
MHK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHK is valued a bit cheaper than 69.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MHK is valued a bit cheaper than the industry average as 73.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.95 | ||
| EV/EBITDA | 7.29 |
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
MHK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
131.28
-5.49 (-4.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners83.08%
Inst Owner Change1.03%
Ins Owners3.6%
Ins Owner Change-1.57%
Market Cap8.16B
Analysts73.91
Price Target138.95 (5.84%)
Short Float %4.8%
Short Ratio2.92
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)1.27%
PT rev (3m)8.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.67%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.22 | ||
| P/S | 0.76 | ||
| P/FCF | 16.95 | ||
| P/OCF | 8.8 | ||
| P/B | 0.98 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 7.29 |
EPS(TTM)9.14
EY6.96%
EPS(NY)10.74
Fwd EY8.18%
FCF(TTM)7.74
FCFY5.9%
OCF(TTM)14.91
OCFY11.36%
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 | 2.88 |
F-Score7
WACC8.28%
ROIC/WACC0.64
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-0.18%
Revenue Next 2Y1.28%
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 3Y23.33%
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%