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%)
Overall MHK gets a fundamental rating of 4 out of 10. We evaluated MHK against 61 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MHK was profitable.
In the past year MHK had a positive cash flow from operations.
Of the past 5 years MHK 4 years were profitable.
Each year in the past 5 years MHK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.09%, MHK is in line with its industry, outperforming 49.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.05%, MHK is in line with its industry, outperforming 42.62% of the companies in the same industry.
With a Return On Invested Capital value of 4.97%, MHK perfoms like the industry average, outperforming 40.98% 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 9.73%.
| 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 in line with its industry peers.
MHK's Profit Margin has declined in the last couple of years.
MHK has a Operating Margin (6.33%) which is in line with its industry peers.
MHK's Operating Margin has declined in the last couple of years.
MHK has a Gross Margin (25.11%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MHK is destroying value.
MHK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MHK has been reduced compared to 5 years ago.
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.
MHK has a Altman-Z score (2.80) which is comparable to the rest of the 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 has a Debt to FCF ratio of 3.27. This is in the better half of the industry: MHK outperforms 65.57% 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.
With a decent Debt to Equity ratio value of 0.21, MHK is doing good in the industry, outperforming 65.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.6
WACC8.31%
2.3 Liquidity
A Current Ratio of 2.25 indicates that MHK has no problem at all paying its short term obligations.
MHK has a Current ratio of 2.25. This is comparable to the rest of the industry: MHK outperforms 42.62% of its industry peers.
MHK has a Quick Ratio of 1.24. This is a normal value and indicates that MHK is financially healthy and should not expect problems in meeting its short term obligations.
MHK has a Quick ratio of 1.24. This is in the better half of the industry: MHK outperforms 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%.
MHK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.63% yearly.
The Revenue has decreased by -0.82% in the past year.
MHK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.68% yearly.
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
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.
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-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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 12.42, which indicates a correct valuation of MHK.
Compared to the rest of the industry, the Price/Earnings ratio of MHK is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MHK to the average of the S&P500 Index (26.49), we can say MHK is valued rather cheaply.
The Price/Forward Earnings ratio is 10.90, which indicates a very decent 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.
When comparing the Price/Forward Earnings ratio of MHK to the average of the S&P500 Index (23.69), we can say MHK is valued rather cheaply.
| 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.
Based on the Price/Free Cash Flow ratio, MHK is valued a bit cheaper than the industry average as 77.05% of the companies are valued more expensively.
| 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
No dividends for MHK!.
| 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 Change1.87%
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
WACC8.31%
ROIC/WACC0.6
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.