MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
NYSE:MHK - New York Stock Exchange, Inc. - US6081901042 - Common Stock - Currency: USD
MHK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 64 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
MHK had positive earnings in the past year.
In the past year MHK had a positive cash flow from operations.
MHK had positive earnings in 4 of the past 5 years.
In the past 5 years MHK always reported a positive cash flow from operatings.
1.2 Ratios
MHK has a Return On Assets (4.05%) which is comparable to the rest of the industry.
MHK has a Return On Equity of 6.85%. This is comparable to the rest of the industry: MHK outperforms 42.19% of its industry peers.
MHK has a Return On Invested Capital (6.32%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MHK is significantly below the industry average of 12.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 6.85% | ||
| ROIC | 6.32% |
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's Profit Margin of 4.78% is in line compared to the rest of the industry. MHK outperforms 48.44% of its industry peers.
In the last couple of years the Profit Margin of MHK has declined.
With a Operating Margin value of 7.36%, MHK perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MHK has declined.
The Gross Margin of MHK (25.54%) 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 | 7.36% | ||
| PM (TTM) | 4.78% | ||
| GM | 25.54% |
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.
MHK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MHK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.86 indicates that MHK is not a great score, but indicates only limited risk for bankruptcy at the moment.
MHK has a Altman-Z score (2.86) which is in line with its industry peers.
MHK has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as MHK would need 3.29 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.29, MHK is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
MHK has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
MHK has a Debt to Equity ratio (0.22) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.8
WACC7.87%
2.3 Liquidity
A Current Ratio of 2.06 indicates that MHK has no problem at all paying its short term obligations.
MHK has a Current ratio of 2.06. This is comparable to the rest of the industry: MHK outperforms 46.88% of its industry peers.
A Quick Ratio of 1.12 indicates that MHK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, MHK is in line with its industry, outperforming 54.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.66% over the past year.
MHK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.63% yearly.
Looking at the last year, MHK shows a decrease in Revenue. The Revenue has decreased by -2.68% in the last 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)5.66%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-0.51%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%0.95%
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 10.60% on average per year.
MHK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.79% yearly.
EPS Next Y-0.14%
EPS Next 2Y9.88%
EPS Next 3Y10.4%
EPS Next 5Y10.6%
Revenue Next Year0.15%
Revenue Next 2Y1.7%
Revenue Next 3Y1.96%
Revenue Next 5Y2.79%
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
Based on the Price/Earnings ratio of 10.58, the valuation of MHK can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MHK is on the same level as its industry peers.
MHK is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.59, which indicates a very decent valuation of MHK.
MHK's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.08. MHK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MHK is valued a bit cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MHK is valued a bit cheaper than 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.45 | ||
| EV/EBITDA | 5.57 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.88%
EPS Next 3Y10.4%
5. Dividend
5.1 Amount
MHK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
102.69
+1.77 (+1.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners81.08%
Inst Owner Change-0.01%
Ins Owners3.65%
Ins Owner Change8.73%
Market Cap6.42B
Analysts76.36
Price Target146.07 (42.24%)
Short Float %2.61%
Short Ratio1.72
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)1
Avg EPS beat(2)1.81%
Min EPS beat(2)-0.6%
Max EPS beat(2)4.23%
EPS beat(4)3
Avg EPS beat(4)5.33%
Min EPS beat(4)-0.6%
Max EPS beat(4)9.78%
EPS beat(8)7
Avg EPS beat(8)8.01%
EPS beat(12)9
Avg EPS beat(12)7.72%
EPS beat(16)13
Avg EPS beat(16)8.75%
Revenue beat(2)1
Avg Revenue beat(2)1.32%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)2.94%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)2.94%
Revenue beat(8)4
Avg Revenue beat(8)0.26%
Revenue beat(12)5
Avg Revenue beat(12)-0.13%
Revenue beat(16)8
Avg Revenue beat(16)0.19%
PT rev (1m)-0.09%
PT rev (3m)-7.93%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-26.76%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-12.88%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 10.59 | ||
| P/S | 0.59 | ||
| P/FCF | 9.45 | ||
| P/OCF | 5.66 | ||
| P/B | 0.85 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 5.57 |
EPS(TTM)9.71
EY9.46%
EPS(NY)9.7
Fwd EY9.44%
FCF(TTM)10.87
FCFY10.58%
OCF(TTM)18.14
OCFY17.66%
SpS173.33
BVpS120.78
TBVpS90.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 6.85% | ||
| ROCE | 7.89% | ||
| ROIC | 6.32% | ||
| ROICexc | 6.77% | ||
| ROICexgc | 8.48% | ||
| OM | 7.36% | ||
| PM (TTM) | 4.78% | ||
| GM | 25.54% | ||
| FCFM | 6.27% |
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-Score8
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 71.19% | ||
| Cap/Sales | 4.19% | ||
| Interest Coverage | 11.64 | ||
| Cash Conversion | 79% | ||
| Profit Quality | 131.28% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.86 |
F-Score8
WACC7.87%
ROIC/WACC0.8
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)5.66%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-0.51%
EPS Next Y-0.14%
EPS Next 2Y9.88%
EPS Next 3Y10.4%
EPS Next 5Y10.6%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%0.95%
Revenue Next Year0.15%
Revenue Next 2Y1.7%
Revenue Next 3Y1.96%
Revenue Next 5Y2.79%
EBIT growth 1Y10.47%
EBIT growth 3Y-15.95%
EBIT growth 5Y-2.76%
EBIT Next Year72.63%
EBIT Next 3Y25.03%
EBIT Next 5Y18.15%
FCF growth 1Y-5.14%
FCF growth 3Y2.39%
FCF growth 5Y-4.89%
OCF growth 1Y-14.69%
OCF growth 3Y-4.68%
OCF growth 5Y-4.38%