MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - NYSE:MHK - US6081901042 - Common Stock
106.88 USD
-3.61 (-3.27%)
106.88 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MHK. MHK was compared to 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 has a decent growth rate and is not valued too expensively.
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.
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
The Return On Assets of MHK (3.44%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.72%, MHK is in line with its industry, outperforming 40.98% of the companies in the same industry.
The Return On Invested Capital of MHK (5.33%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for MHK is below the industry average of 10.21%.
| 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's Profit Margin of 4.44% is in line compared to the rest of the industry. MHK outperforms 54.10% of its industry peers.
In the last couple of years the Profit Margin of MHK has declined.
With a Operating Margin value of 6.80%, MHK perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MHK is destroying value.
The number of shares outstanding for MHK has been reduced compared to 1 year ago.
Compared to 5 years ago, MHK has less shares outstanding
MHK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.74 indicates that MHK is not a great score, but indicates only limited risk for bankruptcy at the moment.
MHK has a Altman-Z score (2.74) which is comparable to the rest of the 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.
With a decent Debt to FCF ratio value of 4.57, MHK is doing good in the industry, outperforming 60.66% of the companies in the same industry.
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 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.64
WACC8.35%
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 of 2.13. This is comparable to the rest of the industry: MHK outperforms 40.98% of its industry peers.
A Quick Ratio of 1.18 indicates that MHK should not have too much problems paying its short term obligations.
The Quick ratio of MHK (1.18) is better than 60.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The earnings per share for MHK have decreased by -8.33% in the last year.
Measured over the past years, MHK shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.63% on average per year.
MHK shows a decrease in Revenue. In the last year, the revenue decreased by -0.82%.
Measured over the past years, MHK shows a small growth in Revenue. The Revenue has been growing by 1.68% on average per year.
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
Based on estimates for the next years, MHK will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.35% on average per year.
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-5.75%
EPS Next 2Y4.8%
EPS Next 3Y8.1%
EPS Next 5Y10.35%
Revenue Next Year-0.12%
Revenue Next 2Y1.27%
Revenue Next 3Y1.75%
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
A Price/Earnings ratio of 12.00 indicates a reasonable valuation of MHK.
MHK's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.67. MHK is valued rather cheaply when compared to this.
MHK is valuated reasonably with a Price/Forward Earnings ratio of 10.02.
65.57% of the companies in the same industry are more expensive than MHK, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 31.86. MHK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 10.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MHK indicates a somewhat cheap valuation: MHK is cheaper than 73.77% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MHK indicates a somewhat cheap valuation: MHK is cheaper than 67.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.8 | ||
| EV/EBITDA | 6.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.8%
EPS Next 3Y8.1%
5. Dividend
5.1 Amount
MHK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
106.88
-3.61 (-3.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners84.93%
Inst Owner Change1.75%
Ins Owners3.58%
Ins Owner Change-1.07%
Market Cap6.64B
Revenue(TTM)10.72B
Net Income(TTM)474.30M
Analysts74.78
Price Target142.26 (33.1%)
Short Float %3.58%
Short Ratio2.45
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)2.39%
PT rev (3m)9.7%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.13%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-0.64%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 10.02 | ||
| P/S | 0.62 | ||
| P/FCF | 13.8 | ||
| P/OCF | 7.17 | ||
| P/B | 0.8 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 6.33 |
EPS(TTM)8.91
EY8.34%
EPS(NY)10.66
Fwd EY9.98%
FCF(TTM)7.74
FCFY7.24%
OCF(TTM)14.91
OCFY13.95%
SpS171.96
BVpS133.46
TBVpS100.56
PEG (NY)N/A
PEG (5Y)N/A
Graham Number163.57
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%
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-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 | 2.74 |
F-Score7
WACC8.35%
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)-8.33%
EPS 3Y-13.18%
EPS 5Y-0.63%
EPS Q2Q%-7.93%
EPS Next Y-5.75%
EPS Next 2Y4.8%
EPS Next 3Y8.1%
EPS Next 5Y10.35%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y-1.1%
Revenue growth 5Y1.68%
Sales Q2Q%1.43%
Revenue Next Year-0.12%
Revenue Next 2Y1.27%
Revenue Next 3Y1.75%
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 3Y23.43%
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%
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 and the Price/Book (PB) ratio is 0.8.