MOHAWK INDUSTRIES INC (MHK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MHK - US6081901042 - Common Stock
111.7 USD
+5.14 (+4.82%)
112.1 USD
+0.4 (+0.36%)
Taking everything into account, MHK scores 4 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MHK had positive earnings in the past year.
MHK had a positive operating cash flow in the past year.
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.
The Return On Equity of MHK (5.05%) is comparable to the rest of the industry.
MHK has a Return On Invested Capital (4.97%) which is in line with its industry peers.
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 of 3.93%. This is comparable to the rest of the industry: MHK outperforms 47.54% of its industry peers.
MHK's Profit Margin has declined in the last couple of years.
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.
With a Gross Margin value of 25.11%, MHK perfoms like the industry average, outperforming 50.82% of the companies in the same industry.
MHK's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MHK is destroying value.
Compared to 1 year ago, MHK has less shares outstanding
The number of shares outstanding for MHK has been reduced compared to 5 years ago.
MHK has a better debt/assets ratio than last year.
2.2 Solvency
MHK has an Altman-Z score of 2.81. This is not the best score and indicates that MHK is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of MHK (2.81) 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'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 better Debt to Equity ratio (0.21) than 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.6
WACC8.32%
2.3 Liquidity
A Current Ratio of 2.25 indicates that MHK has no problem at all paying its short term obligations.
With a Current ratio value of 2.25, MHK perfoms like the industry average, outperforming 42.62% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that MHK should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.24, MHK is doing good in the industry, outperforming 60.66% of the companies in the same industry.
| 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.
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
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.
The Revenue is expected to grow by 2.35% on average over the next years.
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.
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
The Price/Earnings ratio is 12.54, which indicates a correct valuation of MHK.
MHK's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MHK to the average of the S&P500 Index (26.59), we can say MHK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.00, the valuation of MHK can be described as reasonable.
Based on the Price/Forward Earnings ratio, MHK is valued a bit cheaper than the industry average as 68.85% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MHK to the average of the S&P500 Index (23.80), we can say MHK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 11 |
4.2 Price Multiples
83.61% of the companies in the same industry are more expensive than MHK, based on the Enterprise Value to EBITDA ratio.
77.05% of the companies in the same industry are more expensive than MHK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.82 | ||
| EV/EBITDA | 6.36 |
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 |
111.7
+5.14 (+4.82%)
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 Cap6.94B
Revenue(TTM)10.72B
Net Income(TTM)421.10M
Analysts75.65
Price Target141.68 (26.84%)
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 | 12.54 | ||
| Fwd PE | 11 | ||
| P/S | 0.65 | ||
| P/FCF | 11.82 | ||
| P/OCF | 6.98 | ||
| P/B | 0.83 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 6.36 |
EPS(TTM)8.91
EY7.98%
EPS(NY)10.16
Fwd EY9.09%
FCF(TTM)9.45
FCFY8.46%
OCF(TTM)15.99
OCFY14.32%
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 | 2.81 |
F-Score6
WACC8.32%
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 12.54 and the Price/Book (PB) ratio is 0.83.