Mohawk Industries (NYSE:MHK) - Stock price, News & Analysis

MHK fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

MHK Stock Overview

Rewards

Trading at 60.8% below our estimate of its fair value

Earnings are forecast to grow 4.73% per year

Earnings grew by 105.7% over the past year

Risk Analysis

No risks detected for MHK from our risk checks.

Mohawk Industries Competitors

Leggett & Platt

NYSE:LEG

US$5.4b

Stanley Black & Decker

NYSE:SWK

US$29.7b

Masco

NYSE:MAS

US$16.0b

Forbo Holding

SWX:FORN

CHF2.9b

Price History & Performance

Summary of all time highs, changes and price drops for Mohawk Industries
Historical stock prices
Current Share Price	US$161.33
52 Week High	US$231.80
52 Week Low	US$141.64
Beta	1.5
1 Month Change	-4.22%
3 Month Change	-16.03%
1 Year Change	6.89%
3 Year Change	26.88%
5 Year Change	-25.12%
Change since IPO	2,260.93%

Recent News & Updates

Nov 17

I Ran A Stock Scan For Earnings Growth And Mohawk Industries (NYSE:MHK) Passed With Ease

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Nov 04

Mohawk Industries (NYSE:MHK) Has A Rock Solid Balance Sheet

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Oct 22

Returns On Capital Signal Tricky Times Ahead For Mohawk Industries (NYSE:MHK)

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Oct 07

Should You Think About Buying Mohawk Industries, Inc. (NYSE:MHK) Now?

Today we're going to take a look at the well-established Mohawk Industries, Inc. ( NYSE:MHK ). The company's stock...

Shareholder Returns

	MHK	US Consumer Durables	US Market
7D	-8.6%	-6.5%	-4.6%
1Y	6.9%	9.5%	7.7%

Return vs Industry: MHK underperformed the US Consumer Durables industry which returned 9.5% over the past year.

Return vs Market: MHK matched the US Market which returned 7.7% over the past year.

Price Volatility

Is MHK's price volatile compared to industry and market?
MHK volatility
MHK Average Weekly Movement	5.4%
Consumer Durables Industry Average Movement	6.5%
Market Average Movement	6.6%
10% most volatile stocks in US Market	15.7%
10% least volatile stocks in US Market	2.4%

Stable Share Price: MHK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MHK's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	42,000	Jeff Lorberbaum	https://www.mohawkind.com

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for remodeling and new constructions of residential and commercial spaces in the United States, Europe, Russia, and internationally. It operates through three segments: Global Ceramic, Flooring North America (Flooring NA), and Flooring Rest of the World (Flooring ROW). The Global Ceramic segment provides a range of ceramic tile, porcelain tile, and natural stone products; and sources, markets, and distributes other tile related products.

Mohawk Industries Fundamentals Summary

How do Mohawk Industries's earnings and revenue compare to its market cap?
MHK fundamental statistics
Market Cap	US$10.93b
Earnings (TTM)	US$1.09b
Revenue (TTM)	US$11.08b

10.0x

P/E Ratio

1.0x

P/S Ratio

Is MHK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MHK income statement (TTM)
Revenue	US$11.08b
Cost of Revenue	US$7.77b
Gross Profit	US$3.31b
Expenses	US$2.22b
Earnings	US$1.09b

Last Reported Earnings

Oct 02, 2021

Next Earnings Date

Feb 10, 2022

Earnings per share (EPS)	16.13
Gross Margin	29.85%
Net Profit Margin	9.86%
Debt/Equity Ratio	25.7%

How did MHK perform over the long term?

See historical performance and comparison

Valuation

Is Mohawk Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MHK ($161.33) is trading below our estimate of fair value ($411.48)

Significantly Below Fair Value: MHK is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: MHK is poor value based on its PE Ratio (10x) compared to the US Consumer Durables industry average (9.1x).

PE vs Market: MHK is good value based on its PE Ratio (10x) compared to the US market (16.9x).

Price to Earnings Growth Ratio

PEG Ratio: MHK is poor value based on its PEG Ratio (2.1x)

Price to Book Ratio

PB vs Industry: MHK is good value based on its PB Ratio (1.2x) compared to the US Consumer Durables industry average (1.8x).

Future Growth

How is Mohawk Industries forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

4.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MHK's forecast earnings growth (4.7% per year) is above the savings rate (2%).

Earnings vs Market: MHK's earnings (4.7% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: MHK's earnings are forecast to grow, but not significantly.

Revenue vs Market: MHK's revenue (4.1% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: MHK's revenue (4.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MHK's Return on Equity is forecast to be low in 3 years time (10.6%).

Past Performance

How has Mohawk Industries performed over the past 5 years?

-6.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MHK has high quality earnings.

Growing Profit Margin: MHK's current net profit margins (9.9%) are higher than last year (5.7%).

Past Earnings Growth Analysis

Earnings Trend: MHK's earnings have declined by 6.1% per year over the past 5 years.

Accelerating Growth: MHK's earnings growth over the past year (105.7%) exceeds its 5-year average (-6.1% per year).

Earnings vs Industry: MHK earnings growth over the past year (105.7%) exceeded the Consumer Durables industry 74.2%.

Return on Equity

High ROE: MHK's Return on Equity (12.5%) is considered low.

Financial Health

How is Mohawk Industries's financial position?

Financial Position Analysis

Short Term Liabilities: MHK's short term assets ($5.6B) exceed its short term liabilities ($2.9B).

Long Term Liabilities: MHK's short term assets ($5.6B) exceed its long term liabilities ($2.8B).

Debt to Equity History and Analysis

Debt Level: MHK's net debt to equity ratio (12.8%) is considered satisfactory.

Reducing Debt: MHK's debt to equity ratio has reduced from 47.5% to 25.7% over the past 5 years.

Debt Coverage: MHK's debt is well covered by operating cash flow (66.9%).

Interest Coverage: MHK's interest payments on its debt are well covered by EBIT (24.3x coverage).

Balance Sheet

Dividend

What is Mohawk Industries's current dividend yield, its reliability and sustainability?

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MHK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MHK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MHK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MHK's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MHK's dividend in 3 years as they are not forecast to pay a notable one for the US market.

Next Steps

Explore strong dividend paying companies in the Consumer Durables industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

10.1yrs

Average management tenure

CEO

Jeff Lorberbaum (66 yo)

21yrs

Tenure

US$3,636,376

Compensation

Mr. Jeffrey S. Lorberbaum, also known as Jeff, has been the Chief Executive Officer of Mohawk Industries, Inc. since January 1, 2001. Mr. Lorberbaum is a co-owner of Helm Management Corporation and Cuddy H...

CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD3.64M) is below average for companies of similar size in the US market ($USD11.31M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: MHK's management team is seasoned and experienced (10.1 years average tenure).

Board Members

Experienced Board: MHK's board of directors are seasoned and experienced ( 13.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/01/20 23:50
End of Day Share Price	2022/01/20 00:00
Earnings	2021/10/02
Annual Earnings	2020/12/31