NYSE:MHK

Stock Analysis Report

Executive Summary

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for remodeling and new constructions of residential and commercial spaces worldwide.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.

Risks

  • Mohawk Industries has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Mohawk Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

NYSE:MHK

1.0%

US Consumer Durables

1.1%

US Market


1 Year Return

-34.5%

NYSE:MHK

14.6%

US Consumer Durables

2.1%

US Market

MHK underperformed the Consumer Durables industry which returned 14% over the past year.

MHK underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

MHKIndustryMarket
7 Day1.0%1.0%1.1%
30 Day10.0%4.8%3.7%
90 Day-18.7%4.8%2.3%
1 Year-34.5%-34.5%16.1%14.6%4.4%2.1%
3 Year-40.7%-40.7%44.1%39.8%47.0%37.4%
5 Year-11.0%-11.0%36.1%27.4%61.6%43.8%

Price Volatility Vs. Market

How volatile is Mohawk Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mohawk Industries undervalued based on future cash flows and its price relative to the stock market?

43%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Mohawk Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).

Mohawk Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Mohawk Industries is good value based on earnings compared to the US Consumer Durables industry average.

Mohawk Industries is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Mohawk Industries is poor value based on expected growth next year.


Price Based on Value of Assets

Mohawk Industries is good value based on assets compared to the US Consumer Durables industry average.


Next Steps

Future Growth

How is Mohawk Industries expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Mohawk Industries's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Mohawk Industries's earnings are expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).

Mohawk Industries's revenue growth is positive but not above the United States of America market average.

Mohawk Industries's earnings growth is positive but not above the United States of America market average.

Mohawk Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Mohawk Industries will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Mohawk Industries performed over the past 5 years?

12.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Mohawk Industries's year on year earnings growth rate has been positive over the past 5 years.

Mohawk Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Mohawk Industries's 1-year earnings growth is negative, it can't be compared to the US Consumer Durables industry average.


Return on Equity

Mohawk Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Mohawk Industries used its assets less efficiently than the US Consumer Durables industry average last year based on Return on Assets.


Return on Capital Employed

Mohawk Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Mohawk Industries's financial position?


Financial Position Analysis

Mohawk Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Mohawk Industries's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Mohawk Industries's level of debt (39.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (51.9% vs 39.1% today).

Debt is well covered by operating cash flow (36.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 23.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Mohawk Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Mohawk Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Mohawk Industries has not reported any payouts.

Unable to verify if Mohawk Industries's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Mohawk Industries has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Mohawk Industries's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Mohawk Industries's salary, the management and board of directors tenure and is there insider trading?

9.4yrs

Average management tenure


CEO

Jeff Lorberbaum (64yo)

18.7yrs

Tenure

US$4,631,485

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

Jeff's remuneration is lower than average for companies of similar size in United States of America.

Jeff's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.4yrs

Average Tenure

63yo

Average Age

The average tenure for the Mohawk Industries management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.0yrs

Average Tenure

65yo

Average Age

The tenure for the Mohawk Industries board of directors is about average.


Insider Trading

More shares have been bought than sold by Mohawk Industries individual insiders in the past 3 months.


Recent Insider Transactions

SellUS$101,14913 Sep 19
Paul De Cock
EntityIndividual
Role
Unit President
President of Flooring North America Segment
Shares800
Max PriceUS$126.44
BuyUS$1,374,70120 Aug 19
Floorenter NV
EntityCompany
Shares12,500
Max PriceUS$109.98
BuyUS$235,37507 Aug 19
Bruce Bruckmann
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$118.38
SellUS$419,58014 Jun 19
Bernard Thiers
EntityIndividual
Role
Unit President
President of Unilin - Flooring Rest of World
Shares2,800
Max PriceUS$149.85
SellUS$621,77213 Jun 19
Slh Fund, L.P.
EntityCompany
Shares4,200
Max PriceUS$148.04
SellUS$870,00005 Jun 19
Jeffrey Lorberbaum
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares6,000
Max PriceUS$145.00
SellUS$2,569,63630 May 19
Jeffrey Lorberbaum
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares18,000
Max PriceUS$143.68
SellUS$301,71014 Mar 19
Rodney Patton
EntityIndividual
Role
Chief Legal Officer
VP of Business Strategy
Shares2,260
Max PriceUS$133.50
SellUS$2,000,70113 Feb 19
Slh Fund, L.P.
EntityCompany
Shares14,247
Max PriceUS$143.00
BuyUS$987,81728 Dec 18
Floorenter NV
EntityCompany
Shares9,000
Max PriceUS$109.76
BuyUS$2,933,96318 Dec 18
Floorenter NV
EntityCompany
Shares24,937
Max PriceUS$117.66
BuyUS$117,75017 Dec 18
Bruce Bruckmann
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$118.50
BuyUS$6,245,36214 Dec 18
Floorenter NV
EntityCompany
Shares52,546
Max PriceUS$119.35
BuyUS$59,50013 Dec 18
Bruce Bruckmann
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$119.00
BuyUS$5,181,67012 Dec 18
Floorenter NV
EntityCompany
Shares43,400
Max PriceUS$119.50
BuyUS$2,736,11310 Dec 18
Floorenter NV
EntityCompany
Shares22,900
Max PriceUS$119.92
BuyUS$9,723,42406 Dec 18
Floorenter NV
EntityCompany
Shares78,200
Max PriceUS$125.92
SellUS$95,58304 Dec 18
Rodney Patton
EntityIndividual
Role
Chief Legal Officer
VP of Business Strategy
Shares763
Max PriceUS$127.92
BuyUS$1,274,76503 Dec 18
Floorenter NV
EntityCompany
Shares10,000
Max PriceUS$127.48
SellUS$1,371,00928 Nov 18
Slh Fund, L.P.
EntityCompany
Shares10,642
Max PriceUS$128.83
BuyUS$29,603,82501 Nov 18
Floorenter NV
EntityCompany
Shares250,000
Max PriceUS$118.42
BuyUS$313,87730 Oct 18
Brian Carson
EntityIndividual
Shares2,698
Max PriceUS$116.50

Ownership Breakdown


Management Team

  • Jeff Lorberbaum (64yo)

    Chairman & CEO

    • Tenure: 18.7yrs
    • Compensation: US$4.63m
  • Chris Wellborn (63yo)

    President

    • Tenure: 17.5yrs
    • Compensation: US$4.00m
  • Dave Patton (48yo)

    VP of Business Strategy

    • Tenure: 6.2yrs
  • Frank Boykin (64yo)

    Senior Consultant

    • Tenure: 0.4yrs
    • Compensation: US$2.11m
  • Bernard Thiers (63yo)

    President of Unilin - Flooring Rest of World

    • Tenure: 10.7yrs
    • Compensation: US$2.54m
  • James Brunk (54yo)

    Chief Accounting Officer

    • Tenure: 10.3yrs
  • Glenn Landau (50yo)

    Executive VP & CFO

    • Tenure: 0.4yrs
  • Shailesh Bettadapur

    VP & Treasurer

    • Tenure: 9.4yrs
  • Paul De Cock

    President of Flooring North America Segment

    • Tenure: 0.8yrs
    • Compensation: US$6.31m
  • Kenneth Huelskamp

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bruce Bruckmann (66yo)

    Director

    • Tenure: 26.9yrs
    • Compensation: US$179.70k
  • Jeff Lorberbaum (64yo)

    Chairman & CEO

    • Tenure: 18.7yrs
    • Compensation: US$4.63m
  • Rick Ill (76yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$169.70k
  • Chris Wellborn (63yo)

    President

    • Tenure: 17.5yrs
    • Compensation: US$4.00m
  • William Runge (67yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$169.70k
  • Joseph Onorato (70yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: US$184.70k
  • Filip Balcaen (59yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$169.70k
  • Pilkington Smith Bogart (62yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$179.70k

Company Information

Mohawk Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mohawk Industries, Inc.
  • Ticker: MHK
  • Exchange: NYSE
  • Founded: 1988
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$8.835b
  • Shares outstanding: 72.15m
  • Website: https://www.mohawkind.com

Number of Employees


Location

  • Mohawk Industries, Inc.
  • 160 South Industrial Boulevard
  • Calhoun
  • Georgia
  • 30701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MHKNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1992
MWKDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1992
0K2FLSE (London Stock Exchange)YesCommon StockGBUSDApr 1992

Biography

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for remodeling and new constructions of residential and commercial spaces worldwide. It operates through t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:38
End of Day Share Price2019/09/16 00:00
Earnings2019/06/29
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.