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 in the United States, Europe, Russia, and internationally.


Snowflake Analysis

Very undervalued with flawless balance sheet.


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

Stable Share Price: MHK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-20.5%

MHK

-13.8%

US Consumer Durables

-2.0%

US Market


1 Year Return

-52.9%

MHK

-33.2%

US Consumer Durables

-15.1%

US Market

Return vs Industry: MHK underperformed the US Consumer Durables industry which returned -33.2% over the past year.

Return vs Market: MHK underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

MHKIndustryMarket
7 Day-20.5%-13.8%-2.0%
30 Day-48.2%-42.6%-19.7%
90 Day-52.6%-42.5%-23.2%
1 Year-52.9%-52.9%-32.3%-33.2%-13.4%-15.1%
3 Year-72.8%-72.8%-31.1%-34.2%10.9%3.7%
5 Year-66.3%-66.3%-27.3%-32.1%28.4%14.4%

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 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 ($62.01) is trading below our estimate of fair value ($230.5)

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


Price To Earnings Ratio

PE vs Industry: MHK is good value based on its PE Ratio (6x) compared to the Consumer Durables industry average (6.4x).

PE vs Market: MHK is good value based on its PE Ratio (6x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: MHK is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: MHK is good value based on its PB Ratio (0.5x) compared to the US Consumer Durables industry average (0.7x).


Next Steps

Future Growth

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

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MHK's forecast earnings growth (6.6% per year) is above the savings rate (1.7%).

Earnings vs Market: MHK's earnings (6.6% per year) are forecast to grow slower than the US market (13.4% per year).

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

Revenue vs Market: MHK's revenue (1.2% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: MHK's revenue (1.2% 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 (8%).


Next Steps

Past Performance

How has Mohawk Industries performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MHK has high quality earnings.

Growing Profit Margin: MHK's current net profit margins (7.5%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: MHK's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: MHK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MHK had negative earnings growth (-13.2%) over the past year, making it difficult to compare to the Consumer Durables industry average (10%).


Return on Equity

High ROE: MHK's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Mohawk Industries's financial position?


Financial Position Analysis

Short Term Liabilities: MHK's short term assets ($4.4B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: MHK's short term assets ($4.4B) exceed its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: MHK's debt to equity ratio (31.3%) is considered satisfactory.

Reducing Debt: MHK's debt to equity ratio has reduced from 51% to 31.3% over the past 5 years.

Debt Coverage: MHK's debt is well covered by operating cash flow (55.9%).

Interest Coverage: MHK's interest payments on its debt are well covered by EBIT (22.6x coverage).


Balance Sheet

Inventory Level: MHK has a high level of physical assets or inventory.

Debt Coverage by Assets: MHK's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

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 payouts.

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

Management

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

10.0yrs

Average management tenure


CEO

Jeff Lorberbaum (64yo)

19.25s

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

Compensation vs Market: Jeff's total compensation ($USD4.63M) is about average for companies of similar size in the US market ($USD5.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Lorberbaum
Chairman & CEO19.25yrsUS$4.63m0.89% $39.6m
William Wellborn
President18.08yrsUS$4.00m0.19% $8.3m
Bernard Thiers
President of Unilin - Flooring Rest of World11.25yrsUS$2.54m0.25% $11.2m
Paul De Cock
President of Flooring North America Segment1.42yrsUS$6.31m0.039% $1.7m
Frank Boykin
Senior Consultant1yrUS$2.11m0.015% $652.9k
Glenn Landau
Executive VP & CFO1yrno data0.022% $996.4k
James Brunk
Senior VP10.92yrsno data0.0092% $409.8k
Kenneth Huelskamp
Vice President of Investor Relationsno datano datano data
Rodney Patton
VP of Business Strategy6.75yrsno data0.017% $756.0k
Shailesh Bettadapur
VP & Treasurer10yrsno datano data

10.0yrs

Average Tenure

63yo

Average Age

Experienced Management: MHK's management team is seasoned and experienced (10 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Lorberbaum
Chairman & CEO19.25yrsUS$4.63m0.89% $39.6m
William Wellborn
President18.08yrsUS$4.00m0.19% $8.3m
Bruce Bruckmann
Independent Director27.5yrsUS$179.70k0.40% $17.8m
Richard Ill
Independent Director8.92yrsUS$169.70k0.010% $455.1k
William Runge
Independent Director5.75yrsUS$169.70k0.0044% $193.8k
John Engquist
Director0.17yrno datano data
Joseph Onorato
Independent Director12.17yrsUS$184.70k0.021% $940.0k
Filiep Balcaen
Independent Director4.17yrsUS$169.70k3.18% $141.1m
Karen Smith Bogart
Independent Director8.92yrsUS$179.70k0.010% $455.1k

8.9yrs

Average Tenure

65yo

Average Age

Experienced Board: MHK's board of directors are considered experienced (8.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MHK 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.


Top Shareholders

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$4.444b
  • Shares outstanding: 71.67m
  • 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
M1HK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

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. This segment markets and distributes its products under the American Olean, Daltile, Eliane, EmilGroup, KAI, Kerama Marazzi, Marazzi, and Ragno brands. The Flooring NA segment offers floor covering product lines in a range of colors, textures, and patterns, including carpets, carpet tiles, rugs and mats, carpet pads, hardwood, laminate, medium-density fiberboards, luxury vinyl tiles (LVT), and sheet vinyl products. This segment markets and distributes its flooring products under the Aladdin Commercial, Durkan, IVC, Karastan, Mohawk, Mohawk Group, Mohawk Home, Pergo, Portico, and Quick-Step brands. The Flooring ROW segment provides hardwood flooring and vinyl flooring, as well as laminates, roofing elements, sheet vinyl, LVT, insulation boards, medium-density fiberboards, chipboards, and other woods products under the Balterio, Feltex, Godfrey Hirst, Hycraft, IVC, Leoline, Moduleo, Pergo, Quick-Step, and Unilin and Xtratherm brands; and licenses its intellectual property to flooring manufacturers. The company sells its products through independent distributors, home centers, company-operated service centers and stores, floor covering retailers, ceramic specialists, commercial contractors, commercial end users, mass merchandisers, department stores, e-commerce retailers, shop at home, buying groups, retailers, and wholesalers, as well as private labeling programs. Mohawk Industries, Inc. was founded in 1988 and is headquartered in Calhoun, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 00:53
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.