Mohawk Industries
Market Cap
US$6.6b
Last Updated
2020/10/30 03:21 UTC
Data Sources
Company Financials +
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and undervalued.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-11.1%
MHK
-6.6%
US Consumer Durables
-4.1%
US Market
1 Year Return
-34.9%
MHK
8.7%
US Consumer Durables
12.0%
US Market
Return vs Industry: MHK underperformed the US Consumer Durables industry which returned 8.7% over the past year.
Return vs Market: MHK underperformed the US Market which returned 12% over the past year.
Shareholder returns
| MHK | Industry | Market | |
|---|---|---|---|
| 7 Day | -11.1% | -6.6% | -4.1% |
| 30 Day | -4.7% | -5.7% | -0.2% |
| 90 Day | 16.5% | 3.6% | 2.8% |
| 1 Year | -34.9%-34.9% | 10.1%8.7% | 14.6%12.0% |
| 3 Year | -63.8%-63.8% | 15.2%10.8% | 35.8%26.8% |
| 5 Year | -50.3%-50.3% | 39.5%30.7% | 75.2%55.6% |
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
2 months ago | Simply Wall St
Have Mohawk Industries, Inc. (NYSE:MHK) Insiders Been Selling Their Stock?2 months ago | Simply Wall St
Mohawk Industries, Inc. (NYSE:MHK) Doing What It Can To Lift Shares2 months ago | Simply Wall St
Should You Use Mohawk Industries's (NYSE:MHK) Statutory Earnings To Analyse It?Valuation
Is Mohawk Industries undervalued compared to its fair value and its price relative to the market?
43.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MHK ($93.05) is trading below our estimate of fair value ($165.51)
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 (13.8x) compared to the US Consumer Durables industry average (13x).
PE vs Market: MHK is good value based on its PE Ratio (13.8x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: MHK is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: MHK is good value based on its PB Ratio (0.8x) compared to the US Consumer Durables industry average (1.5x).
Next Steps
Future Growth
How is Mohawk Industries forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
23.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MHK's forecast earnings growth (23.4% per year) is above the savings rate (2.2%).
Earnings vs Market: MHK's earnings (23.4% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MHK's revenue (4.4% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: MHK's revenue (4.4% 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 (6%).
Next Steps
Past Performance
How has Mohawk Industries performed over the past 5 years?
0.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MHK has a large one-off loss of $200.2M impacting its June 27 2020 financial results.
Growing Profit Margin: MHK's current net profit margins (5.2%) are lower than last year (7.8%).
Past Earnings Growth Analysis
Earnings Trend: MHK's earnings have grown by 0.2% 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 (-37.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (20%).
Return on Equity
High ROE: MHK's Return on Equity (6.1%) 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 ($4.7B) exceed its short term liabilities ($1.9B).
Long Term Liabilities: MHK's short term assets ($4.7B) exceed its long term liabilities ($3.6B).
Debt to Equity History and Analysis
Debt Level: MHK's debt to equity ratio (33.8%) is considered satisfactory.
Reducing Debt: MHK's debt to equity ratio has reduced from 74.1% to 33.8% over the past 5 years.
Debt Coverage: MHK's debt is well covered by operating cash flow (60.4%).
Interest Coverage: MHK's interest payments on its debt are well covered by EBIT (14.8x coverage).
Balance Sheet
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 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
Management
How experienced are the management team and are they aligned to shareholders interests?
10.7yrs
Average management tenure
CEO
Jeff Lorberbaum (65 yo)
19.75yrs
Tenure
US$3,126,417
Compensation
Mr. Jeffrey S. Lorberbaum, also known as Jeff, has been the Chief Executive Officer of Mohawk Industries, Inc. since January 1, 2001. Mr. Lorberbaum is a co-owner of Helm Management Corporation and Cuddy H ...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD3.13M) is below average for companies of similar size in the US market ($USD7.41M).
Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 19.75yrs | US$3.13m | 13.57% $ 898.9m | |
| President | 18.58yrs | US$2.70m | 0.16% $ 10.7m | |
| Chief Financial Officer | 0.50yr | US$1.93m | 0.025% $ 1.7m | |
| President of Unilin - Flooring Rest of World | 11.75yrs | US$2.09m | 0.24% $ 15.6m | |
| President of Flooring North America Segment | 1.92yrs | US$2.65m | 0.030% $ 2.0m | |
| Senior VP | 11.42yrs | no data | 0.0093% $ 615.4k | |
| Vice President of Investor Relations | no data | no data | no data | |
| VP of Business Strategy | 7.25yrs | no data | 0.017% $ 1.1m | |
| VP & Treasurer | 10.5yrs | no data | no data |
10.7yrs
Average Tenure
64yo
Average Age
Experienced Management: MHK's management team is seasoned and experienced (10.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 19.75yrs | US$3.13m | 13.57% $ 898.9m | |
| President | 18.58yrs | US$2.70m | 0.16% $ 10.7m | |
| Independent Director | 28yrs | US$178.12k | 0.41% $ 26.8m | |
| Independent Director | 6.25yrs | US$168.12k | 0.0071% $ 468.4k | |
| Independent Director | 0.58yr | no data | no data | |
| Independent Director | 12.58yrs | US$183.12k | 0.023% $ 1.5m | |
| Independent Director | 4.58yrs | US$168.12k | 1.57% $ 103.9m | |
| Independent Director | 9.42yrs | US$178.12k | 0.013% $ 879.1k |
11.0yrs
Average Tenure
65.5yo
Average Age
Experienced Board: MHK's board of directors are seasoned and experienced ( 11 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MHK insiders have only sold shares 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$6.625b
- Shares outstanding: 71.20m
- Website: https://www.mohawkind.com
Number of Employees
Location
- Mohawk Industries, Inc.
- 160 South Industrial Boulevard
- Calhoun
- Georgia
- 30701
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MHK | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 1992 |
| MWK | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 1992 |
| 0K2F | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Apr 1992 |
| MHK * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Apr 1992 |
| M1HK34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 COM | BR | BRL | Jan 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, Ru ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/30 03:21 |
| End of Day Share Price | 2020/10/29 00:00 |
| Earnings | 2020/06/27 |
| Annual Earnings | 2019/12/31 |
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.