Mohawk Industries, Inc. Fundamental Analysis (NYSE: MHK)
Mohawk Industries, Inc. Fundamental Analysis (NYSE: MHK)
Mohawk Industries, Inc. (NYSE: MHK) shows weak financial fundamentals with a PE ratio of 17.67, profit margin of 4.15%, and ROE of 5.52%. The company generates $11.2B in annual revenue with weak year-over-year growth of -0.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MHK's fundamental strength across five key dimensions:
Efficiency Score
WeakMHK struggles to generate sufficient returns from assets.
Valuation Score
ModerateMHK shows balanced valuation metrics.
Growth Score
WeakMHK faces weak or negative growth trends.
Financial Health Score
ExcellentMHK maintains a strong and stable balance sheet.
Profitability Score
WeakMHK struggles to sustain strong margins.
Key Financial Metrics
Is MHK Expensive or Cheap?
P/E Ratio
MHK trades at 17.67 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MHK's PEG of 66.72 indicates potential overvaluation.
Price to Book
The market values Mohawk Industries, Inc. at 0.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.29 times EBITDA. This is generally considered low.
How Well Does MHK Make Money?
Net Profit Margin
For every $100 in sales, Mohawk Industries, Inc. keeps $4.15 as profit after all expenses.
Operating Margin
Core operations generate 5.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.52 in profit for every $100 of shareholder equity.
ROA
Mohawk Industries, Inc. generates $3.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mohawk Industries, Inc. produces operating cash flow of $1.28B, showing steady but balanced cash generation.
Free Cash Flow
Mohawk Industries, Inc. produces free cash flow of $814.88M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $13.37 in free cash annually.
FCF Yield
MHK converts 9.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
66.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How MHK Stacks Against Its Sector Peers
| Metric | MHK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.67 | 26.74 | Better (Cheaper) |
| ROE | 5.52% | 965.00% | Weak |
| Net Margin | 4.15% | -4914.00% (disorted) | Weak |
| Debt/Equity | 0.28 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 1.92 | 2.31 | Neutral |
| ROA | 3.36% | 295.00% | Weak |
MHK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mohawk Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.48%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-17.73%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-31.56%
Industry Style: Cyclical, Growth, Discretionary
Declining