Mohawk (MHK) AI Stock Analysis

• Market Cap: $6.47B
• Dividend Yield: N/A
• Average Volume (3M): 839.03K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.01
• Revenue Growth: -0.82%
• EPS Growth: -23.99%
• Country: US
• Employees: 41,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 2.67
• Shares Outstanding: 61,821,360
• 10 Day Avg. Volume: 826,852
• 30 Day Avg. Volume: 839,032
• PEG Ratio: -0.07
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 11.10
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 3.82
• Enterprise Value/Ebitda: 8.39
• 1Y Price Target: $135.00
• Price Target Upside: 29.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 8.94
• Revenue Forecast (FY): $10.76B

• Rating: 61 Neutral
• Price Target: $113.00 ▲(8.02% Upside)

Mohawk's overall stock score reflects a company in recovery, with strong cash flow and effective leverage management. However, bearish technical indicators and ongoing economic challenges weigh on the score. The moderate valuation and cautious earnings outlook further contribute to a balanced yet cautious assessment.

Positive Factors

Cash Generation

Strong cash generation indicates robust operational efficiency, providing financial flexibility for investments and debt management.

Restructuring Savings

Restructuring efforts enhance cost efficiency, improving margins and competitiveness, which supports long-term profitability.

European Market Potential

Potential growth in European markets due to economic recovery can drive sales, enhancing revenue diversification and market position.

Negative Factors

Economic Challenges

Weaker economic conditions can suppress demand for flooring products, impacting revenue growth and market expansion efforts.

Tariff Impact

Tariff-related cost increases can pressure margins and necessitate price adjustments, potentially affecting competitive positioning.

Decline in Flooring North America Sales

Declining sales in a key segment indicate challenges in maintaining market share and may signal broader demand issues in the region.

Mohawk Business Overview & Revenue Model

Company Description

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 wood 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 Feltex, Godfrey Hirst, Hycraft, IVC Commercial, IVC Home, Leoline, Moduleo, Pergo, Quick-Step, and Unilin and Xtratherm brands; and licenses its intellectual property to flooring manufacturers. Mohawk Industries, Inc. was incorporated in 1988 and is headquartered in Calhoun, Georgia.

How the Company Makes Money

Mohawk generates revenue primarily through the sale of its flooring products across various segments. The company’s revenue model is based on manufacturing and distributing a wide array of flooring solutions, which are sold through a network of retailers, distributors, and directly to contractors and builders. Key revenue streams include residential flooring sales, commercial flooring solutions, and sales from its ceramic tile segment. Additionally, Mohawk benefits from significant partnerships with home improvement retailers and large construction firms, which enhance its market reach. The company's commitment to innovation, sustainability, and expanding its product offerings also contributes to its earnings by attracting a broader customer base and responding to market trends.

Mohawk Financial Statement Overview

Summary

Mohawk's financial statements reflect a company in recovery mode, with improving margins and revenue growth. The balance sheet shows effective leverage management, and the cash flow statement highlights strong cash generation. However, profitability and operational efficiency still need improvement to reach industry benchmarks.

Income Statement

Mohawk's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 24% and a net profit margin of 3.93%, which are relatively stable compared to previous years. However, the revenue growth rate of 36.3% in TTM is a positive sign, indicating a strong recovery from the previous year's decline. The EBIT and EBITDA margins have improved from negative figures in 2023 to positive in TTM, reflecting better operational efficiency. Despite these improvements, the margins are still below industry averages, suggesting room for further enhancement.

Balance Sheet

The balance sheet of Mohawk is relatively strong, with a debt-to-equity ratio of 0.28 in TTM, showing a decrease from previous years, indicating improved leverage management. The return on equity (ROE) is 5.26% in TTM, which is a recovery from negative ROE in 2023, but still below the industry average. The equity ratio remains stable, suggesting a solid capital structure. Overall, the balance sheet reflects a stable financial position with manageable debt levels.

Cash Flow

Mohawk's cash flow statement is robust, with a significant free cash flow growth rate of 54.07% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 0.37 and free cash flow to net income ratio of 1.01 in TTM suggest efficient cash conversion. These metrics highlight the company's ability to generate cash and cover its net income, providing a cushion for future investments and debt repayments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.72B	10.84B	11.14B	11.74B	11.20B	9.55B
Gross Profit	2.57B	2.69B	2.71B	2.94B	3.27B	2.43B
EBITDA	1.17B	1.33B	353.30M	831.30M	1.94B	1.24B
Net Income	421.10M	517.70M	-439.52M	25.25M	1.03B	515.60M
Balance Sheet
Total Assets	13.62B	12.78B	13.56B	14.12B	14.22B	14.33B
Cash, Cash Equivalents and Short-Term Investments	516.20M	666.60M	642.60M	667.62M	591.89M	1.34B
Total Debt	2.34B	2.63B	3.15B	3.22B	2.73B	3.07B
Total Liabilities	5.28B	5.22B	5.93B	6.10B	5.80B	5.79B
Stockholders Equity	8.34B	7.55B	7.62B	8.01B	8.42B	8.53B
Cash Flow
Free Cash Flow	587.20M	679.50M	710.71M	88.41M	633.00M	1.34B
Operating Cash Flow	993.60M	1.13B	1.32B	669.15M	1.31B	1.77B
Investing Cash Flow	-406.40M	-454.40M	-970.34M	-625.34M	-556.75M	-954.80M
Financing Cash Flow	-510.30M	-629.50M	-205.09M	194.35M	-1.23B	-188.19M

Mohawk Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHK, the sentiment is Negative. The current price of 104.61 is below the 20-day moving average (MA) of 111.79, below the 50-day MA of 121.72, and below the 200-day MA of 115.33, indicating a bearish trend. The MACD of -5.04 indicates Positive momentum. The RSI at 28.19 is Positive, neither overbought nor oversold. The STOCH value of 14.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MHK.

Mohawk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TILE	66 Neutral	$1.50B	13.25	20.20%	0.19%	5.11%	34.02%
PATK	65 Neutral	$3.28B	27.95	10.49%	1.63%	6.08%	-22.18%
LEG	62 Neutral	$1.21B	5.55	26.20%	2.29%	-6.03%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MHK	61 Neutral	$6.47B	15.58	5.20%	―	-0.82%	-23.99%
MLKN	54 Neutral	$954.41M	―	-1.18%	4.39%	5.37%	-127.27%
WHR	44 Neutral	$3.93B	―	-6.68%	8.78%	-11.36%	-133.01%

Mohawk Corporate Events

Mohawk Announces CFO Transition with Nicholas Manthey

On November 5, 2025, Mohawk Industries announced that James F. Brunk will retire as Chief Financial Officer effective April 1, 2026, transitioning to a senior advisory role to ensure a smooth handover. Nicholas P. Manthey, who has been with the company since 2020, will succeed him as CFO. This leadership change is expected to support Mohawk’s continued growth and strengthen its financial operations, as Mr. Manthey brings extensive experience from his previous roles at Bridgestone and Intel.

The most recent analyst rating on (MHK) stock is a Hold with a $122.00 price target. To see the full list of analyst forecasts on Mohawk stock, see the MHK Stock Forecast page.

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Mohawk Industries, Inc. Earnings Call: Balancing Achievements with Market Challenges