Mohawk (MHK) AI Stock Analysis

• Market Cap: $8.12B
• Dividend Yield: N/A
• Average Volume (3M): 794.33K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 1.05
• Revenue Growth: -1.61%
• EPS Growth: N/A
• Country: US
• Employees: 41,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 2.77
• Shares Outstanding: 62,131,912
• 10 Day Avg. Volume: 829,602
• 30 Day Avg. Volume: 794,329
• 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: 1.07
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: 7.01
• 1Y Price Target: $133.00
• Price Target Upside: 1.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: $152.00 ▲(16.33% Upside)

Mohawk's overall stock score reflects stable financial performance and strong technical momentum, tempered by valuation concerns and external challenges noted in the earnings call. The company's strategic initiatives and strong balance sheet provide resilience, but market conditions remain challenging.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides Mohawk with financial stability and flexibility to invest in growth opportunities, enhancing its long-term resilience.

Operational Improvements

Operational improvements and cost savings initiatives enhance efficiency and profitability, positioning Mohawk to better withstand external pressures and improve margins over time.

Sustainability Initiatives

Investing in sustainability and green energy aligns with consumer trends and regulatory expectations, potentially boosting brand reputation and long-term competitiveness.

Negative Factors

Higher Input Costs

Rising input costs can erode profit margins, challenging Mohawk's ability to maintain profitability unless mitigated by pricing strategies or cost efficiencies.

Pricing Pressure

Ongoing pricing pressure in the market could limit revenue growth and margin expansion, necessitating strategic adjustments to maintain competitive positioning.

Residential Remodeling Challenges

Slow residential remodeling impacts demand for Mohawk's products, potentially hindering revenue growth in a key market segment amid broader economic uncertainties.

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 different market segments. The company's revenue model is diversified, with significant contributions coming from residential and commercial flooring sales. Key revenue streams include the sale of carpets, ceramic tiles, hardwood, laminate, and vinyl flooring, as well as related installation services. Mohawk also benefits from strategic partnerships with home improvement retailers, distributors, and contractors, which help expand its market reach. Additionally, the company invests in research and development to create innovative products that meet consumer demands, further enhancing its competitive edge and revenue potential.

Mohawk Financial Statement Overview

Summary

Mohawk's financial performance is stable with slight revenue growth and a strong balance sheet, but margins are under pressure. Cash flow is improving, yet operational efficiency needs enhancement.

Income Statement

Mohawk's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 0.7%, but margins have been under pressure. The gross profit margin is stable at around 24.4%, while the net profit margin is relatively low at 4.4%. EBIT and EBITDA margins have declined compared to previous years, reflecting operational challenges. Despite these pressures, the company has managed to maintain positive revenue growth, which is a positive sign.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.11 in the TTM period, indicating low leverage. Return on equity is modest at 6.0%, suggesting moderate profitability relative to equity. The equity ratio is healthy, indicating a strong capital structure. Overall, the balance sheet is stable, with a low risk of financial distress.

Cash Flow

Cash flow analysis shows a positive trend in free cash flow growth at 10.9% in the TTM period. However, the operating cash flow to net income ratio is relatively low at 0.32, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is stronger at 0.70, suggesting that the company is generating sufficient cash to cover its net income. While cash flow generation is improving, there are areas for enhancement in operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.68B	10.84B	11.14B	11.74B	11.20B	9.55B
Gross Profit	2.61B	2.69B	2.71B	2.94B	3.27B	2.43B
EBITDA	1.24B	1.33B	353.30M	831.30M	1.94B	1.24B
Net Income	474.20M	517.70M	-439.52M	25.25M	1.03B	515.60M
Balance Sheet
Total Assets	13.78B	12.78B	13.56B	14.12B	14.22B	14.33B
Cash, Cash Equivalents and Short-Term Investments	546.70M	666.60M	642.55M	667.62M	591.89M	1.34B
Total Debt	886.90M	2.63B	3.15B	3.22B	2.73B	3.07B
Total Liabilities	5.48B	5.22B	5.93B	6.10B	5.80B	5.79B
Stockholders Equity	8.30B	7.55B	7.62B	8.02B	8.43B	8.54B
Cash Flow
Free Cash Flow	650.40M	679.50M	716.30M	88.41M	633.00M	1.34B
Operating Cash Flow	926.60M	1.13B	1.33B	669.15M	1.31B	1.77B
Investing Cash Flow	-445.50M	-454.40M	-970.34M	-625.34M	-556.75M	-954.80M
Financing Cash Flow	-453.10M	-629.50M	-210.68M	194.35M	-1.23B	-188.19M

Mohawk Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 130.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHK, the sentiment is Neutral. The current price of 130.66 is below the 20-day moving average (MA) of 134.21, above the 50-day MA of 125.13, and above the 200-day MA of 116.45, indicating a neutral trend. The MACD of 2.41 indicates Positive momentum. The RSI at 48.94 is Neutral, neither overbought nor oversold. The STOCH value of 20.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MHK.

Mohawk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TILE	80 Outperform	1.73B	18.46	16.66%	0.17%	6.26%	44.74%
PATK	71 Outperform	3.53B	29.06	11.03%	1.51%	6.09%	-18.29%
MHK	69 Neutral	$8.12B	17.36	5.95%	―	-1.61%	―
LEG	54 Neutral	1.27B	9.40	-74.19%	2.13%	-6.15%	0.00%
WHR	49 Neutral	4.62B	-30.76	-6.38%	7.44%	-16.05%	-127.65%
MLKN	46 Neutral	1.36B	-35.89	-2.89%	3.74%	1.14%	-149.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Mohawk Corporate Events

Mohawk Announces $500 Million Share Buyback Program

On July 24, 2025, Mohawk Industries announced a new share repurchase program authorizing the repurchase of up to $500 million of its common stock, following the near completion of its 2022 program. The company reported second quarter 2025 net earnings of $147 million, with net sales remaining flat at $2.8 billion compared to the previous year. Despite challenging market conditions, Mohawk has implemented operational improvements and cost containment actions, contributing to productivity gains and restructuring benefits. The company is addressing tariff impacts through price adjustments and supply chain optimization, while continuing to focus on market development and leveraging its strong product portfolio to navigate ongoing industry pressures.