Mohawk (MHK) AI Stock Analysis

• Market Cap: $6.54B
• Dividend Yield: N/A
• Average Volume (3M): 854.11K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.17
• Revenue Growth: -2.95%
• EPS Growth: N/A
• Country: US
• Employees: 41,900
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 7.64
• Shares Outstanding: 62,515,594
• 10 Day Avg. Volume: 835,099
• 30 Day Avg. Volume: 854,110
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $132.33
• Price Target Upside: 26.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Mohawk's overall stock score of 66 reflects a stable financial position with low leverage and reasonable valuation, but challenges such as declining revenue and market pressures weigh on the outlook. The technical indicators do not suggest strong momentum, and while the earnings call highlighted productivity gains, it also underscored existing headwinds. The recent executive appointment is a positive but minor factor in the overall assessment.

Positive Factors

Market Share

Mohawk is gaining share, especially in North America where volume grew YoY in a down market led by laminate, residential carpet, and commercial carpet tile.

Stock Recommendation

Analyst's recommendation is upgrading the rating on MHK’s equity to Outperform with a $150 price target, indicating a 27% upside.

Valuation

Shares trade at 5.8x 2026 EV/EBITDA below its historical valuation and below its historical discount to building product peers, making valuation attractive.

Negative Factors

Core Performance

FNA core performance was weaker year-over-year, which many investors noted as a concern after the earnings report.

Input Costs

Natural gas, melamine crystals, and polyester inputs are expected to largely offset cost savings, highlighting ongoing input pressures.

Operational Issues

Management indicated that ERP issues were related to 'order to cash' problems, which might affect operational efficiency.

Mohawk Business Overview & Revenue Model

Company Description

Mohawk Industries, Inc. (MHK) is a leading global flooring manufacturer that designs, manufactures, sources, and distributes flooring products for residential and commercial applications. Headquartered in Calhoun, Georgia, the company operates in three primary segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. Mohawk's extensive product portfolio includes carpet, rugs, ceramic tile, laminate, wood, stone, and luxury vinyl tile, making it one of the most diversified flooring companies worldwide.

How the Company Makes Money

Mohawk Industries generates revenue primarily through the sale of its extensive range of flooring products across its three key segments. The Global Ceramic segment is responsible for creating and distributing ceramic tile, porcelain tile, and natural stone flooring products. The Flooring North America segment focuses on selling carpet, laminate, resilient, hardwood, and other flooring products within the United States and Canada. The Flooring Rest of the World segment targets international markets outside North America, offering similar flooring solutions. Mohawk's revenue model is heavily reliant on the housing and construction industries, with its earnings influenced by factors such as new residential constructions, remodeling projects, and commercial building activities. The company also benefits from strategic acquisitions and partnerships that enhance its product offerings and market reach.

Mohawk Financial Statement Overview

Summary

Mohawk demonstrates stable financial performance with moderate profitability, as reflected in a gross profit margin of 24.86% and a net profit margin of 4.54%. The company's low debt-to-equity ratio of 0.14 underscores financial stability. However, challenges are evident in declining revenue growth at -1.42% and a decrease in free cash flow growth by -13.72%, highlighting areas requiring attention.

Income Statement

Mohawk's TTM (Trailing-Twelve-Months) income statement shows a moderate gross profit margin of 24.86% and a net profit margin of 4.54%, indicating a reasonable level of profitability. The EBIT margin stands at 6.41%, while the EBITDA margin is 10.95%, reflecting stable operating performance. However, the revenue has been declining, with a negative growth rate of -1.42% from the previous year, highlighting potential challenges in maintaining top-line growth.

Balance Sheet

The balance sheet reveals a healthy equity position with a debt-to-equity ratio of 0.14, suggesting low financial leverage. The return on equity (ROE) is 6.17%, indicating a moderate level of profitability for shareholders. The equity ratio is 58.64%, emphasizing a strong equity base compared to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis shows a marginal free cash flow growth rate of -13.72%, reflecting a decrease in available cash after capital expenditures. The operating cash flow to net income ratio of 1.97 indicates efficient cash generation relative to earnings. The free cash flow to net income ratio is 1.21, suggesting a solid cash conversion from profits, despite the decline in free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.84B	11.14B	11.74B	11.20B	9.55B
	Gross Profit
2.69B	2.71B	2.94B	3.27B	2.43B
	EBIT
694.70M	-287.81M	931.60M	755.53M	29.25M
	EBITDA
694.70M	531.94M	883.69M	2.00B	1.43B
	Net Income Common Stockholders
517.70M	-439.52M	25.25M	1.03B	515.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	642.55M	667.62M	591.89M	1.34B
	Total Assets
12.78B	13.56B	14.12B	14.22B	14.33B
	Total Debt
2.63B	3.15B	3.22B	2.73B	3.07B
	Net Debt
1.96B	2.51B	2.71B	2.46B	2.30B
	Total Liabilities
5.22B	5.93B	6.10B	5.80B	5.79B
	Stockholders Equity
7.55B	7.62B	8.02B	8.43B	8.54B
Cash Flow		Free Cash Flow
679.50M	716.30M	88.41M	633.00M	1.34B
	Operating Cash Flow
1.13B	1.33B	669.15M	1.31B	1.77B
	Investing Cash Flow
-454.40M	-970.34M	-625.34M	-556.75M	-954.80M
	Financing Cash Flow
-629.50M	-210.68M	194.35M	-1.23B	-188.19M

Mohawk Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 104.69 is above the 20-day moving average (MA) of 104.57, below the 50-day MA of 110.93, and below the 200-day MA of 132.31, indicating a neutral trend. The MACD of -1.42 indicates Negative momentum. The RSI at 44.94 is Neutral, neither overbought nor oversold. The STOCH value of 59.38 is Neutral, 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	72 Outperform	$1.13B	13.10	18.90%	0.21%	4.29%	95.04%
MHK	66 Neutral	$6.54B	13.70	6.26%	―	-2.95%	―
PATK	64 Neutral	$2.78B	20.17	12.87%	1.85%	8.12%	-5.17%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%
LEG	54 Neutral	$1.29B	―	-50.33%	2.10%	-6.54%	-221.33%
MLKN	52 Neutral	$1.13B	39.37	2.28%	4.49%	-2.68%	-56.16%
WHR	51 Neutral	$4.50B	13.03	0.37%	8.99%	-18.43%	-97.97%

Mohawk Corporate Events

Mohawk Appoints David Repp as Chief Accounting Officer

On March 31, 2025, Mohawk Industries announced the appointment of David L. Repp as Senior Vice President – Chief Accounting Officer and Corporate Controller. Mr. Repp, who has been with the company since 2005, has held various roles, including Vice President positions in finance and segment control. He succeeds James F. Brunk, who served as interim Chief Accounting Officer since March 14, 2025, and will continue as Chief Financial Officer. This leadership change is expected to strengthen Mohawk’s financial management and operational continuity.

Mohawk CFO William Harkins Announces Resignation

On February 25, 2025, William W. Harkins announced his resignation from Mohawk Industries, Inc., effective March 14, 2025, to pursue another opportunity. In response, James F. Brunk will temporarily assume the roles of Chief Accounting Officer and Corporate Controller in addition to his duties as Chief Financial Officer while the company searches for a permanent replacement.