Mohawk (MHK) AI Stock Analysis

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Mohawk

(NYSE:MHK)

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Neutral 64 (OpenAI - 4o)

Rating:64Neutral

Price Target:

$128.00

▲(10.74% Upside)

Mohawk's overall stock score reflects a company in recovery, with strong cash flow and effective leverage management being significant strengths. However, ongoing economic challenges, tariff impacts, and declining sales in key segments weigh on the outlook. The technical indicators suggest potential bearish momentum, and the valuation is moderate. The earnings call provides cautious optimism, but significant risks remain.

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 (MHK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$7.15B

Dividend YieldN/A

Average Volume (3M)790.97K

Price to Earnings (P/E)17.2

Beta (1Y)1.05

Revenue Growth-0.82%

EPS Growth-23.99%

CountryUS

Employees41,900

SectorConsumer Cyclical

Sector Strength84

IndustryFurnishings, Fixtures & Appliances

Share Statistics

EPS (TTM)2.67

Shares Outstanding61,821,360

10 Day Avg. Volume959,190

30 Day Avg. Volume790,973

Financial Highlights & Ratios

PEG Ratio-0.07

Price to Book (P/B)1.00

Price to Sales (P/S)0.70

P/FCF Ratio11.10

Enterprise Value/Market Cap1.38

Enterprise Value/Revenue0.92

Enterprise Value/Gross Profit3.82

Enterprise Value/Ebitda8.39

Forecast

1Y Price Target

$135.75

Price Target Upside17.44% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering9

Mohawk Business Overview & Revenue Model

Company DescriptionMohawk 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 MoneyMohawk 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 Key Performance Indicators (KPIs)

Any

Revenue by Geography

Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.

Chart InsightsMohawk's revenue in the United States shows a fluctuating trend, reflecting challenges in the residential remodeling market and pricing pressures. Europe and LATAM are showing signs of recovery, with steady growth in recent quarters. The earnings call highlights operational improvements and cost containment strategies, which are crucial as the company navigates higher input costs and geopolitical uncertainties. The strategic focus on premium products and restructuring efforts are expected to bolster long-term growth, despite current market constraints.

Data provided by:

Main Street Data

Mohawk Earnings Call Summary

Earnings Call Date:Oct 23, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Feb 05, 2026

Earnings Call Sentiment Neutral

The earnings call highlighted significant achievements in cash flow generation, share repurchases, and cost savings from restructuring efforts. However, these positive aspects were balanced by ongoing challenges such as weaker-than-expected economic conditions, tariff impacts, and declines in key segments like Flooring North America. The outlook remains cautious with expectations for improvement as macroeconomic conditions stabilize.

Q3-2025 Updates

Positive Updates

Free Cash Flow and Share Repurchase

Generated approximately $310 million in free cash flow and repurchased 315,000 shares for approximately $40 million in the quarter, with a year-to-date total of $108 million in share buybacks.

Restructuring Savings

Identified additional restructuring opportunities to deliver $32 million in annualized savings. Combined with previous actions, total expected savings are $110 million for the year.

European Market Potential

Lower inflation and record savings levels in Europe are expected to encourage discretionary spending, with some governments initiating programs to incentivize new home construction.

Negative Updates

Challenging Market Conditions

Economic conditions weakened more than anticipated, with consumer uncertainty limiting discretionary spending on large projects, particularly residential remodeling.

Tariff Impact and Price Increases

Tariffs on imported products are increasing costs, resulting in price increases between 5% and 10% to offset this. This is expected to take time to equilibrate in the market.

Decline in Flooring North America Sales

Flooring North America had sales of $937 million, a 3.8% decrease due to pressure in residential new construction and remodeling.

Pressure on European Markets

Continued pricing pressure in Europe due to low market demand and ongoing geopolitical events, with residential remodeling and new construction remaining constrained.

Company Guidance

During the Mohawk Industries Q3 2025 earnings call, the company provided guidance for Q4 2025, indicating an expected adjusted EPS range of $1.90 to $2.00, accounting for one additional shipping day. The company highlighted ongoing challenges due to economic conditions but noted improvements in net sales, which reached $2.8 billion, a 1.4% increase year-over-year on a reported basis. They achieved an adjusted EPS of $2.67 for Q3, driven by productivity gains, favorable currency exchange, and lower interest expenses, despite higher input costs and temporary plant shutdowns. Restructuring initiatives are expected to yield annualized savings of approximately $32 million, contributing to a total of $110 million in savings for the year. Free cash flow was approximately $310 million for the quarter, with $40 million allocated to share repurchases. The company remains focused on optimizing its cost structure and enhancing operational efficiency to prepare for a market recovery.

Mohawk Financial Statement Overview

Summary

Mohawk's financial statements reflect a company in recovery mode. The income statement shows improving margins and revenue growth, while the balance sheet demonstrates effective leverage management. The cash flow statement highlights strong cash generation, supporting the company's financial stability. However, there is still room for improvement in profitability and operational efficiency to reach industry benchmarks.

Income Statement

Positive

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

Positive

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

Positive

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 Price115.59

Price Trends

50DMA

128.68

Negative

100DMA

120.95

Negative

200DMA

116.60

Negative

Market Momentum

MACD

-2.44

Positive

RSI

33.49

Neutral

STOCH

5.41

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 115.59 is below the 20-day moving average (MA) of 123.60, below the 50-day MA of 128.68, and below the 200-day MA of 116.60, indicating a bearish trend. The MACD of -2.44 indicates Positive momentum. The RSI at 33.49 is Neutral, neither overbought nor oversold. The STOCH value of 5.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MHK.

Mohawk Risk Analysis

Mohawk disclosed 26 risk factors in its most recent earnings report. Mohawk reported the most risks in the "Macro & Political" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Mohawk Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TILE	―	$1.56B	16.42	18.63%	0.19%	6.26%	44.74%
LEG	―	$1.36B	6.58	26.19%	1.99%	-6.05%	―
PATK	―	$3.36B	26.76	11.25%	1.59%	6.09%	-18.29%
MHK	―	$7.15B	17.21	5.20%	―	-0.82%	-23.99%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	―	$1.07B	-62.59	-1.18%	4.39%	5.37%	-127.27%
WHR	―	$4.19B	―	-6.68%	8.25%	-11.36%	-133.01%

* Consumer Cyclical Sector Average

Performance Comparison

MHK

Mohawk

115.59

-18.69

-13.92%

MLKN

MillerKnoll

15.59

-6.40

-29.10%

TILE

Interface

26.67

3.48

15.01%

LEG

Leggett & Platt

9.53

-2.24

-19.03%

PATK

Patrick Industries

100.83

24.93

32.85%

WHR

Whirlpool

71.72

-25.12

-25.94%

Mohawk Corporate Events

Mohawk Industries Balances Achievements and Challenges in Earnings Call

Oct 25, 2025

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

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 26, 2025