Mohawk (MHK)
NYSE:MHK
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Mohawk
(NYSE:MHK)
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Rating:67Neutral
Price Target:
$104.00
▲(8.04% Upside)
Action:ReiteratedDate:02/14/26
The score is driven primarily by a solid financial foundation (strong free cash flow and manageable/improving leverage) but capped by only partial profitability recovery and margin pressure. Technically, shares show strong upside momentum above major moving averages, though near-term momentum looks stretched. Valuation is moderate with a ~20 P/E and no dividend yield provided, while the latest earnings call adds a mixed outlook: cost/productivity actions and guidance support improvement, but demand, pricing, and tariff/input-cost risks remain key overhangs.
Positive Factors
Strong cash generation
Consistent, large free cash flow in 2025 demonstrates durable cash conversion and earnings quality. This provides capacity to fund restructuring, share repurchases, targeted capex, and debt reduction without relying on external financing, supporting financial flexibility through a multi-quarter recovery.
Negative Factors
Prolonged housing & remodeling weakness
Sustained low housing turnover and a multi-year industry downturn structurally suppress new-construction and remodeling demand. This reduces volume growth visibility, limits pricing power, and can keep utilization and returns depressed for several quarters until housing-market fundamentals improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, large free cash flow in 2025 demonstrates durable cash conversion and earnings quality. This provides capacity to fund restructuring, share repurchases, targeted capex, and debt reduction without relying on external financing, supporting financial flexibility through a multi-quarter recovery.
Read all positive factors
Mohawk (MHK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.92B
Dividend YieldN/A
Average Volume (3M)996.90K
Price to Earnings (P/E)18.3
Beta (1Y)1.00
Revenue Growth-0.82%
EPS Growth-23.99%
CountryUS
Employees41,900
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)2.00
Shares Outstanding61,460,358
10 Day Avg. Volume1,122,822
30 Day Avg. Volume996,903
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)0.81
Price to Sales (P/S)0.63
P/FCF Ratio11.02
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit3.00
Enterprise Value/Ebitda6.90
Forecast
1Y Price Target
$140.13Price Target Upside45.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)9.62
Revenue Forecast (FY)$11.05B
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 thr...
How the Company Makes Money
Mohawk makes money primarily by manufacturing and selling flooring products through multiple routes to market. Its core revenue stream is product sales across its major categories (soft surface such as carpet and rugs; and hard surface such as til...
Mohawk Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyMohawk Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: operational and financial strengths (strong free cash flow, disciplined balance sheet, segment-level wins in Global Ceramic, ongoing productivity and restructuring savings, and active tariff mitigation) partially offset persistent top-line and margin pressures from weak residential end markets, elevated input costs, tariffs, nonrecurring charges and pricing competition. Management expects 2026 to be a transitional year with modest volume recovery and improved earnings driven by pricing, mix and productivity, but results remain dependent on macro and housing-market inflection.Positive Updates
Q4 Net Sales and Reported Growth
Q4 net sales of approximately $2.7 billion, up 2.4% as reported versus prior year (approximately down 3.3% on a constant currency basis); performance in line with expectations.
Negative Updates
Full-Year Adjusted EPS Decline
Full-year adjusted EPS of $8.96, down approximately 7.5% year-over-year, reflecting volume weakness and higher input costs despite productivity and pricing actions.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Net Sales and Reported Growth
Q4 net sales of approximately $2.7 billion, up 2.4% as reported versus prior year (approximately down 3.3% on a constant currency basis); performance in line with expectations.
Read all positive updates
Company Guidance
Management guided first‑quarter adjusted EPS of $1.75–$1.85 (ex‑one‑time items), a full‑year 2026 non‑GAAP tax rate of 18.5%–19.5%, planned CapEx of about $480 million with depreciation & amortization of ~$626 million, and corporate expense of $52–$55 million; they said they expect to generate strong free cash flow (2025 was ~$620 million, Q4 ~$270 million), enter 2026 with gross debt of ~$2.0 billion and leverage of 0.9x adjusted EBITDA, and to cover tariff costs (management cited an approximately $100 million annualized impact) via pricing, mix and supply‑chain actions; management expects carry‑over restructuring savings of roughly $60+ million (with ~$30 million of additional Q4 actions largely flowing to 2027), anticipates some industry volume improvement in 2026 and that product mix, productivity and cost reductions will offset energy, labor and other inflationary headwinds, and noted Q1 seasonality includes four extra shipping days year‑over‑year (one extra sequential day).Mohawk Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
68
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.79B | 10.84B | 11.14B | 11.74B | 11.20B |
| Gross Profit | 2.57B | 2.69B | 2.71B | 2.94B | 3.27B |
| EBITDA | 1.14B | 1.33B | 353.30M | 831.30M | 1.94B |
| Net Income | 369.90M | 517.70M | -439.52M | 25.25M | 1.03B |
Balance Sheet | |||||
| Total Assets | 13.69B | 12.78B | 13.56B | 14.12B | 14.22B |
| Cash, Cash Equivalents and Short-Term Investments | 856.10M | 666.60M | 642.60M | 667.62M | 591.89M |
| Total Debt | 2.76B | 2.63B | 3.15B | 3.22B | 2.73B |
| Total Liabilities | 5.31B | 5.22B | 5.93B | 6.10B | 5.80B |
| Stockholders Equity | 8.38B | 7.55B | 7.62B | 8.01B | 8.42B |
Cash Flow | |||||
| Free Cash Flow | 616.20M | 679.50M | 710.71M | 88.41M | 633.00M |
| Operating Cash Flow | 1.06B | 1.13B | 1.32B | 669.15M | 1.31B |
| Investing Cash Flow | -441.90M | -454.40M | -970.34M | -625.34M | -556.75M |
| Financing Cash Flow | -470.00M | -629.50M | -205.09M | 194.35M | -1.23B |
Mohawk Technical Analysis
Negative
96.26
Price Trends
117.63
Negative
114.20
Negative
117.61
Negative
Market Momentum
-5.79
Positive
28.99
Positive
35.57
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 96.26 is below the 20-day moving average (MA) of 104.84, below the 50-day MA of 117.63, and below the 200-day MA of 117.61, indicating a bearish trend. The MACD of -5.79 indicates Positive momentum. The RSI at 28.99 is Positive, neither overbought nor oversold. The STOCH value of 35.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MHK.
Mohawk Risk Analysis
Mohawk disclosed 28 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.43B | 14.41 | 15.93% | 0.21% | 5.11% | 34.02% | |
67 Neutral | $5.92B | 18.35 | 4.50% | ― | -0.82% | -23.99% | |
65 Neutral | $1.31B | 18.08 | 8.12% | 2.39% | 1.78% | -25.36% | |
62 Neutral | $3.57B | 26.08 | 10.49% | 1.49% | 6.08% | -22.18% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
47 Neutral | $2.93B | 12.74 | 12.72% | 7.40% | -11.36% | -133.01% | |
47 Neutral | $1.06B | 53.13 | 1.98% | ― | 1.77% | -44.11% |
* Consumer Cyclical Sector Average
MHK
Mohawk
96.26
-17.92
-15.69%
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PATK
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WHR
Whirlpool
51.92
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MBC
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8.28
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Mohawk Corporate Events
Executive/Board Changes
Mohawk Names Paul De Cock Interim Global Flooring President
Neutral
Feb 6, 2026
On February 5, 2026, Mohawk Industries appointed Chief Operating Officer Paul De Cock as interim President of its Flooring Rest of World segment, following the resignation of Wim Messiaen from that role on the same date to pursue other interests. ...
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.