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Mohawk (MHK)
NYSE:MHK
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Mohawk (MHK) AI Stock Analysis

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MHK

Mohawk

(NYSE:MHK)

Rating:71Outperform
Price Target:
$134.00
▲(1.35% Upside)
Mohawk's overall score reflects stable financial performance and positive technical indicators, offset by challenges in revenue growth and market pressures. The share buyback program and operational improvements provide some optimism, but valuation concerns and flat sales temper the outlook.
Positive Factors
Cost Management
Mohawk continues to improve productivity and reduce costs, expecting significant cost savings and continued productivity actions in the future.
Market Share
Mohawk is gaining share, led by resilient laminate, residential carpet, and commercial carpet tile.
Product Innovation
Mohawk is outperforming the market with positive volume inflection driven by share gains and significant investments in new products.
Negative Factors
Earnings Guidance
Mohawk's second-quarter earnings guidance is slightly below consensus, reflecting near-term price cost headwinds.
Global Demand
Flooring demand is still weak globally due to elevated rates, low existing home turnover, remodeling deferrals and weakening consumer sentiment.

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

Mohawk Business Overview & Revenue Model

Company DescriptionMohawk Industries, Inc. (MHK) is a leading global flooring manufacturer, based in the United States, specializing in the production of a wide range of flooring products, including carpet, rugs, ceramic tile, laminate, wood, and vinyl. The company operates through various segments, including Global Ceramic, Flooring North America, and Flooring Rest of the World, catering to both residential and commercial markets. Mohawk's extensive portfolio includes well-known brands such as Mohawk, Karastan, Pergo, and Dal-Tile, among others, focusing on innovation and sustainability in its product offerings.
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
Any
Net Sales by Segment
Net Sales by Segment
Chart Insights
Data provided by:Main Street Data

Mohawk Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with stable revenue performance and strong cash flow being highlighted. However, challenges such as higher input costs, market pricing pressure, and slow residential remodeling due to geopolitical and economic factors were significant concerns. While the company is taking proactive steps through restructuring and operational improvements, the external environment remains challenging.
Q2-2025 Updates
Positive Updates
Stable Revenue Performance
Net sales for the second quarter were $2.8 billion, essentially flat as reported and on a constant basis. This was driven by premium residential and commercial products and new collections.
Strong Free Cash Flow and Stock Repurchase
Generated approximately $125 million in free cash flow and repurchased about 393,000 shares of stock for approximately $42 million. A new authorization to acquire $500 million of the company's outstanding stock was approved.
Restructuring Actions on Track
Restructuring actions are delivering expected savings with an anticipated $100 million in annual cost savings in 2025.
Sustainability and Green Energy
Continued investment in product circularity, material optimization, and green energy, with major media outlets recognizing the company for reducing its carbon footprint and fostering innovation.
Improved Efficiency in LVT Operations
Manufacturing enhancements at East and West Coast LVT operations increased operational efficiencies, improving cost position and supporting growing LVT sales.
Negative Updates
Higher Input Costs and Plant Shutdowns
Gross margin decreased by approximately 70 basis points due to higher input costs of $44 million, lower sales volume of $22 million, and increased shutdown costs of $18 million.
Continued Pricing Pressure
The industry faced continued pricing pressure from lower market volumes, which was mitigated through strengthening product and mix but remained a challenge.
Challenges in Residential Remodeling
Residential remodeling remains slow with ongoing geopolitical events, inflation, and low housing turnover contributing to market uncertainty.
Impact of Tariffs and Inventory Increases
Tariffs have led to increased imported inventory, and evolving U.S. trade policy is expected to have further impacts.
Company Guidance
During the Mohawk Industries second quarter 2025 earnings call, the company provided guidance for the third quarter, indicating an expected EPS range of $2.56 to $2.66, excluding any restructuring or one-time charges. The company reported second-quarter net sales of $2.8 billion, which were flat year-over-year, and adjusted earnings per share of $2.77. Despite challenging market conditions, Mohawk achieved a free cash flow of approximately $125 million and repurchased 393,000 shares for around $42 million, with a new $500 million stock buyback authorization approved by the Board. Operational improvements and cost containment strategies, including restructuring actions expected to save $100 million annually, were highlighted as key factors supporting their performance. Mohawk also noted ongoing inflation, geopolitical events, and low consumer confidence as constraints on industry sales, while emphasizing their strategic positioning for long-term growth as market conditions improve.

Mohawk Financial Statement Overview

Summary
Mohawk's financial performance is stable with moderate profitability and low leverage. The company has healthy margins and a strong equity base, though declining revenue and free cash flow growth present potential risks.
Income Statement
65
Positive
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
72
Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.84B11.14B11.74B11.20B9.55B
Gross Profit2.69B2.71B2.94B3.27B2.43B
EBITDA694.70M531.94M883.69M2.00B1.43B
Net Income517.70M-439.52M25.25M1.03B515.60M
Balance Sheet
Total Assets12.78B13.56B14.12B14.22B14.33B
Cash, Cash Equivalents and Short-Term Investments666.60M642.55M667.62M591.89M1.34B
Total Debt2.63B3.15B3.22B2.73B3.07B
Total Liabilities5.22B5.93B6.10B5.80B5.79B
Stockholders Equity7.55B7.62B8.02B8.43B8.54B
Cash Flow
Free Cash Flow679.50M716.30M88.41M633.00M1.34B
Operating Cash Flow1.13B1.33B669.15M1.31B1.77B
Investing Cash Flow-454.40M-970.34M-625.34M-556.75M-954.80M
Financing Cash Flow-629.50M-210.68M194.35M-1.23B-188.19M

Mohawk Technical Analysis

Technical Analysis Sentiment
Positive
Last Price132.22
Price Trends
50DMA
115.86
Positive
100DMA
109.99
Positive
200DMA
116.91
Positive
Market Momentum
MACD
4.40
Negative
RSI
64.55
Neutral
STOCH
82.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHK, the sentiment is Positive. The current price of 132.22 is above the 20-day moving average (MA) of 125.01, above the 50-day MA of 115.86, and above the 200-day MA of 116.91, indicating a bullish trend. The MACD of 4.40 indicates Negative momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 82.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
80
Outperform
$1.57B16.4918.63%0.15%6.26%44.74%
71
Outperform
$8.15B17.435.95%-1.61%
70
Outperform
$3.78B31.1111.25%1.40%6.09%-18.29%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
58
Neutral
$1.46B45.68-2.77%3.49%1.14%-149.26%
55
Neutral
$1.33B9.4318.68%2.06%-6.15%
49
Neutral
$5.31B738.81-5.35%7.40%-16.05%-127.65%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MHK
Mohawk
132.22
-22.32
-14.44%
MLKN
MillerKnoll
21.52
-6.91
-24.31%
TILE
Interface
27.11
8.91
48.96%
LEG
Leggett & Platt
9.73
-2.75
-22.04%
PATK
Patrick Industries
114.02
29.28
34.55%
WHR
Whirlpool
94.60
-0.50
-0.53%

Mohawk Corporate Events

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Mohawk Announces $500 Million Share Buyback Program
Positive
Jul 24, 2025

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.

The most recent analyst rating on (MHK) stock is a Buy with a $161.00 price target. To see the full list of analyst forecasts on Mohawk stock, see the MHK Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Mohawk Holds Annual Stockholders Meeting, Elects Directors
Neutral
May 23, 2025

On May 22, 2025, Mohawk held its Annual Meeting of Stockholders, where key decisions were made regarding the company’s governance and financial oversight. The stockholders elected Joseph A. Onorato, William H. Runge III, and W. Christopher Wellborn as directors for a three-year term. Additionally, KPMG LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. A non-binding advisory vote on the compensation of the company’s Named Executive Officers was also conducted.

The most recent analyst rating on (MHK) stock is a Buy with a $161.00 price target. To see the full list of analyst forecasts on Mohawk stock, see the MHK Stock Forecast page.

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: Jul 29, 2025