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Mohawk
(NYSE:MHK)
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Rating:72Outperform
Price Target:
$148.00
▲(30.66% Upside)
Action:Reiterated
Date:08/04/26
MHK scores 72 primarily due to improving financial performance—especially strong free cash flow and materially reduced leverage—reinforced by a constructive earnings update showing growth and margin expansion. The score is moderated by technically overextended momentum signals and mixed durability factors (inflation pressure, soft residential demand, and tariff-refund impacts), while valuation is fair but not a clear bargain and corporate events are supportive but secondary.
Positive Factors
Strong free cash flow generation
Sustained FCF near $1B provides a durable internal funding source for capex, debt paydown and shareholder returns. Over the next 2–6 months strong cash conversion underpins flexibility to invest in product programs, absorb cyclical weakness and support buybacks without leaning on external financing.
Negative Factors
Persistent input-cost inflation
Elevated and rising input costs create structural margin pressure that may require additional price increases, reducing margin visibility. Even with productivity and mix offsets, persistent inflation can erode operating leverage and constrain sustainable margin expansion over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained FCF near $1B provides a durable internal funding source for capex, debt paydown and shareholder returns. Over the next 2–6 months strong cash conversion underpins flexibility to invest in product programs, absorb cyclical weakness and support buybacks without leaning on external financing.
Read all positive factors
Mohawk Key Performance Indicators (KPIs)
Any
Revenue by Geography
Details top-line sales by country or region to highlight local performance and seasonal or macroeconomic drivers affecting Mohawk. Useful for spotting concentrated market risk, the impact of currency moves, and where incremental international growth might come from.
Details top-line sales by country or region to highlight local performance and seasonal or macroeconomic drivers affecting Mohawk. Useful for spotting concentrated market risk, the impact of currency moves, and where incremental international growth might come from.
Data provided by:
The Fly
The FlyMohawk (MHK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.42B
Dividend YieldN/A
Average Volume (3M)736.20K
Price to Earnings (P/E)18.5
Beta (1Y)1.07
Revenue Growth4.62%
EPS Growth0.16%
CountryUS
Employees40,500
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)7.57
Shares Outstanding67,738,144
10 Day Avg. Volume713,333
30 Day Avg. Volume736,202
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$128.50Price Target Upside13.45% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)9.78
Revenue Forecast (FY)$11.16B
Mohawk Business Overview & Revenue Model
Company Description
Mohawk Industries, Inc. is a global leader specializing in the manufacturing, sourcing, distribution, and marketing of diverse flooring solutions. The company serves both residential and commercial clients, addressing needs for new construction an...
How the Company Makes Money
Mohawk makes money primarily by selling flooring products and related materials to wholesale and retail channels and to commercial and residential customers. Revenue is generated from (1) North American Flooring, which includes carpet, rugs, carpe...
Mohawk Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presented a clear beat versus expectations with broad-based revenue growth, margin expansion, strong cash generation and successful product placements that drove share gains. Management acknowledged several meaningful headwinds — notably elevated underlying inflation, soft residential demand, upcoming restructuring costs, and quarter-to-quarter seasonality — and signaled possible additional pricing actions if inflation persists. Overall, the positives (top-line outperformance, margin improvement, cash flow, product momentum and continued buybacks) were emphasized as durable operational strengths, while the lowlights were characterized as manageable but material near-term risks.Positive Updates
Top-line Growth and Share Gains
Net sales of $3.0 billion in Q2 2026, up 6.8% as reported and up 5.0% on a constant currency basis. Management reported share gains across regions and channels driven by new product placements and initial stocking.
Negative Updates
Residential Demand Weakness
Residential channels remained soft; new home construction remains pressured and existing home sales impacted by affordability headwinds — management expects residential to lag commercial.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Growth and Share Gains
Net sales of $3.0 billion in Q2 2026, up 6.8% as reported and up 5.0% on a constant currency basis. Management reported share gains across regions and channels driven by new product placements and initial stocking.
Read all positive updates
Company Guidance
For Q3 2026 Mohawk guided adjusted EPS (ex‑restructuring/one‑time charges) of $2.50–$2.60 (including ≈$0.12 of additional tariff refunds) — or a baseline range of $2.38–$2.48 excluding those refunds — with an expected Q3 tax rate of ~22% and one extra shipping day versus Q2/prior‑year Q3; management said underlying inflation steps up by roughly $35M from Q2 to Q3 but believes price/mix and productivity should offset it for Q3 and the year (while higher input costs are expected to persist into Q4 and could require more pricing), reiterated 2026 capex of ≈$460M, noted year‑to‑date free cash flow of $236M and strong H2 FCF expected, net debt just under $1.1B (net debt/EBITDA ~0.8x), and that ongoing restructuring will yield ≈$60M of annual savings with ≈$50M of cash restructuring charges.Mohawk Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.18B | 10.79B | 10.84B | 11.14B | 11.74B | 11.20B |
| Gross Profit | 2.75B | 2.57B | 2.69B | 2.71B | 2.94B | 3.27B |
| EBITDA | 1.26B | 1.14B | 1.33B | 353.30M | 831.30M | 1.94B |
| Net Income | 464.10M | 369.90M | 517.70M | -439.52M | 25.25M | 1.03B |
Balance Sheet | ||||||
| Total Assets | 13.82B | 13.69B | 12.78B | 13.56B | 14.12B | 14.22B |
| Cash, Cash Equivalents and Short-Term Investments | 849.60M | 856.10M | 666.60M | 642.60M | 667.62M | 591.89M |
| Total Debt | 2.36B | 2.46B | 2.63B | 3.15B | 3.22B | 2.73B |
| Total Liabilities | 5.28B | 5.31B | 5.22B | 5.93B | 6.10B | 5.80B |
| Stockholders Equity | 8.54B | 8.37B | 7.55B | 7.62B | 8.01B | 8.42B |
Cash Flow | ||||||
| Free Cash Flow | 811.50M | 616.20M | 679.50M | 710.71M | 88.41M | 633.00M |
| Operating Cash Flow | 1.27B | 1.06B | 1.13B | 1.32B | 669.15M | 1.31B |
| Investing Cash Flow | -459.90M | -441.90M | -454.40M | -970.34M | -625.34M | -556.75M |
| Financing Cash Flow | -512.80M | -470.00M | -629.50M | -205.09M | 194.35M | -1.23B |
Mohawk Technical Analysis
Positive
113.27
Price Trends
116.97
Positive
109.64
Positive
112.25
Positive
Market Momentum
7.15
Negative
72.65
Negative
92.76
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 113.27 is below the 20-day moving average (MA) of 125.05, below the 50-day MA of 116.97, and above the 200-day MA of 112.25, indicating a bullish trend. The MACD of 7.15 indicates Negative momentum. The RSI at 72.65 is Negative, neither overbought nor oversold. The STOCH value of 92.76 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 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.24B | 15.18 | 18.54% | 0.30% | 6.54% | 53.02% | |
72 Outperform | $9.42B | 18.51 | 5.52% | ― | 4.62% | 0.16% | |
70 Outperform | $1.67B | 16.81 | 9.83% | 2.38% | 0.83% | 4.17% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $2.78B | 18.87 | 12.61% | 2.14% | 3.20% | 18.00% | |
51 Neutral | $1.89B | -13.26 | -6.44% | ― | -0.01% | -192.77% | |
49 Neutral | $2.79B | 14.02 | 5.83% | 11.94% | -3.92% | ― |
* Consumer Cyclical Sector Average
MHK
Mohawk
140.10
12.02
9.38%
TILE
Interface
37.96
11.44
43.13%
LZB
La-Z-Boy Incorporated
41.85
4.17
11.06%
PATK
Patrick Industries
86.06
-24.82
-22.38%
WHR
Whirlpool
41.37
-43.68
-51.36%
MBC
MasterBrand Inc
9.15
-3.37
-26.92%
Mohawk Corporate Events
Business Operations and StrategyExecutive/Board Changes
Mohawk Announces CEO Succession and Leadership Transition Plan
Positive
Jun 11, 2026
On June 11, 2026, Mohawk Industries announced a CEO succession plan under which President and Chief Operating Officer Paul F. De Cock will become chief executive and join the board on September 30, 2026, succeeding long-time CEO Jeffrey S. Lorberb...
Executive/Board ChangesShareholder Meetings
Mohawk Shareholders Approve Directors, Incentive Plan and Auditor
Positive
May 21, 2026
At Mohawk Industries’ annual meeting held on May 21, 2026, shareholders re-elected directors Karen A. Smith Bogart, Jeffrey S. Lorberbaum and Bernard P. Thiers to three-year terms, with each nominee receiving strong majority support. Investo...
Business Operations and StrategyPrivate Placements and Financing
Mohawk Establishes New $1.5 Billion Revolving Credit Facility
Positive
May 13, 2026
On May 12, 2026, Mohawk Industries refinanced its existing revolving credit facility by entering into a new unsecured credit agreement providing $1.5 billion in initial revolving commitments with JPMorgan entities as administrative agents. The New...
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.