Mohawk (MHK) AI Stock Analysis

• Market Cap: $7.49B
• Dividend Yield: N/A
• Average Volume (3M): 840.57K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.11
• Revenue Growth: -1.61%
• EPS Growth: N/A
• Country: US
• Employees: 41,900
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 2.77
• Shares Outstanding: 62,131,912
• 10 Day Avg. Volume: 1,113,940
• 30 Day Avg. Volume: 840,571
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: 9.32
• 1Y Price Target: $130.00
• Price Target Upside: 8.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 71 Outperform
• Price Target: $134.00 ▲(12.33% 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

Competitive Position

Mohawk could be a relative tariff winner as 85% of its products are not impacted by tariffs and it has a strong domestic manufacturing footprint.

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

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.

Operational Challenges

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 headquartered in Calhoun, Georgia. The company operates in several sectors, including carpets, rugs, ceramic tile, laminate, wood, stone, and vinyl flooring. Mohawk serves both residential and commercial markets, providing a diverse range of products that cater to various customer preferences and needs. With a commitment to sustainability, innovation, and quality, Mohawk has established itself as a prominent player in the flooring industry.

How the Company Makes Money

Mohawk Industries generates revenue through the manufacturing and sale of flooring products across multiple categories such as carpets, rugs, ceramic tile, laminate, wood, stone, and vinyl. The company sells its products to a wide range of customers, including independent retailers, home centers, mass merchants, and commercial contractors. Key revenue streams include sales in both the residential and commercial sectors, with a significant portion of revenue derived from North American and European markets. Mohawk's earnings are bolstered by strategic acquisitions, which expand its product offerings and market reach, as well as by maintaining efficient manufacturing processes and a strong distribution network. The company's partnerships with retailers and distributors further enhance its market presence and contribute to its overall financial performance.

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

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
EBITDA	694.70M	531.94M	883.69M	2.00B	1.43B
Net Income	517.70M	-439.52M	25.25M	1.03B	515.60M
Balance Sheet
Total Assets	12.78B	13.56B	14.12B	14.22B	14.33B
Cash, Cash Equivalents and Short-Term Investments	666.60M	642.55M	667.62M	591.89M	1.34B
Total Debt	2.63B	3.15B	3.22B	2.73B	3.07B
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: Positive
• Last Price: 119.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 119.29 is above the 20-day moving average (MA) of 114.31, above the 50-day MA of 107.62, and above the 200-day MA of 118.58, indicating a bullish trend. The MACD of 3.06 indicates Negative momentum. The RSI at 60.73 is Neutral, neither overbought nor oversold. The STOCH value of 51.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MHK.

Mohawk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TILE	79 Outperform	$1.49B	15.61	18.63%	0.16%	6.26%	44.74%
PATK	72 Outperform	$3.43B	27.14	11.25%	1.52%	6.09%	-18.29%
MHK	71 Outperform	$7.49B	16.02	5.95%	―	-1.61%	―
Sector *	61 Neutral	$16.48B	10.10	-9.02%	3.34%	1.46%	-23.13%
MLKN	56 Neutral	$1.34B	45.68	-2.77%	4.12%	1.14%	-149.26%
LEG	51 Neutral	$1.09B	7.88	18.67%	2.30%	-6.16%	―
WHR	50 Neutral	$4.72B	738.81	-5.35%	8.47%	-16.05%	-127.65%

Mohawk Corporate Events

Mohawk Announces $500 Million Share Buyback Program

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.

Mohawk Holds Annual Stockholders Meeting, Elects Directors

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.