Mohawk Industries, Inc. (MHK)
NYSE:MHK
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Mohawk
(NYSE:MHK)
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Rating:69Neutral
Price Target:
$111.00
▲(1.99% Upside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by improving financial performance and a de-risked, low-leverage balance sheet, supported by constructive earnings guidance and operational/margin progress. Offsetting this are a weaker longer-term price trend, ongoing volume softness, and expected input-cost inflation that could pressure margins, while valuation is reasonable but lacks dividend support.
Positive Factors
Balance sheet strength
Very low leverage provides durable financial flexibility: it cushions against cyclical revenue swings, funds sustained capex and restructuring, and supports buybacks or acquisitions without stressing liquidity. That balance-sheet strength reduces refinancing risk over the next 2–6 months.
Negative Factors
Volume weakness (constant-currency)
Underlying volume declines across key regions signal persistent demand headwinds, especially in residential. Structural weakness in shipment volumes can persist through housing-cycle recovery periods, limiting revenue leverage and making margin improvement reliant on productivity and pricing rather than organic volume growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage provides durable financial flexibility: it cushions against cyclical revenue swings, funds sustained capex and restructuring, and supports buybacks or acquisitions without stressing liquidity. That balance-sheet strength reduces refinancing risk over the next 2–6 months.
Read all positive factors
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 (MHK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.85B
Dividend YieldN/A
Average Volume (3M)724.03K
Price to Earnings (P/E)16.6
Beta (1Y)1.02
Revenue Growth2.85%
EPS Growth-12.89%
CountryUS
Employees41,900
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)6.68
Shares Outstanding60,953,144
10 Day Avg. Volume765,687
30 Day Avg. Volume724,033
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 Cap1.20
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit3.08
Enterprise Value/Ebitda6.95
Forecast
1Y Price Target
$117.20Price Target Upside7.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)8.58
Revenue Forecast (FY)$10.95B
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
Mixed/neutral: the company delivered solid operating improvements in Q1 — notably adjusted EPS up ~25%, margin expansion, segment profit improvement, a share buyback and a strong balance sheet — but material headwinds remain. Input-cost inflation tied to energy and transportation, uncertainty from the Middle East conflict, continued residential volume weakness (constant-currency sales decline), modest free cash flow, and potential for additional pricing or margin pressure balance the positives. Management is pursuing productivity, price increases and disciplined capital allocation, but outcomes hinge on the evolution of inflation and consumer confidence.Positive Updates
Adjusted EPS Growth
Adjusted EPS of $1.90 in Q1 2026, up approximately 25% versus the prior year.
Negative Updates
Input Cost Inflation
Rising input costs tied to materials, energy and transportation cited as a headwind (quarter-level increased input costs disclosed in the range of ~$28M–$38M) with expectation that inflation will ramp in Q2 and peak into Q3.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EPS Growth
Adjusted EPS of $1.90 in Q1 2026, up approximately 25% versus the prior year.
Read all positive updates
Company Guidance
One-month into Q2 management is guiding adjusted EPS of $2.50–$2.60 (ex‑restructuring/one‑time items), a full‑year 2026 tax rate of 19–20%, and corporate expenses of $52–$55M, while planning ~ $480M of 2026 CapEx (Q1 CapEx $102M) and expecting $50–$60M of restructuring savings this year; they used Q1 as a baseline (Q1 adjusted EPS $1.90, net sales ≈ $2.7B, +8% reported / -2.6% constant, gross margin 23.5% reported / 24.8% adjusted, adjusted operating income $149M or 5.5% of sales vs. reported operating income $112M or 4.1%, $38M nonrecurring charges), and highlighted balance sheet and cash metrics (cash $872M, free cash flow $8M, inventories ≈ $2.7B, PP&E ≈ $4.7B, net debt $1.2B, net debt/EBITDA 0.9) plus actions taken (607k shares repurchased for $64M in Q1, announced mid‑to‑high single‑digit price increases) while cautioning that input cost inflation will ramp in H2 and could require further pricing.Mohawk Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.99B | 10.79B | 10.84B | 11.14B | 11.74B | 11.20B |
| Gross Profit | 2.67B | 2.57B | 2.69B | 2.71B | 2.94B | 3.27B |
| EBITDA | 1.18B | 1.14B | 1.33B | 353.30M | 831.30M | 1.94B |
| Net Income | 414.40M | 369.90M | 517.70M | -439.52M | 25.25M | 1.03B |
Balance Sheet | ||||||
| Total Assets | 13.79B | 13.69B | 12.78B | 13.56B | 14.12B | 14.22B |
| Cash, Cash Equivalents and Short-Term Investments | 872.30M | 856.10M | 666.60M | 642.60M | 667.62M | 591.89M |
| Total Debt | 2.52B | 2.46B | 2.63B | 3.15B | 3.22B | 2.73B |
| Total Liabilities | 5.41B | 5.31B | 5.22B | 5.93B | 6.10B | 5.80B |
| Stockholders Equity | 8.38B | 8.37B | 7.55B | 7.62B | 8.01B | 8.42B |
Cash Flow | ||||||
| Free Cash Flow | 709.40M | 616.20M | 679.50M | 710.71M | 88.41M | 633.00M |
| Operating Cash Flow | 1.16B | 1.06B | 1.13B | 1.32B | 669.15M | 1.31B |
| Investing Cash Flow | -455.10M | -441.90M | -454.40M | -970.34M | -625.34M | -556.75M |
| Financing Cash Flow | -549.00M | -470.00M | -629.50M | -205.09M | 194.35M | -1.23B |
Mohawk Technical Analysis
Positive
108.83
Price Trends
104.20
Positive
109.21
Positive
114.07
Negative
Market Momentum
2.03
Negative
59.61
Neutral
63.35
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 108.83 is above the 20-day moving average (MA) of 106.21, above the 50-day MA of 104.20, and below the 200-day MA of 114.07, indicating a neutral trend. The MACD of 2.03 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 63.35 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.89B | 15.02 | 16.69% | 0.21% | 7.34% | 48.24% | |
70 Outperform | $1.58B | 15.94 | 9.83% | 2.39% | 0.83% | 4.17% | |
69 Neutral | $6.85B | 16.64 | 4.97% | ― | 2.85% | -12.89% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $2.87B | 20.83 | 11.64% | 1.49% | 4.20% | -3.21% | |
44 Neutral | $1.86B | -577.58 | -0.15% | ― | -1.11% | -101.88% | |
43 Neutral | $2.52B | 14.12 | 5.85% | 7.40% | -3.60% | 1945.71% |
* Consumer Cyclical Sector Average
MHK
Mohawk
112.30
9.42
9.16%
TILE
Interface
32.56
11.89
57.49%
LZB
La-Z-Boy Incorporated
39.66
2.37
6.35%
PATK
Patrick Industries
87.37
-2.72
-3.02%
WHR
Whirlpool
38.86
-51.63
-57.06%
MBC
MasterBrand Inc
9.06
-1.53
-14.45%
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.