One-glance verdict
Within fair range
$134.99 our estimate vs market $128.01
Wall Street consensus: $135.79 (0.6% higher than our fair-value estimate)
5% below our estimate
Fundamentals snapshot
Mohawk Industries, Inc.
MHK · NYQ · Consumer Cyclical · Furnishings, Fixtures & Appliances
Current price
$128.01
52-week range
$92.99 - $140.30
Market cap
$8.67B
Balance sheet
Healthy
28.63x Strong cushion
Net debt $1.51B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 3.6% last year.
- Reward Free cash flow was positive in 10/10 years.
- Reward Trades at 17.0x P/E vs peer median 22.3x (24.0% cheaper).
What this company does
Mohawk Industries, Inc.
Mohawk Industries is one of the world's largest flooring companies, making everything from carpets and rugs to tile, wood, and vinyl floors. The company earns its money selling these products for both home renovations and new building construction. This means its success is often linked to the health of the housing and construction markets.
How the company got here
Mohawk Industries began as a carpet mill in 1878, founded by the Shuttleworth brothers in Amsterdam, New York. For much of its history, the company focused on woven carpets and rugs. A major shift occurred in 1992 when the company went public, raising money that fueled a period of rapid growth through buying other companies. This strategy transformed Mohawk from an American carpet maker into the world's largest flooring company, expanding into tile, laminate, vinyl, and wood flooring through key acquisitions like Dal-Tile (2002), Unilin (2005), and Marazzi (2013).
What it actually does
Mohawk is a global company that makes a wide variety of flooring and surface products for homes, businesses, and new construction projects. You would encounter their products when shopping for carpet, rugs, ceramic or porcelain tile for your floor or walls, and even stone or quartz countertops. They also manufacture popular flooring types like laminate, wood, and luxury vinyl tile (LVT). Beyond just flooring, in some regions, the company also produces other building materials like insulation and panels for construction.
Global Ceramic
This is the company's largest business segment, making it the biggest manufacturer of ceramic tile in the world. This division produces and sells ceramic, porcelain, and natural stone tiles that you would see on floors and walls, as well as quartz and porcelain slab countertops. Their products are sold through various channels, including company-owned stores, home centers, and independent retailers to both residential and commercial customers. This segment represents the largest slice of the company's business, accounting for about 39% of its total revenue.
Flooring North America
This part of the business focuses on the North American market and includes the company's original product: carpet. It sells a wide range of flooring, including broadloom carpet, rugs, laminate, wood, and various types of vinyl flooring. Customers for these products range from individual homeowners shopping at retail stores and home centers to builders and commercial contractors. This segment is a significant part of the company, making up about 35% of its total sales.
Flooring Rest of the World
This segment handles flooring sales outside of North America, with a strong presence in Europe, Australia, and New Zealand. It sells many of the same types of flooring as the North American division, such as laminate, vinyl, carpet, and wood. Uniquely, this division also produces and sells other building products in Europe, including insulation, roofing panels, and boards used for furniture and construction. This international business is a substantial contributor, representing about 26% of the company's overall revenue.
What management is betting on now
The company is focused on navigating the ups and downs of the housing market by creating innovative and appealing products to encourage homeowners to upgrade their floors. They are also concentrating on growing their sales of hard-surface flooring like tile, laminate, and vinyl, which have become more popular than traditional carpet. Management is also investing in sustainability, aiming to reduce waste and use more recycled materials in their products. By improving efficiency in their factories and managing costs carefully, they aim to be well-positioned for growth when the housing and remodeling markets improve.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$236.20M
FY2025 Q1
$-85.40M
FY2025 Q2
$126.10M
FY2025 Q3
$310.30M
FY2025 Q4
$265.20M
FY2026 Q2
$7.80M
FY2026 Q3
$228.20M
Revenue
$2.99B
Net income
$196.10M
Diluted EPS
3.22
Operating cash flow
$316.50M
Free cash flow
$228.20M
Fetching…
Sources
Revenue
$2.73B
Net income
$117.10M
Diluted EPS
1.90
Operating cash flow
$110.10M
Free cash flow
$7.80M
Fetching…
Sources
Revenue
$2.70B
Net income
$42.00M
Diluted EPS
0.69
Operating cash flow
$459.60M
Free cash flow
$265.20M
Fetching…
Sources
Revenue
$2.76B
Net income
$108.80M
Diluted EPS
1.75
Operating cash flow
$386.60M
Free cash flow
$310.30M
Fetching…
Sources
Revenue
$2.80B
Net income
$146.50M
Diluted EPS
2.34
Operating cash flow
$206.30M
Free cash flow
$126.10M
Fetching…
Sources
Revenue
$2.53B
Net income
$72.60M
Diluted EPS
1.15
Operating cash flow
$3.70M
Free cash flow
$-85.40M
Fetching…
Sources
Revenue
$2.64B
Net income
$93.30M
Diluted EPS
1.49
Operating cash flow
$397.00M
Free cash flow
$236.20M
Fetching…
Sources
Is it cheap or expensive?
Fair value $134.99 vs current price $128.01
Wall Street consensus is the average analyst price target: $135.79 (0.6% higher than our fair-value estimate).
Our most-likely fair value is $134.99 a share — about 5.5% away from today's price of $128.01, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net debt $1.5B. Interest coverage 28.6x.
Net debt
$1.51B
Interest coverage
28.63x
Mohawk Industries, Inc.'s profit covers its interest bill about 28.6 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
MHK
BASELINE
Mohawk Industries, Inc.
Total debt $2.36B Interest coverage 28.63x This is the baseline the peer rows are being compared against.
Total debt $2.01B Interest coverage 23.97x -16% vs MHK Carries about 1.2x less debt cushion than MHK.
Total debt $580.00M Interest coverage 9.67x -66% vs MHK Carries about 3.0x less debt cushion than MHK.
Total debt $2.80B Interest coverage 5.39x -81% vs MHK Carries about 5.3x less debt cushion than MHK.
Total debt $3.49B Interest coverage 12.41x -57% vs MHK Carries about 2.3x less debt cushion than MHK.
What you should know
The case for and against MHK
3 Rewards
0 Risks
Rewards
-
Revenue grew 3.6% last year.
-
Free cash flow was positive in 10/10 years.
-
Trades at 17.0x P/E vs peer median 22.3x (24.0% cheaper).
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
16.98x
Forward P/E
12.73x
P/B
0.91x
P/S
0.78x
EV/EBITDA
6.10x
PEG ratio
0.64x
Profitability
How much profit each dollar creates
Gross margin
25.6%
Operating margin
9.8%
Net margin
4.2%
ROE
5.5%
ROA
3.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.28x
Current ratio
1.92x
Quick ratio
0.96x
Total debt
$2.36B
Total cash
$849.60M
Growth
How the business has been compounding
Revenue TTM
$11.18B
Revenue 5Y CAGR
-0.9%
EPS TTM
7.54
EPS 5Y CAGR
147.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.27B
Free CF TTM
$616.20M
FCF margin
5.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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