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Mohawk
(NYSE:MHK)
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Rating:69Neutral
Price Target:
$131.00
▲(20.37% 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
Low leverage / strong balance sheet
Very low leverage (debt-to-equity ~0.09) provides durable financial flexibility: supports capex, share repurchases, and M&A without stressing liquidity. A conservatively capitalized balance sheet materially reduces refinancing and covenant risk across cycles, improving resilience.
Negative Factors
Modest, volatile margins
Persistently low single-digit margins and historical earnings variability limit return on capital and reduce cushion against cost shocks. Structural margin pressure constrains free cash flow upside and reinvestment capacity, making long-term returns sensitive to mix and productivity execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Very low leverage (debt-to-equity ~0.09) provides durable financial flexibility: supports capex, share repurchases, and M&A without stressing liquidity. A conservatively capitalized balance sheet materially reduces refinancing and covenant risk across cycles, improving resilience.
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
$6.70B
Dividend YieldN/A
Average Volume (3M)704.12K
Price to Earnings (P/E)16.5
Beta (1Y)0.97
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. Volume692,269
30 Day Avg. Volume704,117
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 Cap1.23
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit3.08
Enterprise Value/Ebitda6.95
Forecast
1Y Price Target
$118.20Price Target Upside8.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)8.59
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 30, 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
Neutral
108.83
Price Trends
106.70
Positive
107.48
Positive
112.70
Negative
Market Momentum
1.48
Positive
47.65
Neutral
17.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MHK, the sentiment is Neutral. The current price of 108.83 is below the 20-day moving average (MA) of 113.71, above the 50-day MA of 106.70, and below the 200-day MA of 112.70, indicating a neutral trend. The MACD of 1.48 indicates Positive momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 17.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $1.93B | 15.42 | 16.69% | 0.21% | 7.34% | 48.24% | |
70 Outperform | $1.56B | 15.88 | 9.83% | 2.39% | 0.83% | 4.17% | |
69 Neutral | $6.70B | 16.52 | 4.97% | ― | 2.85% | -12.89% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $2.72B | 19.71 | 11.64% | 1.49% | 4.20% | -3.21% | |
44 Neutral | $1.86B | -459.75 | -0.15% | ― | -1.11% | -101.88% | |
43 Neutral | $2.64B | 13.83 | 5.85% | 7.40% | -3.60% | 1945.71% |
* Consumer Cyclical Sector Average
MHK
Mohawk
109.97
-2.21
-1.97%
TILE
Interface
33.26
11.99
56.36%
LZB
La-Z-Boy Incorporated
39.18
1.46
3.87%
PATK
Patrick Industries
82.70
-15.61
-15.88%
WHR
Whirlpool
40.72
-62.05
-60.38%
MBC
MasterBrand Inc
9.08
-2.53
-21.79%
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.