Quality Investor

Mohawk Industries, Inc.

Rank #373Capital Return

MHK · NYSE · Consumer Cyclical

Mohawk Industries, Inc. (MHK) — Rank #373 by gross profitability (GP/assets 0.19) · ROE 4.3% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000851968 · all metrics point-in-time as of the filing date.

About

Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial remodeling, and new construction channels in the United States, Europe, Latin America, and internationally.

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It operates through three segments: Global Ceramic, Flooring North America, and Flooring Rest of the World. The company provides ceramic, porcelain, and natural stone tiles products for floor and wall applications; natural stones, porcelain slabs, and quartz countertops, as well as installation materials; floor covering products comprising broadloom carpets, carpet tiles, rugs and mats, carpet pads, laminates, medium-density fiberboards, wood floorings, vinyl tiles, hybrid flooring, and sheet vinyl; and roofing panels, insulation boards, mezzanine flooring products, medium-density fiberboard, decorative panels, and chipboards. It also licenses its intellectual property to flooring manufacturers. The company sells its products under the American Olean, Daltile, Decortiles, Durkan, Eliane, Elizabeth, Feltex, Godfrey Hirst, IVC Home, Karastan, Kerama Marazzi, Marazzi, Moduleo, Mohawk, Pergo, Quick-Step, Unilin, Vitromex, GH Commercial, Hycraft, Lentex Flooring, Leoline, Redbook, EmilGroup, KAI, Ragno, Aladdin Commercial, Durkan, Foss, IVC Resilient Design, Mohawk Group, Mohawk Home, and Portico. It offers its products to home centers, company-owned service centers and stores, floor covering retailers, ceramic tile specialists, e-commerce retailers, residential builders, independent distributors, commercial contractors, and commercial end users.

The company was incorporated in 1988 and is headquartered in Calhoun, Georgia.

Industry
Furnishings, Fixtures & Appliances
Sector
Consumer Cyclical
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

MHK-34.7% · -8.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$8.69B

P/E (annual)

21.6

P/S (annual)

0.8

P/B

1.0

P/OCF (annual)

8.2

Shareholder Yield

13.7%

Employees

40,500

Industry

Furnishings, Fixtures & Appliances

Exchange

NYSE

Signal Flags

2 green1 yellow1 red
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why
Revenue declining YoYRevenue contracted year over year

Quality Profile

Profitability

GP / assets
0.19
Return on equity
4.3%
Gross margin trend
N/A

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.62
Current ratio
1.92×
Net cash
-$1.07B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.3%

Growth

1/2 pass
Revenue growth
-10211.9%
Piotroski F-Score
N/A
Share dilution
-13.7%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

1.8%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -13.7% — per-share value needs a total required return of -11.9% once share-count change is priced in.

vs. own 6-year median revenue growth: 13.3%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-2.2%

r = 10% (base)

1.8%

r = 12%

5.2%

Net debt / market cap: 13.3%

Base FCF: $616.2M3Y mean FCF: $139.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

9.3xCheap
9.3xmed 18.6x56.2x

P / S

Price / revenue per share

0.9xCheap
0.9xmed 1.0x1.4x

P / B

Price / book value per share

1.1xCheap
1.1xmed 1.6x3.1x

P / GP

Price / gross profit per share

2.9xCheap
2.9xmed 4.5x6.9x

P / FCF

Price / free cash flow per share

15.2xFair
9.7xmed 26.1x384.0x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.19

Primary signal (Novy-Marx).

Return on equity

4.3%

Gross margin

23.9%

Revenue growth (YoY)

-10211.9%

Gross margin improving

Margin trend vs prior year.

N/A

Operating Leverage

2013201420202021
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

2.5%

Earnings CAGR (3Y)

144.8%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.62

Current ratio

1.92×

Quick ratio

0.96×

Net cash

-$1.07B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$616.20M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.67

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.3%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20112021
Op. Leverage
Value
Capital Return