📊 MHK Key Takeaways
Is MHK a Good Investment? Thesis Analysis
Mohawk demonstrates solid financial health with strong liquidity (2.19x current ratio), excellent interest coverage (32.9x), and healthy free cash flow generation ($616.2M), but faces headwinds from flat revenue (-0.5% YoY) and declining EPS (-26.7% YoY) despite stable net income, suggesting margin compression and share dilution concerns. The company's modest profitability margins (4.5% operating, 3.4% net) and weak ROE/ROA (4.4%/2.7%) indicate capital is generating below-average returns in a cyclical industry facing potential softness.
Why Buy MHK? Key Strengths
- Exceptional liquidity position with 2.19x current ratio and 1.21x quick ratio provides financial flexibility
- Strong interest coverage ratio of 32.9x and conservative leverage (0.24x debt/equity) indicate minimal financial distress risk
- Solid free cash flow generation of $616.2M (5.7% FCF margin) supports dividends and debt reduction despite modest profitability
MHK Investment Risks to Consider
- Revenue stagnation (-0.5% YoY) in a mature industry suggests market challenges and weak pricing power
- Significant EPS decline (-26.7% YoY) despite flat net income indicates share dilution and potential buyback limitations
- Weak return on equity (4.4%) and return on assets (2.7%) suggest inefficient capital deployment and low incremental returns on reinvestment
Key Metrics to Watch
- Revenue growth acceleration - critical for fundamental improvement in cyclical flooring sector
- Operating margin expansion - currently depressed at 4.5% with room for improvement if volumes recover
- Free cash flow sustainability - monitor capex levels and working capital efficiency as key indicators of cash generation quality
MHK Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.19x current ratio provides a solid financial cushion.
MHK Profitability Ratios
MHK vs Default Sector
How MOHAWK INDUSTRIES INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MHK Overvalued or Undervalued?
Based on fundamental analysis, MOHAWK INDUSTRIES INC has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MHK Balance Sheet & Liquidity
MHK 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: MOHAWK INDUSTRIES INC's revenue has remained relatively flat over the 5-year period, with a 1% decline. The most recent EPS of $-7.05 indicates the company is currently unprofitable.
MHK Growth Metrics (YoY)
MHK Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.7B | $108.8M | $1.75 |
| Q2 2025 | $2.8B | $146.5M | $2.34 |
| Q1 2025 | $2.5B | $72.6M | $1.15 |
| Q3 2024 | $2.7B | $162.0M | $2.55 |
| Q2 2024 | $2.8B | $101.2M | $1.58 |
| Q1 2024 | $2.7B | $80.2M | $1.26 |
| Q3 2023 | $2.8B | -$8.2M | $-0.13 |
| Q2 2023 | $3.0B | $101.2M | $1.58 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MHK Capital Allocation
MHK SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for MOHAWK INDUSTRIES INC (CIK: 0000851968)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MHK
What is the AI rating for MHK?
MOHAWK INDUSTRIES INC (MHK) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MHK's key strengths?
Claude: Exceptional liquidity position with 2.19x current ratio and 1.21x quick ratio provides financial flexibility. Strong interest coverage ratio of 32.9x and conservative leverage (0.24x debt/equity) indicate minimal financial distress risk.
What are the risks of investing in MHK?
Claude: Revenue stagnation (-0.5% YoY) in a mature industry suggests market challenges and weak pricing power. Significant EPS decline (-26.7% YoY) despite flat net income indicates share dilution and potential buyback limitations.
What is MHK's revenue and growth?
MOHAWK INDUSTRIES INC reported revenue of $10.8B.
Does MHK pay dividends?
MOHAWK INDUSTRIES INC does not currently pay dividends.
Where can I find MHK SEC filings?
Official SEC filings for MOHAWK INDUSTRIES INC (CIK: 0000851968) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MHK's EPS?
MOHAWK INDUSTRIES INC has a diluted EPS of $5.93.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MHK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, MOHAWK INDUSTRIES INC has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MHK stock overvalued or undervalued?
Valuation metrics for MHK: ROE of 4.4% (sector avg: 15%), net margin of 3.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy MHK stock in 2026?
Our dual AI analysis gives MOHAWK INDUSTRIES INC a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MHK's free cash flow?
MOHAWK INDUSTRIES INC's operating cash flow is $1.1B, with capital expenditures of $440.0M. FCF margin is 5.7%.
How does MHK compare to other Default stocks?
Vs Default sector averages: Net margin 3.4% (avg: 12%), ROE 4.4% (avg: 15%), current ratio 2.19 (avg: 1.8).