# Mohawk Industries (MHK.US)

Canonical: https://gigainvestors.com/s/MHK

Analysis as of: 2026-10-16T07:30:12.684Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $123.90 per share; close as of 2026-10-15.

Estimated value: low $106.65 per share, central $120.08 per share, high $137.96 per share. Buy at or below the central value $120.08 per share. Valuation as of 2026-10-16T07:30:12.684Z; scenarios are not confidence intervals.

Expected annual return: 9.8% at the stated quote. About 9.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 1

- Operating margin variation: 0.67×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.14×

- FY2018: 0.11×

- FY2019: 0.08×

- FY2020: 0.07×

- FY2021: 0.12×

- FY2022: 0.02×

- FY2023: -0.03×

- FY2024: 0.06×

- FY2025: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.4%

- ROIC, second-lowest year: 1.8%

- Typical minus recent gross margin: 2.3 pp

- Typical gross margin (annual median): 26.1%

- Recent gross margin (lower of latest and 3-year median): 23.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.5%

- ROIC including acquisitions, ten-year median: 7.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.3%

- FY2017: 13.8%

- FY2018: 11.2%

- FY2019: 9.9%

- FY2020: 7.4%

- FY2021: 13.5%

- FY2022: 1.8%

- FY2023: -2.5%

- FY2024: 8.9%

- FY2025: 4.6%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.28×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.9B

- Net income, five-year total: $1.5B

- Return on incremental invested capital: -16.3%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 2.8 pp

- Working capital / revenue, final three-year average: 31.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.58×

- FY2023: 0.96×

- FY2024: 1.36×

- FY2025: 1.57×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 13.8% vs 4.6%

- Per-share earnings: 12.48 to 5.93 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.7%

- Ordinary dilution, 5-year annual growth: -2.7%

- Market cap gain: -$8.1B

- Cumulative retained earnings: $2.5B

- Diluted shares, 10-year annual growth: -1.7%

- Diluted shares, 5-year annual growth: -2.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -8.9%

- Per-share value change: -$6.55

- Per-share value, starting three-year median: $12.48

- Per-share value, ending three-year median: $5.93

- Buybacks concentrated in cheaper years (correlation): 0.28

- Average buyback yield: 2.4%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $1.8B

- Cumulative net income, 10 years: $5.5B

- ROIC, first three-year median: 13.8%

- ROIC, last three-year median: 4.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $12.48

- FY2017: $12.98

- FY2018: $11.52

- FY2019: $10.30

- FY2020: $7.22

- FY2021: $14.94

- FY2022: $0.39

- FY2023: -$6.90

- FY2024: $8.14

- FY2025: $5.93

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -5.0%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 2.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.86×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.24×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.9%

- FY2017: -1.8%

- FY2018: -2.4%

- FY2019: -5.0%

- FY2020: -8.8%

- FY2021: -1.9%

- FY2022: -4.6%

- FY2023: -13.0%

- FY2024: -4.8%

- FY2025: -5.0%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Harry Burn](https://gigainvestors.com/SSHFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 32% since Dec 2021 · "Mohawk Industries (MHK) Falls as Housing Market Weakness Pressures Demand" (finance.yahoo.com, Mar 2026) · sales -0.5%

Story as of 2026-10-16T09:59:09.629Z; price observation 2026-10-15.

Price needs cash profits to grow 1.3% a year for ten years

- 2025-05-16: MHK Q1 Earnings Call: Tariffs, Cost Actions, and Demand Weakness Shape Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/mhk-q1-earnings-call-tariffs-114548969.html))

- 2025-07-26: Mohawk Industries Q2 2025 slides: Flat sales amid margin pressure, announces $500M buyback ([investing.com](https://www.investing.com/news/company-news/mohawk-industries-q2-2025-slides-flat-sales-amid-margin-pressure-announces-500m-buyback-93CH-4154051))

- 2025-10-24: MHK Q3 Deep Dive: Tariff Pressures, Cost Controls, and Margin Headwinds Dominate Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/mhk-q3-deep-dive-tariff-211049466.html))

- 2026-02-13: MHK Q4 Deep Dive: Pricing Actions and Productivity Initiatives Counter Industry Pressures ([finance.yahoo.com](https://finance.yahoo.com/news/mhk-q4-deep-dive-pricing-172049416.html))

- 2026-05-01: Mohawk misses top-line and bottom-line estimates; gives Q2 EPS outlook ([seekingalpha.com](https://seekingalpha.com/news/4583605-mohawk-misses-top-line-and-bottom-line-estimates-gives-q2-eps-outlook?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales -0.5%; source https://www.sec.gov/Archives/edgar/data/851968/000085196826000011/mhk-20251231.htm; observed 2026-02-24.

- FY2016: $9.0B 

- FY2017: $9.5B 

- FY2018: $10.0B 

- FY2019: $10.0B 

- FY2020: $9.6B 

- FY2021: $11B 

- FY2022: $12B 

- FY2023: $11B 

- FY2024: $11B 

- FY2025: $11B 

### Gross margin · FY2025

gross margin 23.9%; source https://www.sec.gov/Archives/edgar/data/851968/000085196826000011/mhk-20251231.htm; observed 2026-02-24.

- FY2016: 31.4% 

- FY2017: 31.6% 

- FY2018: 28.4% 

- FY2019: 26.8% 

- FY2020: 25.4% 

- FY2021: 29.2% 

- FY2022: 25.1% 

- FY2023: 24.3% 

- FY2024: 24.8% 

- FY2025: 23.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in furnishings, fixtures & appliances; annual sales are USD 10.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/851968/000085196826000011/mhk-20251231.htm (filed 2026-02-24); FY2025: revenue 10785400000; grossProfit 2574700000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MHK.US: 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. 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.

### Why customers stay

Margins ranged from 23.9% to 24.8% during 2023–25; it earns 9.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 24.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 24.8%.

- Source: https://www.sec.gov/Archives/edgar/data/851968/000085196826000011/mhk-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 23.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,0.16340630860979757],[2017,0.13783329624835824],[2018,0.11213379820533537],[2019,0.09933309521319166],[2020,0.0737566449548235],[2021,0.13457293225298958],[2022,0.018378713344175537],[2023,-0.025345660873733376],[2024,0.0885763758843401],[2025,0.04589778547419673]]; median 0.09395473554876588. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 1.2% of cash earnings; paid dividends in 1 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 262658000; upkeep 409467000; cash acquisitions 0; owner earnings 930362000. Growth capex plus acquisitions / owner earnings = 0.28231806544119387.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 205443483.79436338; upkeep 700554516.2056366; cash acquisitions 250799000; owner earnings 717755483.7943634. Growth capex plus acquisitions / owner earnings = 0.6356516865360191.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 200210462.2637999; upkeep 593899537.7362001; cash acquisitions 568960000; owner earnings 789569462.2637999. Growth capex plus acquisitions / owner earnings = 0.9741644010122765.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 545462000; cash acquisitions 81082000; owner earnings 775201000. Growth capex plus acquisitions / owner earnings = 0.10459480831423076.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 425557000; cash acquisitions 0; owner earnings 697545000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 84409000; upkeep 591711000; cash acquisitions 123969000; owner earnings 1033159000. Growth capex plus acquisitions / owner earnings = 0.20169015611343463.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 0; upkeep 580742000; cash acquisitions 209600000; owner earnings 40005000. Growth capex plus acquisitions / owner earnings = 5.239345081864767.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 454400000; cash acquisitions 0; owner earnings 701600000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/851968/000085196826000011/mhk-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 440000000; cash acquisitions 6900000; owner earnings 582500000. Growth capex plus acquisitions / owner earnings = 0.01184549356223176.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,1000],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/851968/000085196826000011/mhk-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 149800000 USD.

### Are managers owners

Insiders own 16.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MHK.US SharesStats.PercentInsiders = 16.21 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.3% yearly over ten years; actual growth was 2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.006028475149800205. Price 123.9; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 7.636722832887814 → FY2025 9.334935897435898. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $184.30 per share

- 2016-11: $197.44 per share

- 2016-12: $199.68 per share

- 2017-01: $215.84 per share

- 2017-02: $226.36 per share

- 2017-03: $229.49 per share

- 2017-04: $234.79 per share

- 2017-05: $239.30 per share

- 2017-06: $241.69 per share

- 2017-07: $248.99 per share

- 2017-08: $253.12 per share

- 2017-09: $247.51 per share

- 2017-10: $261.76 per share

- 2017-11: $282.61 per share

- 2017-12: $275.90 per share

- 2018-01: $281.06 per share

- 2018-02: $239.88 per share

- 2018-03: $232.22 per share

- 2018-04: $209.88 per share

- 2018-05: $204.04 per share

- 2018-06: $214.27 per share

- 2018-07: $188.36 per share

- 2018-08: $191.59 per share

- 2018-09: $175.35 per share

- 2018-10: $124.73 per share

- 2018-11: $128.06 per share

- 2018-12: $116.96 per share

- 2019-01: $128.79 per share

- 2019-02: $136.12 per share

- 2019-03: $126.15 per share

- 2019-04: $136.25 per share

- 2019-05: $135.55 per share

- 2019-06: $147.47 per share

- 2019-07: $124.69 per share

- 2019-08: $118.89 per share

- 2019-09: $124.07 per share

- 2019-10: $143.38 per share

- 2019-11: $139.37 per share

- 2019-12: $136.38 per share

- 2020-01: $131.68 per share

- 2020-02: $121.15 per share

- 2020-03: $76.24 per share

- 2020-04: $87.72 per share

- 2020-05: $93.20 per share

- 2020-06: $101.76 per share

- 2020-07: $79.85 per share

- 2020-08: $92.33 per share

- 2020-09: $97.59 per share

- 2020-10: $103.19 per share

- 2020-11: $125.83 per share

- 2020-12: $140.95 per share

- 2021-01: $143.60 per share

- 2021-02: $174.99 per share

- 2021-03: $192.31 per share

- 2021-04: $205.50 per share

- 2021-05: $210.68 per share

- 2021-06: $192.19 per share

- 2021-07: $194.90 per share

- 2021-08: $197.76 per share

- 2021-09: $177.40 per share

- 2021-10: $177.21 per share

- 2021-11: $167.87 per share

- 2021-12: $182.18 per share

- 2022-01: $157.87 per share

- 2022-02: $140.78 per share

- 2022-03: $124.20 per share

- 2022-04: $141.06 per share

- 2022-05: $141.46 per share

- 2022-06: $124.09 per share

- 2022-07: $128.48 per share

- 2022-08: $110.36 per share

- 2022-09: $91.19 per share

- 2022-10: $94.75 per share

- 2022-11: $101.33 per share

- 2022-12: $102.22 per share

- 2023-01: $120.06 per share

- 2023-02: $102.85 per share

- 2023-03: $100.22 per share

- 2023-04: $105.90 per share

- 2023-05: $92.04 per share

- 2023-06: $103.16 per share

- 2023-07: $106.34 per share

- 2023-08: $101.39 per share

- 2023-09: $85.81 per share

- 2023-10: $80.38 per share

- 2023-11: $88.31 per share

- 2023-12: $103.50 per share

- 2024-01: $104.25 per share

- 2024-02: $118.62 per share

- 2024-03: $130.89 per share

- 2024-04: $115.32 per share

- 2024-05: $121.93 per share

- 2024-06: $113.59 per share

- 2024-07: $161.07 per share

- 2024-08: $155.14 per share

- 2024-09: $160.68 per share

- 2024-10: $134.27 per share

- 2024-11: $138.83 per share

- 2024-12: $119.13 per share

- 2025-01: $122.30 per share

- 2025-02: $117.59 per share

- 2025-03: $114.18 per share

- 2025-04: $106.35 per share

- 2025-05: $100.61 per share

- 2025-06: $104.84 per share

- 2025-07: $114.51 per share

- 2025-08: $132.69 per share

- 2025-09: $128.92 per share

- 2025-10: $113.64 per share

- 2025-11: $115.90 per share

- 2025-12: $109.30 per share

- 2026-01: $118.38 per share

- 2026-02: $125.27 per share

- 2026-03: $98.46 per share

- 2026-04: $105.56 per share

- 2026-05: $107.42 per share

- 2026-06: $121.33 per share

- 2026-07: $123.10 per share

- 2026-08: $128.25 per share

- 2026-09: $124.72 per share

- 2026-10: $123.90 per share

## Annual estimated value (USD per share)

- FY2016: low $78.40 per share, central $89.65 per share, high $104.14 per share

- FY2017: low $97.11 per share, central $110.50 per share, high $128.32 per share

- FY2018: low $116.13 per share, central $139.41 per share, high $162.37 per share

- FY2019: low $129.79 per share, central $164.31 per share, high $191.89 per share

- FY2020: low $142.24 per share, central $176.18 per share, high $203.08 per share

- FY2021: low $161.66 per share, central $208.61 per share, high $243.05 per share

- FY2022: low $162.36 per share, central $183.81 per share, high $212.37 per share

- FY2023: low $146.12 per share, central $165.36 per share, high $190.96 per share

- FY2024: low $127.65 per share, central $144.27 per share, high $166.41 per share

- FY2025: low $112.30 per share, central $126.36 per share, high $145.09 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/851968/000085196826000011/mhk-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.