Long-established in the Furnishings, Fixtures & Appliances industry, Mohawk Industries Inc (MHK, Financial) has built a stellar reputation over the years. Recently, the company experienced a daily gain of 0.34%, alongside a significant three-month change of 39.3%. Despite these gains, the latest insights from the GF Score suggest potential challenges ahead. Key metrics such as financial strength, growth, and valuation indicate that Mohawk Industries Inc may struggle to maintain its historical performance levels. This article delves into these critical factors to uncover the evolving narrative of Mohawk Industries Inc.
What Is the GF Score?
The GF Score is a comprehensive stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, value, and momentum. These aspects have been closely correlated with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. Thus, investors are advised to consider stocks with high GF Scores for potential investments. The GF Score ranges from 0 to 100, with 100 representing the highest possible score.
- Financial strength rank: 7/10
- Profitability rank: 7/10
- Growth rank: 2/10
- GF Value rank: 1/10
- Momentum rank: 10/10
Based on these metrics, GuruFocus has assigned Mohawk Industries Inc a GF Score of 66 out of 100, indicating a challenging outlook for future performance.
Understanding Mohawk Industries Inc's Business
Mohawk Industries Inc, with a market cap of $10.27 billion and annual sales of $10.86 billion, is a leading manufacturer in the flooring industry. The company's diverse product range includes carpets, rugs, ceramic tiles, laminates, wood, luxury vinyl tiles, and vinyl flooring. It operates through three main segments: Global Ceramic, Flooring North America, and Flooring Rest of the World, with the majority of its revenue generated from the Global Ceramic segment. The majority of its sales come from the United States, highlighting its strong domestic presence.
Growth Prospects
Mohawk Industries Inc's growth prospects appear limited, as reflected by its low Growth rank. Over the past five years, the company has seen a decline in its EBITDA, with a three-year growth rate of -31.7% and a five-year growth rate of -19.1%. These figures highlight significant challenges in maintaining profitability. Additionally, the company's predictability rank is only one star out of five, further complicating the forecast for consistent revenue and earnings.
Conclusion
Considering Mohawk Industries Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's challenging position for potential underperformance. Investors should weigh these factors carefully when considering this stock for their portfolios. For those seeking more robust investment opportunities, explore companies with stronger GF Scores using the GF Score Screen available to GuruFocus Premium members.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
