Mohawk Industries

Mohawk made $10.8B in sales and only earned a 7.0% return on capital.

If you own MHK, housing is the number to watch.

mhk

industrials mid cap updated mar 13, 2026
$119.22
market cap ~$7B · 52-week range $96–$139
xvary composite: 51 / 100 · below average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
Mohawk makes carpet, tile, wood, and vinyl floors for homes and businesses.
how it gets paid
Last year Mohawk Industries made $10.8B in revenue. Carpet & rugs was the main engine at $4.2B, or 39% of sales.
why growth slowed
Revenue fell 0.5% last year. Still, in the december interim, mohawk benefited from $51 million in productivity and restructuring benefits, favorable product mix driven by premium collections, and lower interest.
what just happened
Mohawk reported $5.24 EPS on $8.1B revenue, with gross margin at 24.1%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
60/100 earnings predictability — reasonably predictable
13.3x trailing p/e — the market's not buying it — or you found a deal
7.0% return on capital — nothing to write home about
xvary composite: 51/100 — below average
What they do
Mohawk makes carpet, tile, wood, and vinyl floors for homes and businesses.
Mohawk is the world's leading flooring company. It has 43,300 employees, and your remodel budget still has to pass through its channels. return on capital → profit on money used → 7.0% means each $100 invested made $7 back.
industrials mid-cap flooring housing home-improvement
How they make money
$10.8B annual revenue · their business grew -0.5% last year
Carpet & rugs
$4.2B
Ceramic tile
$2.8B
Vinyl flooring
$2.1B
Laminate, wood & stone
$1.7B
The products that matter
soft-surface residential flooring
Carpet and Rugs
part of $10.8B revenue
carpet is still tied closely to housing turnover and remodeling. when existing-home activity slows, this category feels it fast.
housing-linked
ceramic and hard-surface offering
Ceramic Tile
part of $10.8B revenue
tile matters because Mohawk needs broad shelf coverage with large retail partners. category breadth helps protect shelf space even when demand gets patchy.
channel relevance
competitive hard-surface mix
Laminate, Wood, Stone and Vinyl
part of $10.8B revenue
this is where you see the trade-off. Mohawk covers the full flooring aisle, but broad exposure also means it plays in categories where pricing gets tight quickly. the 6.0% net margin is your reminder.
margin watch
Key numbers
$10.8B
annual revenue
Revenue means sales. Mohawk made $10.8B last year, so this is a huge flooring machine, not a niche brand.
$8.96
FY2025 EPS
EPS means profit per share. Mohawk earned $8.96 a share, down from $9.70 in 2024, so profit slipped 7.6%.
13.3x
trailing P/E
P/E means price divided by profit. At 13.3x, you pay $13.30 for $1 of last year's earnings.
14.0%
op margin
Operating margin means profit after running the business. At 14.0%, Mohawk keeps $14 of each $100 sold.
Financial health
B++
strength
  • balance sheet grade B++ — above average financial health
  • risk rank 3 — safer than 50% of stocks
  • price stability 45 / 100
  • long-term debt $1.7B (19% of capital)
  • net profit margin 6.5% — keeps 6 cents of every dollar in revenue
  • return on equity 7% — $0.07 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market

You invested $10,000 in MHK 3 years ago → it's now worth $11,530.

The index would have given you $14,540.

source: institutional data · total return
What just happened
beat estimates
Mohawk reported $5.24 EPS on $8.1B revenue, with gross margin at 24.1%.
The latest quarter was a big vs. prior year jump in the dataset. Revenue was $8.1B, EPS was $5.24, and gross margin held at 24.1%.
$8.1B
revenue
$5.24
eps
24.1%
gross margin
the number that mattered
The 24.1% gross margin mattered most. It shows Mohawk kept $24.10 from each $100 of sales before operating costs.
source: company earnings report, 2026

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What could go wrong

Mohawk's weak spot is not abstract. It sells into housing and remodeling, leans heavily on home centers, and only kept 6.0% of revenue as net profit last year. When demand or pricing slips, you feel it quickly.

!
high
home center concentration
65% of Mohawk's revenue runs through the home center channel. That is distribution power, but it is also concentration risk. When those partners turn cautious on orders or inventory, Mohawk feels it fast.
roughly $7B of the $10.8B revenue base is tied to that channel.
!
high
pricing pressure with thin net margins
management already flagged compressed pricing. Mohawk kept only 6.0 cents of each revenue dollar as net profit, so even small pricing misses travel straight into earnings pain.
small margin slippage matters a lot when the margin base is already thin.
med
cost savings doing too much of the work
$51M in productivity and restructuring savings helped support the quarter. That's useful. It also tells you the recovery is still being propped up by internal actions, not just healthier demand.
if savings fade before volume improves, earnings pressure stays visible.
med
cheap stock, average business economics
13.3x earnings looks cheap until you line it up against 6.0% return on capital and 7% return on equity. The stock does not need bad news to stall. It just needs returns to stay ordinary.
if returns stay stuck here, the multiple has little reason to expand.
65% of revenue — about $7B — is tied to home centers, while the company only kept 6.0% of revenue as net profit last year.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarterly report
you want sales to do better than the recent 2% growth and EPS to stop sliding from a year ago. one without the other is not enough.
margin
profit conversion
watch whether the 13.5% operating margin and 6.0% net margin stabilize. that spread tells you how much of each revenue dollar actually reaches shareholders.
risk
home center demand
65% of revenue runs through home centers. if those partners slow orders, Mohawk's volume story changes fast.
trend
institutional flow
170 buyers versus 198 sellers in 4q2025 is not panic. it is a reminder that big money has not fully bought the turnaround yet.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think the near-term setup still looks sluggish.
risk profile
average
stability score 3 — not a bunker stock, not a balance-sheet problem either.
chart momentum
top 20%
technical score 2 — the chart looks better than the operating story right now. welcome to cyclical investing.
earnings predictability
60 / 100
earnings are moderately predictable. pricing pressure and housing sensitivity still leave room for unpleasant surprises.
source: institutional data
Institutional activity

170 buyers vs. 198 sellers in 4q2025. total institutional holdings: 54.3M shares.

source: institutional data
Price targets
3-5 year target range
$88 $182
$119 current price
$135 target midpoint · +13% from current · 3-5yr high: $220 (+85% · 17% ann'l return)
source: institutional data · analyst targets

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