MHKMohawk Industries, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (2.7×) and margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 5% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MHK?
Mohawk Industries, Inc. earns 4.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.3 points below what the capital costs: growth destroys value
- Operating margin
- 5.1%
Operating margin · Furnishings, Fixtures & Appliances median 7.8% · 12 months to Q2 2026
- Cash conversion
- 2.67×
Cash conversion · 1.85× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 6.7% |
| FY2021 | 12% |
| FY2022 | 2.1% |
| FY2023 | −2.6% |
| FY2024 | 6.4% |
| FY2025 | 4.5% |
Details›
- Gross margin12 months to Q2 2026
- 24%
- Operating margin12 months to Q2 2026
- 5.1%
- Net margin12 months to Q2 2026
- 4.2%
- Free cash flow margin
- 7.3%
- Revenue, trailing twelve months
- $11.2B
- Free cash flow, trailing twelve months
- $812M
- Net income, trailing twelve months
- $464M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Furnishings, Fixtures & Appliances
Ranks #7 of 13 by RyuScore