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Mohawk Industries MHK

Mohawk Industries scores weak on business quality (4.2 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$118.07Oct 9, 2026
Business qualityWeak
Next earningsOct 29, 2026
Insiders, 90 daysSelling

Why it matters

  1. What Mohawk Industries does

    Mohawk Industries designs and manufactures flooring products, including carpets, ceramic tiles, and laminate, selling to residential and commercial buyers worldwide through distributors and retailers. The company is navigating a prolonged housing slowdown by optimizing its manufacturing footprint and restructuring high-cost operations.

  2. What it does best

    Mohawk dominates global flooring scale through massive vertically integrated production facilities. Its gross margin sits at 25.6%, trailing peer SGI at 46.1%, but its sheer distribution reach across ceramic and carpet creates deep regional supply chain dominance.

  3. The main risk

    Slumping housing activity suppresses renovation demand, dragging revenue down to $11.2 billion and stalling top-line momentum across core product lines.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin sits at 6.9% and ROE is a modest 5.5%, leaving profitability constrained by heavy fixed asset intensity in a depressed demand environment.

MoatFair

A bottom-quartile gross margin rank of 27th percentile reflects intense commodity competition in flooring, leaving little room for durable pricing power against low-cost rivals.

GrowthSlow

Revenue is contracting at -0.5% annually, continuing a multi-year slide from $11.7 billion in 2022 as broader construction markets remain stuck in a holding pattern.

Financial healthStrong

Debt-to-equity of 0.24 and interest coverage of 57x mean debt costs are a non-issue. Free cash flow reached $812 million, keeping the balance sheet well-anchored as earnings soften.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

3 sold $21.3M outside pre-planned sales.

Our sealed record on MHK

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is MHK a good business?

Mohawk Industries scores weak on the Cluenex quality check (4.2 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health strong.

Are insiders buying MHK?

In the last 90 days of SEC Form 4 filings: 3 sold $21.3M outside pre-planned sales.

When does MHK report earnings?

Oct 29, 2026.

For members

See MHK today

  • Today's verdict on MHK, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Mohawk Industries (MHK)”, https://cluenex.com/stocks/mhk/, data as of Oct 10, 2026.