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Mohawk Industries Forward Rate of Return (Yacktman) %

: 9.40% (As of Jun. 2022)
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Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Mohawk Industries's forward rate of return for was 9.40%.

The historical rank and industry rank for Mohawk Industries's Forward Rate of Return (Yacktman) % or its related term are showing as below:

MHK' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -1.09   Med: 13.15   Max: 22.7
Current: 9.28

During the past 13 years, Mohawk Industries's highest Forward Rate of Return was 22.70. The lowest was -1.09. And the median was 13.15.

MHK's Forward Rate of Return (Yacktman) % is ranked worse than
52.25% of 289 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 10.02 vs MHK: 9.28

Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Mohawk Industries Forward Rate of Return (Yacktman) % Historical Data

The historical data trend for Mohawk Industries's Forward Rate of Return (Yacktman) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Mohawk Industries Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Forward Rate of Return (Yacktman) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.74 20.51 12.66 2.89 3.75

Mohawk Industries Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Forward Rate of Return (Yacktman) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.89 2.87 3.75 7.53 9.40

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, Mohawk Industries's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Mohawk Industries Forward Rate of Return (Yacktman) % Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Mohawk Industries's Forward Rate of Return (Yacktman) % distribution charts can be found below:

* The bar in red indicates where Mohawk Industries's Forward Rate of Return (Yacktman) % falls into.



Mohawk Industries Forward Rate of Return (Yacktman) % Calculation

Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

Mohawk Industries's Forward Rate of Return of Jun. 2022 is

Forward Rate of Return=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=9.20666667/124.09+0.0198
=9.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Mohawk Industries  (NYSE:MHK) Forward Rate of Return (Yacktman) % Explanation

Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.


Be Aware

In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.


Mohawk Industries Forward Rate of Return (Yacktman) % Related Terms

Thank you for viewing the detailed overview of Mohawk Industries's Forward Rate of Return (Yacktman) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Mohawk Industries Business Description

Mohawk Industries logo
Address
160 South Industrial Boulevard, Calhoun, GA, USA, 30701
Mohawk Industries manufactures a wide range of flooring products, including carpets, rugs, ceramic tile, laminate, wood, luxury vinyl tile, and vinyl flooring. The Georgia-based company has grown from a U.S.-focused carpeting manufacturer to a leading global player in the diversified flooring market. Mohawk operates three reporting segments: global ceramic ($3.6 billion of sales in 2019), North America flooring ($3.8 billion), and rest of the world flooring ($2.5 billion). The company generates approximately 60% of its sales in the United States.
Executives
Suing Clifford Charles officer: CAO and Corporate Controller 160 SOUTH INDUSTRIAL BLVD CALHOUN GA 30701
Burris Jerry W director 5500 WAYZATA BLVD., SUITE 600 GOLDEN VALLEY MN 55416
Lee Steven Hyosig officer: CAO and Corporate Controller 160 SOUTH INDUSTRIAL BLVD CALHOUN GA 30701
Engquist John director H&E EQUIPMENT SERVICES 11100 MEAD ROAD, SUITE 200 BATON ROUGE LA 70816
Landau Glenn R director, officer: Executive Vice President C/O INTERNATIONAL PAPER COMPANY 6400 POPLAR AVENU MEMPHIS TN 38197
De Cock Paul F officer: President-Flooring NA ALPHONSE RENARDSTRAAT 41 ELSENE C9 1050
Balcaen Filip director PAULINE VAN POTTELSBERGHELAAN 10 9051 SINT-DENIJS-WESTREM GENT C9 9051
Runge William Henry Iii director 3325 PIEDMONT ROAD #3103 ATLANTA GA 30305
Patton Rodney David officer: General Counsel - VP 5855 RIVERMOND DRIVE ATLANTA GA 30328
Carson Brian officer: President-Mohawk Flooring, other: President-Mohawk Flooring 3250 TWISTED BRANCHES LANE MARIETTA GA 30068-2479
Turner John C Jr officer: President-Dal-Tile, other: President-Dal-Tile 1009 WIMBERLY COURT ALLEN TX 75013-1195
Smith- Pilkington Karen A director 343 STATE STREET ROCHESTER NY 146500211
Ill Richard C director
Brunk James director, officer: Corporate Controller and CAO 251 MISTY HILL TRAIL DALLAS GA 30132
Thiers Bernard director NESTOR DE TIERESTRAAT 128 EINE C9 9700

Mohawk Industries Headlines

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