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CHDN vs MHK

CHDN
Churchill Downs Incorporated
NEUTRAL
Price
$90.84
Market Cap
$6.33B
Sector
Consumer Cyclical
AI Confidence
85%
MHK
Mohawk Industries, Inc.
NEUTRAL
Price
$102.89
Market Cap
$6.3B
Sector
Consumer Cyclical
AI Confidence
80%

Valuation

P/E Ratio
CHDN
17.57
MHK
17.35
Forward P/E
CHDN
12.56
MHK
9.75
P/B Ratio
CHDN
6.26
MHK
0.76
P/S Ratio
CHDN
2.16
MHK
0.58
EV/EBITDA
CHDN
11.89
MHK
5.8

Profitability

Gross Margin
CHDN
33.58%
MHK
25.19%
Operating Margin
CHDN
18.8%
MHK
7.06%
Profit Margin
CHDN
13.09%
MHK
3.43%
ROE
CHDN
35.71%
MHK
4.66%
ROA
CHDN
6.24%
MHK
3.38%

Growth

Revenue Growth
CHDN
6.7%
MHK
2.4%
Earnings Growth
CHDN
-25.2%
MHK
-52.1%

Financial Health

Debt/Equity
CHDN
4.92
MHK
0.29
Current Ratio
CHDN
0.6
MHK
2.19
Quick Ratio
CHDN
0.42
MHK
1.02

Dividends

Dividend Yield
CHDN
0.48%
MHK
--
Payout Ratio
CHDN
8.28%
MHK
0.0%

AI Verdict

CHDN NEUTRAL

CHDN presents a stark contrast between analyst optimism and deterministic valuation metrics. While the Piotroski F-Score of 4/9 indicates stable health, the stock trades at a significant premium to its Graham Number ($41.08) and Intrinsic Value ($36.19). High leverage (Debt/Equity of 4.92) and poor liquidity (Current Ratio 0.60) are offset by an exceptional ROE of 35.71%. The primary concern is the divergence between modest revenue growth (6.7%) and a sharp decline in earnings growth (-25.2%).

Strengths
Exceptional Return on Equity (ROE) of 35.71%
Strong analyst consensus with a 'strong_buy' rating and target price of $135.58
P/E ratio (17.57) is significantly lower than the Consumer Cyclical sector average (33.44)
Risks
Severe earnings contraction (-25.2% YoY and -28.5% Q/Q)
High financial leverage with a Debt/Equity ratio of 4.92
Liquidity risk indicated by a Current Ratio of 0.60 and Quick Ratio of 0.42
MHK NEUTRAL

MHK presents a classic value trap profile: fundamentally cheap but operationally struggling. The Piotroski F-Score of 4/9 indicates stable but mediocre financial health, while the Graham Number ($134.78) suggests significant defensive undervaluation compared to the current price of $102.89. However, this is offset by a severe collapse in earnings growth (-52.10% YoY) and a bearish insider sentiment. While the balance sheet is strong with low debt, the lack of growth and negative technical trend prevent a bullish rating.

Strengths
Strong balance sheet with very low Debt/Equity (0.29)
Trading below book value (P/B 0.76) and low Price/Sales (0.58)
High liquidity with a Current Ratio of 2.19
Risks
Severe earnings contraction (-52.10% YoY and -53.40% Q/Q)
Very thin net profit margins (3.43%) leaving little room for error
Bearish insider activity, including sales by the CFO

Compare Another Pair

CHDN vs MHK: Head-to-Head Comparison

This page compares Churchill Downs Incorporated (CHDN) and Mohawk Industries, Inc. (MHK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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