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Mohawk Industries: Remain Hold As Q2 Margin Is Not Improving As Much I Expected

Jay Capital profile picture
Jay Capital


  • Mohawk Industries' Q2 2023 adjusted EPS exceeded estimates.
  • Weak EBIT margins across all business segments raise concerns.
  • Management is implementing cost-cutting measures and preparing for promotional activities to boost revenue, but the third quarter is expected to be slow.

interior material board containing multi pattern of wooden laminateds, grainy quartz stones, grey interior fabric wallpaper, green marble, artificial stone samples. close up or macro view. mood board.

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Following my previous coverage on Mohawk Industries (NYSE:MHK), which I recommended a hold rating as I wanted to monitor how MHK would improve its margin in 2Q23, this post is to provide an

This article was written by

Jay Capital profile picture
I take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to companies with steady long-term growth, no cyclicality, and a robust balance sheet.Nevertheless, investing in successful company is risky because one may end up paying too much (this is where valuation matters). I firmly believe this, yet there are situations where the development runway is so vast that price matters much less in the immediate future.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (4)

jacks1234 profile picture
@Jay Capital you still recommending a hold on this? shares down to 85! will the slow recovery still happen?
pat45 profile picture
@jacks1234 I am nibbling MHK today. Great products and earnings
OverTheHorizon profile picture
Carpet? Who’s buying carpet? Not homebuilders—“sales” are not even built and 30% won’t be as “buyers” cancel w 7%+ interest rates. Office builders? Overbuilt apartment market? Seniors whose homes are paid off? (Ps no dividend).
Stock is an absolute dog. You can buy MAS, or OC, or anything for that matter and beat this.
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