Mohawk Industries: Cheap, But Not Cheap Enough Today

Summary

  • Mohawk Industries has seen significant stock decline and operational deterioration, despite restructuring efforts, making it a 'hold' candidate for now.
  • Revenue dropped from $11.74 billion in 2022 to $10.84 billion in 2024, driven by lower legacy sales volume and pricing changes.
  • Cost-cutting initiatives have improved adjusted net income and operating cash flow, but trade wars and tariffs pose significant risks.
  • Analysts expect further revenue and earnings declines in Q1 2025; I recommend waiting for tariff resolution or fundamental improvements before upgrading.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

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One company that has not been doing well lately is Mohawk Industries (NYSE:MHK). If you're not familiar with the enterprise, it operates as a provider of flooring, carpets, rugs, ceramic tiles, and other similar offerings, for both commercial and residential customers. Back

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This article was written by

34.76K Followers

Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

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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