MHK
Mohawk Industries Inc.
Finance/Real Estate
03/07/2013
Presented
| Date | 03/01/2013 |
| Price | $106.02 |
| Market Cap | $7.35B |
| Ent Value | $8.26B |
| P/E Ratio | 24.83x |
| Book Value | $60.59 |
| Div Yield | N/A |
| Shares O/S | 69.33M |
| Ave Daily Vol | 610,000 |
| Short Int | 1.24% |
Current
| Price | $159.85 |
| Market Cap | $10.09B |
| Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial applications for remodeling and new constructions worldwide. It operates in three segments: Carpet, Ceramic, and Laminate and Wood. The Carpet segment offers carpet and rug product lines in a range of colors, textures, and patterns for residential and commercial applications; and markets and distributes ceramic tiles, laminate, hardwood, resilient floor coverings, carpet pads, and flooring accessories. This segment markets and distributes its flooring products under the Aladdin, Bigelow, Durkan, Horizon, Karastan, Lees, Mohawk, Mohawk ColorCenters, Mohawk Floorscapes, Mohawk Home, Portico, and SmartStrand brands. The Ceramic segment provides a range of ceramic tile, porcelain tile, and natural stone products; and sources, markets, and distributes other tile related products. This segment markets and distributes its products under the American Olean, Daltile, Kerama Marazzi, Marazzi, and Ragno brands. The Laminate and Wood segment offers laminate and hardwood flooring; and produces roofing elements, insulation boards, medium-density fiberboards, chipboards, and other wood products, as well as licenses its UNICLIC and Pergo laminate flooring to floor manufacturers and distributors. This segment markets and distributes its flooring products under the Columbia Flooring, Century Flooring, Mohawk, Pergo, Quick-Step, and Unilin brands. The company sells its products through independent and individual floor covering retailers, home centers, mass merchandisers, department stores, shop at home, buying groups, commercial dealers and end users, company-operated service centers and distribution centers, independent distributors, home center retailers, ceramic specialists, and retailers, as well as through private labeling programs. Mohawk Industries, Inc. was founded in 1988 and is headquartered in Calhoun, Georgia. |
Please note, this idea was updated on 4/18/2013 and can be read here: LONG — Mohawk Industries Inc. (MHK) (Update).
Highlights
MHK is one of two dominant players in the US flooring industry. Despite the overall trend in the industry away from soft flooring (carpet is MHK’s largest business line) and toward laminate/ hardwood, the presenter is bullish on MHK. The management team has been able to diversify into tile and laminate through recent acquisitions, and has proven it can generate free cash flow as good as or better than net income. The presenter’s expectations for 2014 EPS are ahead of the Street by 20%+ due to a number of factors, including:
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