MHK

Mohawk Industries Inc

Industrial/Transportation


Presented:08/15/2018
Price:$185.08
Cap:$13.81B
Current Price:$159.85
Cap:$10.09B

Presented

Date08/15/2018
Price$185.08
Market Cap$13.81B
Ent Value$18.61B
P/E Ratio15.15x
Book Value$98.73
Div Yield0%
Shares O/S74.60M
Ave Daily Vol1,071,484
Short Int4.64%

Current

Price$159.85
Market Cap$10.09B
Mohawk Industries, Inc. engages in the manufacture, design, and distribution of residential and commercial flooring products. It operates through the following segments: Global Ceramic, Flooring North America (NA), and Flooring Rest of the World (ROW). The Global Ceramic segment comprises ceramic, porcelain, and natural stone tile products used for wall and floor applications. The Flooring NA segment includes floor covering product lines, in a broad range of colors, textures, and patterns. The Flooring ROW segment consists of laminate, hardwood flooring, and vinyl flooring products, roofing elements, insulation boards, medium-density fiberboard, and chipboards. The company was founded on December 22, 1988 and is headquartered in Calhoun, GA.

Publicly traded companies mentioned herein: Berkshire Hathaway Inc (BRK/A), Mohawk Industries Inc (MHK)

Highlights

The presenter is long shares of MHK, having originally established a position in Q2 2014 with an average cost basis of $130. He feels that MHK’s valuation “got ahead of itself” in 2017 and bulls misunderstood the margin expansion story. He thinks the current $180 valuation is close to fair value, but sees 20% - 30% upside moving forward on a “CAGR returns” calculation.

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Idea Discussion

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