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 company was founded in 1988 and is based in Calhoun, Georgia.
MHK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Mohawk Industries Inc. To summarize, we found that Mohawk Industries Inc ranked in the 87th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1545%. The most interesting components of our discounted cash flow analysis for Mohawk Industries Inc ended up being:
Mohawk Industries Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 7.84% of tickers in our DCF set.
MHK's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 7.84% of tickers in our DCF set.
As a business, Mohawk Industries Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than just 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MHK, try TA, SGC, ODP, XPEL, and GTN.
Changes in consumer preferences can also affect profits. So can the actions of our government. ― Thomas J. Stanley, The Millionaire Next Door: The Surprising Secrets of America's Wealthy In times of turmoil, the winners who emerge are often those who adapt the best to changing times. For companies, this...
Michael A. Gayed, CFA on Seeking Alpha | September 28, 2020
NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Mohawk Industries, Inc. (NYSE: MHK). On July 25, 2019, after a series of prior negative financial revelations, the Company disclosed that sales for its Flooring NA segment were down 7% due to “lower demand” for certain products resulting in excess inventory that had impacted its sal
Mohawk Industries, Inc. (MHK) Q2 2020 Earnings Conference Call August 7, 2020 11:00 AM ET Company Participants Frank Boykin – Chief Financial Officer Jeff Lorberbaum – Chief Executive Officer Chris Wellborn – President, Chief Operating Officer and President-Global Ceramic Conference Call Participants Keith Hughes – Truist Securities Justin Speer –...
Stocks have continued to rebound from the coronavirus-driven sell-offs that rocked the market in March, and the S&P 500 index is now roughly flat on the year. FirstEnergy (NYSE: FE), Intel (NASDAQ: INTC), and Mohawk Industries (NYSE: MHK) have each sank by double digits despite the broader rally and are the S&P 500's biggest losers this month. Buying quality companies that are experiencing temporary setbacks can dramatically improve your long-term returns, but you also have to be mindful of dangers that come with this move.