Report
Brian Bernard
EUR 100.00 For Business Accounts Only

Mohawk’s 1Q Sales Growth Aided by Inorganic Sources; Input Cost Inflation Pressures Margins

We’re maintaining our $200 fair value estimate for Mohawk’s shares following the firm’s first-quarter results. While the no-moat flooring manufacturer reported almost a 9% increase in revenue versus the year-ago quarter, which narrowly beat the consensus estimate, most of this increase was due to favorable foreign currency translation and acquisitions. Excluding these two inorganic revenue sources, we calculate that Mohawk generated about 2% organic revenue growth. After excluding the impact of ...
Underlying
Mohawk Industries Inc.

Mohawk Industries is a global flooring manufacturer for residential and commercial spaces around the world. The company has three segments: Global Ceramic, which designs, manufactures, sources, distributes and markets a line of ceramic, porcelain and natural stone tile products used for floor and wall applications; Flooring North America, which designs, manufactures, sources and distributes broadloom carpet, carpet tile, rugs and mats, carpet pad, laminate, medium-density fiberboard, luxury vinyl tile (LVT) and sheet vinyl; and Flooring Rest of the World, which designs, manufactures, sources and distributes laminate, LVT and sheet vinyl, wood flooring, broadloom carpet and carpet tile collections.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Brian Bernard

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