MHK - Embedded Expectations Analysis - 2019 10 14
Mohawk Industries, Inc. (MHK:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) Earnings, with an 18.3x Uniform P/E, suggesting somewhat bearish expectations for the firm. Moreover, management may be concerned about operating income, their products, and growth.Specifically, management may be concerned about the sustainability of recent performance levels, and they may be concerned about the sustainability of growth in the Mexican ceramic industry. Furthermore, they may lack confidence in their ability to drive differentiation through their LVT process, expand their customer base, and improve sales. Additionally, they may be concerned about the value of their recent acquisitions, and they may lack confidence in their ability to sustain recent operating income improvements. Finally, they may be concerned about ongoing restructuring expenses, and they may lack confidence in their ability to drive margin improvements through streamlining manufacturing.
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.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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