2024-07-23 12:34:32 ET
Summary
- Shares of Mohawk Industries have done quite well over the past year or so, but they have underperformed the broader market.
- Revenue for the company has declined, but bottom-line results are finally showing signs of improving.
- Cost-cutting initiatives have helped improve net income for the company, but revenue continues to decline, leading to a neutral stance as earnings near.
A little over a year ago, in May of 2023, I wrote an article that took a neutral stance on Mohawk Industries ( MHK ). For those not familiar with the company, it operates in the commercial and residential markets, providing products like flooring, carpets, rugs, ceramic tiles, and more. Even though I have found some companies in this market that have been appealing from a valuation perspective, this is a difficult space to be in right now. At that time, I acknowledged that financial performance for the business had been hindered because of weak market conditions. That hurt its top and bottom lines, particularly its bottom line. Shares were cheap at that moment. But they weren't cheap enough for me to think that they would outperform the broader market moving forward....
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Mohawk Industries: Still Comfortable With A 'Hold' Rating As Earnings Near