Mohawk Industries Intrinsic Value Calculation – MOHAWK INDUSTRIES Reports Q4 FY2022 Earnings: Total Revenue Down 82.3%, Net Income Down 4.0% Year-on-Year.
March 6, 2023
Earnings report
Mohawk Industries Intrinsic Value Calculation – Their report showed a stark decline in revenue compared to the same quarter the previous year, with total revenue dropping 82.3% to USD 33.5 million.
Additionally, net income for the quarter decreased by 4.0% to USD 2650.7 million. The results came as a surprise to investors, as it is the biggest decline seen over the last year. The decline is thought to be mainly driven by the impact of the global pandemic and its subsequent effects on consumer spending. This, in turn, negatively impacted Mohawk’s sales, leading to a decline in revenue. These figures highlight the importance for companies to accurately assess the potential risks posed by a global financial crisis and prepare accordingly. Despite the decline in revenue, Mohawk Industries ($NYSE:MHK) remained committed to their core values and customers, and their focus on financial prudence seemed to have paid off as they still booked a profit for the quarter, albeit with a decline compared to last year.
Price History
On Thursday, Mohawk Industries reported their fourth-quarter and full-year earnings for FY2022. Total revenue for the fourth quarter was down 82.3%, and net income was down 4.0% from the same period last year. Though the numbers may be disheartening, the fact that Mohawk Industries still managed to increase their share price is a testament to the resilience of the company. With the end of the pandemic in sight, it will be interesting to see how the company fares in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mohawk Industries. More…
| Total Revenues | Net Income | Net Margin |
| 11.74k | 25.25 | 3.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mohawk Industries. More…
| Operations | Investing | Financing |
| 669.15 | -556.75 | -1.23k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mohawk Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.12k | 6.1k | 123.06 |
Key Ratios Snapshot
Some of the financial key ratios for Mohawk Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.6% | 4.4% | 2.0% |
| FCF Margin | ROE | ROA |
| 5.7% | 1.9% | 1.0% |
Analysis – Mohawk Industries Intrinsic Value Calculation
At GoodWhale, we are dedicated to providing investors with the best insights into the fundamentals of MOHAWK INDUSTRIES. Our analysis of this company has determined that its fair value per share is around $139.4. This is calculated using our proprietary valuation line, which takes into account factors such as the company’s earnings per share, price-to-earnings ratio, and expected growth rate. Currently, MOHAWK INDUSTRIES stock is trading at $121.5, a fair price which is undervalued by 12.8%. Our analysis suggests that there may be an opportunity for investors to purchase the company’s shares at a discounted rate, in anticipation of future growth and a return to a higher trading price. More…
Peers
Mohawk Industries Inc is one of the largest flooring companies in the world. Its main competitors are MillerKnoll Inc, Burberry Group PLC, and Traeger Inc.
– MillerKnoll Inc ($NASDAQ:MLKN)
Founded in 1893, Miller Knoll is one of the oldest and largest accounting firms in the United States. With over 120 years of experience, the company provides a full range of services, including auditing, tax, and consulting. It has a market cap of 1.35B and a ROE of 6.45%. Miller Knoll is a publicly traded company on the New York Stock Exchange.
– Burberry Group PLC ($LSE:BRBY)
Burberry Group PLC is a British luxury fashion house headquartered in London, England. Its main products are clothing, fragrances, and cosmetics. As of 2022, Burberry Group PLC has a market capitalization of 7.15 billion pounds and a return on equity of 21.58%. The company was founded in 1856 by Thomas Burberry and has since become one of the most recognizable luxury brands in the world.
– Traeger Inc ($NYSE:COOK)
Traeger Inc is a publicly traded company with a market capitalization of 417.38 million as of 2022. The company has a return on equity of -26.37%. Traeger Inc is engaged in the business of manufacturing and selling wood pellet grills and related accessories.
Summary
Total revenue for the quarter was USD 33.5 million, a decrease of 82.3% year-on-year. Net income fell 4.0%, coming in at USD 2650.7 million. This performance reflects the disruption caused by the coronavirus pandemic, and it is necessary for investors to take a long-term view when assessing the health of the company. As restrictions are eased and the economy begins to recover, Mohawk Industries is well-positioned to benefit from increased demand and could experience a potential upside in the coming quarters.
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