Mohawk Industries (MHK) Down In After-Hours Trading
Trade-Ideas LLC identified
(
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Mohawk Industries as such a stock due to the following factors:
- MHK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $134.5 million.
- MHK is down 4.2% today from today's close.
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More details on MHK:
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. MHK has a PE ratio of 29. Currently there are 7 analysts that rate Mohawk Industries a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Mohawk Industries has been 801,800 shares per day over the past 30 days. Mohawk has a market cap of $14.6 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.19 and a short float of 1.9% with 1.65 days to cover. Shares are up 27.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Mohawk Industries as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- MOHAWK INDUSTRIES INC has improved earnings per share by 21.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MOHAWK INDUSTRIES INC increased its bottom line by earning $7.25 versus $5.05 in the prior year. This year, the market expects an improvement in earnings ($10.09 versus $7.25).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Household Durables industry average. The net income increased by 22.1% when compared to the same quarter one year prior, going from $152.75 million to $186.49 million.
- 35.34% is the gross profit margin for MOHAWK INDUSTRIES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.13% is above that of the industry average.
- Net operating cash flow has significantly increased by 87.80% to $317.17 million when compared to the same quarter last year. In addition, MOHAWK INDUSTRIES INC has also vastly surpassed the industry average cash flow growth rate of -83.25%.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 42.87% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full Mohawk Industries Ratings Report.
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