Latest news with #MohawkIndustries
Yahoo
02-06-2025
- Business
- Yahoo
1 Value Stock on Our Buy List and 2 to Approach with Caution
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices. But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues. Identifying genuine bargains from value traps is something many investors struggle with, which is why we started StockStory - to help you find the best companies. Keeping that in mind, here is one value stock with strong fundamentals and two best left ignored. Forward P/E Ratio: 14.5x Synonymous with "dad shoe", Skechers (NYSE:SKX) is a footwear company renowned for its comfortable, stylish, and affordable shoes for all ages. Why Is SKX Risky? Constant currency revenue growth has disappointed over the past two years and shows demand was soft Estimated sales growth of 7.4% for the next 12 months implies demand will slow from its two-year trend Poor free cash flow margin of 4.4% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends Skechers is trading at $62.04 per share, or 14.5x forward P/E. Dive into our free research report to see why there are better opportunities than SKX. Forward P/E Ratio: 9.9x Established in 1878, Mohawk Industries (NYSE:MHK) is a leading producer of floor-covering products for both residential and commercial applications. Why Are We Out on MHK? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth ROIC of 3.5% reflects management's challenges in identifying attractive investment opportunities, and its decreasing returns suggest its historical profit centers are aging Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned At $100.61 per share, Mohawk Industries trades at 9.9x forward P/E. Check out our free in-depth research report to learn more about why MHK doesn't pass our bar. Forward P/E Ratio: 3.7x Pioneering treatments for a devastating childhood muscle-wasting disease that primarily affects boys, Sarepta Therapeutics (NASDAQ:SRPT) develops and commercializes RNA-targeted therapies and gene therapies for rare genetic disorders, primarily Duchenne muscular dystrophy. Why Are We Bullish on SRPT? Annual revenue growth of 51.3% over the last two years was superb and indicates its market share increased during this cycle Earnings per share grew by 38.8% annually over the last five years, massively outpacing its peers Cash burn has decreased over the last five years, showing the company is becoming a more self-sustaining business Sarepta Therapeutics's stock price of $37.50 implies a valuation ratio of 3.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
20-05-2025
- Business
- Yahoo
2 S&P 500 Stocks on Our Buy List and 1 to Steer Clear Of
While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds. Picking the right S&P 500 stocks requires more than just buying big names, and that's where StockStory comes in. That said, here are two S&P 500 stocks positioned to outperform and one best left off your watchlist. Market Cap: $6.76 billion Established in 1878, Mohawk Industries (NYSE:MHK) is a leading producer of floor-covering products for both residential and commercial applications. Why Do We Steer Clear of MHK? Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Mohawk Industries's stock price of $108.17 implies a valuation ratio of 10.6x forward P/E. If you're considering MHK for your portfolio, see our FREE research report to learn more. Market Cap: $70.49 billion Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes. Why Are We Backing CMG? Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth Same-store sales growth averaged 6.2% over the past two years, showing it's bringing new and repeat diners into its restaurants Enormous revenue base of $11.49 billion provides significant leverage in supplier negotiations Chipotle is trading at $51.85 per share, or 39.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it's free. Market Cap: $27.54 billion Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ:SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications. Why Are We Bullish on SMCI? Impressive 81.1% annual revenue growth over the last two years indicates it's winning market share this cycle Massive revenue base of $21.57 billion makes it a well-known name that influences purchasing decisions Improving returns on capital reflect management's ability to monetize investments At $44.45 per share, Super Micro trades at 15x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
Yahoo
16-05-2025
- Business
- Yahoo
MHK Q1 Earnings Call: Tariffs, Cost Actions, and Demand Weakness Shape Outlook
Flooring manufacturer Mohawk Industries (NYSE:MHK) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 5.7% year on year to $2.53 billion. Its non-GAAP profit of $1.52 per share was 8.2% above analysts' consensus estimates. Is now the time to buy MHK? Find out in our full research report (it's free). Revenue: $2.53 billion vs analyst estimates of $2.55 billion (5.7% year-on-year decline, 0.9% miss) Adjusted EPS: $1.52 vs analyst estimates of $1.41 (8.2% beat) Adjusted EBITDA: $267.9 million vs analyst estimates of $269.9 million (10.6% margin, 0.7% miss) Adjusted EPS guidance for Q2 CY2025 is $2.57 at the midpoint, below analyst estimates of $2.80 Operating Margin: 3.8%, down from 5.5% in the same quarter last year Free Cash Flow was -$85.4 million, down from $96.9 million in the same quarter last year Organic Revenue fell 2.5% year on year (-4.8% in the same quarter last year) Market Capitalization: $6.74 billion Mohawk Industries' first quarter was marked by ongoing softness in flooring demand, with management pointing to persistent challenges in residential remodeling, inflationary pressures, and the negative impact of new tariffs on imported flooring products. CEO Jeff Lorberbaum attributed the quarter's operating results to productivity gains and restructuring efforts, which helped partially offset weaker sales volumes and higher input costs. He noted, 'Our premium collections and differentiated products launched in 2024 generated above-market results,' but also highlighted ongoing pricing pressure and the strategic need to adapt to shifting consumer confidence and trade policy changes. Management focused on navigating a volatile marketplace through a mix of operational improvements and strategic repositioning, as well as highlighting the impact of external pressures like tariffs and input costs. Tariff Impact and Response: Management addressed new U.S. tariffs on Chinese flooring imports, estimating an annualized $50 million cost impact. The company has begun raising prices and adjusting supply chains, with CFO James Brunk stating that the timing of cost increases will depend on inventory turnover and anticipates the bulk of the impact in the second half of the year. Domestic Manufacturing Advantage: With much of its production based in the U.S. and Mexico, Mohawk expects to benefit relative to competitors facing higher tariffs on imports. Management plans to optimize internal capacity to offset potential cost disadvantages and to shift sourcing where possible. Restructuring and Cost Reductions: Ongoing restructuring initiatives are expected to yield $100 million in annualized savings. Management emphasized continued efforts to improve productivity and simplify operations, seeking further opportunities for cost containment as demand remains subdued. Commercial Channel Outperformance: The commercial segment, particularly in North America, showed resilience compared to residential remodeling, which management described as the lowest sector. Investments in commercial-focused products and accelerated launches have contributed to this relative strength. Product Mix and Pricing Strategy: Selective price increases were implemented in higher-value product categories, such as premium ceramic and laminate flooring. Management highlighted the role of product mix improvements—favoring premium and commercial lines—in supporting margins, despite overall competitive pricing pressure and low industry capacity utilization. Looking ahead, management expects external headwinds—including tariffs, inflation, and weak housing turnover—to remain significant, but is banking on cost actions, pricing initiatives, and selective investments to stabilize profitability. Tariff Pass-Through and Supply Chain Shifts: The company is seeking to offset the $50 million tariff cost through price increases and by maximizing domestic manufacturing. Management believes industry-wide price adjustments will occur as tariffs are passed through the market. Restructuring Benefits and Productivity Gains: Restructuring actions are planned to deliver $70 million in additional savings in the coming quarters. Management expects ongoing productivity initiatives to help cushion margin pressure from rising input costs. Macro and Housing Recovery Uncertainty: Future results hinge on stabilization in consumer confidence, interest rates, and housing activity. Management cited possible tailwinds from lower energy costs and potential interest rate cuts, but noted that visibility remains low given broader economic volatility. John Lovallo (UBS): Asked about the timing and cost split of tariff impacts. Management explained the bulk will be felt in late Q3 and Q4, with price increases and supply adjustments underway. Matthew Bouley (Barclays): Pressed on balancing price increases with a promotional market. CEO Jeff Lorberbaum said tariffs should be passed through as higher prices, but acknowledged ongoing pricing pressure in a low-demand environment. Rafe Jadrosich (Bank of America): Questioned the ability to grow earnings despite tariffs. Management reiterated plans to offset tariff costs with pricing and restructuring, but noted results depend on economic stabilization. Collin Verron (Deutsche Bank): Sought clarification on growth drivers in Flooring North America. Management noted commercial outperformance and differentiated product launches, while residential remodeling remained weak. Keith Hughes (Truist): Asked about the sustainability of positive price mix in key segments. Management cited premium product strength and channel mix shifts, especially the resilience of the commercial business. In future quarters, the StockStory team will be monitoring (1) the effectiveness of Mohawk's tariff-related price increases and supply chain realignment, (2) the realization of targeted restructuring and productivity savings, and (3) trends in commercial versus residential demand, particularly as interest rates and consumer confidence evolve. Additional focus will be on inventory management and evidence of any recovery in housing-related spending. Mohawk Industries currently trades at a forward P/E ratio of 10.6×. Should you double down or take your chips? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-05-2025
- Business
- Yahoo
Purple (PRPL) To Report Earnings Tomorrow: Here Is What To Expect
Bedding and comfort retailer Purple (NASDAQ:PRPL) will be reporting earnings tomorrow afternoon. Here's what you need to know. Purple met analysts' revenue expectations last quarter, reporting revenues of $129 million, down 11.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts' EBITDA estimates but EBITDA guidance for next quarter missing analysts' expectations significantly. Is Purple a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Purple's revenue to decline 12.9% year on year to $104.5 million, a reversal from the 12.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Purple has missed Wall Street's revenue estimates six times over the last two years. Looking at Purple's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Leggett & Platt's revenues decreased 6.8% year on year, meeting analysts' expectations, and Mohawk Industries reported a revenue decline of 5.7%, falling short of estimates by 0.9%. Leggett & Platt traded up 32% following the results while Mohawk Industries was down 1.9%. Read our full analysis of Leggett & Platt's results here and Mohawk Industries's results here. There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 8.8% on average over the last month. Purple's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $1.85 (compared to the current share price of $0.67). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
Yahoo
03-05-2025
- Business
- Yahoo
Mohawk Industries First Quarter 2025 Earnings: Misses Expectations
Revenue: US$2.53b (down 5.7% from 1Q 2024). Net income: US$72.6m (down 31% from 1Q 2024). Profit margin: 2.9% (down from 3.9% in 1Q 2024). The decrease in margin was driven by lower revenue. EPS: US$1.16 (down from US$1.65 in 1Q 2024). Our free stock report includes 1 warning sign investors should be aware of before investing in Mohawk Industries. Read for free now. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 16%. Looking ahead, revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Consumer Durables industry in the US. Performance of the American Consumer Durables industry. The company's shares are down 2.0% from a week ago. Be aware that Mohawk Industries is showing 1 warning sign in our investment analysis that you should know about... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
