Mohawk Industries (MHK)

Executive Summary

Mohawk Industries is the world’s largest flooring manufacturer, the company behind Daltile, Marazzi, Pergo, Quick-Step, Karastan and Unilin, with $10.8 billion of 2025 sales from 78 plants in 19 countries. Its adjusted earnings per share peaked at $13.61 in 2017 and were $8.96 in 2025, and the stock sits 58% below its 2017 high. Today it trades at 0.85 times book value, under 6 times EBITDA and an 11% free-cash-flow yield, with net debt below one year of EBITDA. The second quarter was its strongest in two years, the tariff regime now favors a domestic manufacturer, and on September 30 Paul De Cock succeeds Jeff Lorberbaum as chief executive after 25 years. Against that, the business earns about 6% on its capital and insiders have been selling rather than buying. In this report we work through why the stock has traded below book for four years, what mid-cycle earnings look like, and what a housing-turnover recovery would be worth.

What’s Inside The Full Report

• 15-year financial summary table — revenue, net income, GAAP & adjusted EPS
• Valuation framework — current multiples vs. 5-year historical range
• Peer comparison table — multiples, margins, balance-sheet metrics
• Base case, bull case, bear case price targets with explicit math
• Competitive position and economic moat analysis
• Management and capital allocation track record
• Balance sheet review — leverage, credit ratings, distribution coverage
• Insider activity — recent open-market buys / sells with interpretation
• Strategic acquisitions and divestitures history
• Sell-side consensus and where TTCM differs
• Detailed risk factors specific to the name
• Bull case and forward catalysts to watch
• TTCM’s overall rating and the specific price levels that would change our view