Investment Thesis for Mohawk Industries, Inc. (NYSE: MHK)

Abstract

This working paper is an in-depth financial analysis of Mohawk Industries, a US-based flooring company. Our analysis examines the economic factors that impact Mohawk’s underlying business and how Mohawk has adapted to these ever-changing factors. This economic analysis is then combined with our proprietary, Hanke-Guttridge Discounted Cash Flow (HG-DCF) model to determine Mohawk’s financial position. The HG-DCF model will be presented along-side Monte-Carlo simulations to reveal the distribution of probable free cash flows and the likelihood of future earnings. In addition to these quantitative factors, we also examine the compensation plans of Mohawk’s executives to assess alignment with shareholders. At the conclusion of this analysis, it is our intention for readers to understand Mohawk’s business plan and the company’s financial standing to arrive at a sound investment decision.