Mohawk Industries, Inc.
Thesis
Mohawk is the second largest manufacturer of carpet in the U.S. and has a dominant franchise in carpet, ceramic tiles, and laminate flooring. The stock is currently trading at a cyclically depressed valuation with a double-digit free cash flow yield, and there is significant room for improvement as the macro environment for housing improves.
Did it work?
inconclusive
confidence: low
The pitch is a long thesis contingent on a housing-driven cyclical recovery and a valuation re-rating from a depressed double-digit FCF yield, but no price performance and no elapsed time are provided. Without either, there is no way to verify whether the stock re-rated, whether housing improved, or whether the thesis was invalidated. The verdict must therefore remain open.