$Installed Building Products (IBP.US)$It is an American comp...

The gross profit margin is basically around 29%, and the return on equity has risen from 22.6% to more than 30%, which is very attractive.

Revenue, operating profit and net profit have all maintained growth over the past five years, with an average net profit growth rate of 25%. 2022Q1 grew by 34.4%, 83.2% and 95.6% respectively, and the growth rate has not slowed down.

The income statement shows that interest expenses currently account for 17% of revenue, which is not a small burden, but it is strange that debt does not seem to be reduced when profit growth is so good.

Over the past five years, the balance sheet has risen from 71.5% to 77.3% and then gradually declined, and now stands at 76.4%, which has rebounded a little.

Accounts receivable and inventory grew by 110 million in 2021, close to full-year net profit of 120 million, and cash flow must be poor in 2021.

Receivables and inventories as a percentage of revenue are normal.

Goodwill and other intangible assets are 583 million, accounting for 150% of the net assets of 390 million. Long-term borrowing of 830 million, accounting for 213% of net assets of 390 million, the leverage ratio is too high.

Over the past five years, the net cash flow operation is lower than the net investment, and there is no shareholder surplus.

To sum up the above analysis, it is not attractive at present.