$AGCO Corp (AGCO.US)$ Aike Group (AGCO)It is an American com...

Aike Group (AGCO)It is an American company that listed on the stock market at $14 in 1992. Its current price is 109, with an average return of 7.1%. It is OK.

In the past five years, the gross profit margin has basically been about 22%, from 21.25% to 23.09%, while the return on net assets has risen from 6.4% to the current 28.05%, with a five-year average of 12.6%.

Revenue has maintained growth over the past five years except in 2019, with an increase of 21.7% in 2021. Operating profit has grown over the past five years, with an average growth rate of 27.7%, including an increase of 55.6% in 2021. Net profit fell by 56.7% in 2019, with an average growth rate of 41.3% over five years, including 114.75% in 2021. In the first two quarters of 2022, revenue, operating profit and net profit increased by 7.1%, 3.9%, respectively, shrinking by 24%. The growth rate slowed down, and profitability was also declining.

The income statement shows that interest expenses continue to decline, accounting for less than 1% of operating profit in 2021, with a light burden. Other expenses account for less than 10%, which has little impact. The net profit in the first two quarters of 2022 was mainly affected by large write-offs.

Over the past five years, the asset-liability ratio has risen from 61.2% to 65.8%. Inventories increased by 620 million in 2021, while net profit increased by only 482 million for the year. Inventory increased by 788 million in the first two quarters of 2022, while the net profit in the first two quarters was only 330 million.

At present, the price-to-earnings ratio is 9.2 and the price-to-earnings ratio is TTM 10.4, which is not very attractive.