$Mueller Industries (MLI.US)$ 🎯 2023.7.13 The current price...

🎯 2023.7.13 The current price is 87.6, and the 1-year floating profit of 63.5% of the position has reached the reopening standard

New data: 2022 post-3 quarterly report and annual report, 2023Q1

Revenue in 2022 increased by only 5.7%, and operating profit surged 45.9% due to a sharp increase in gross margin. Net profit increased by only 39.5% due to lack of sales revenue last year, and the growth rate is still very fast.

Revenue shrank by 3.8% in 2023Q1. As gross margin continued to rise, operating profit increased 10.6% and net profit increased 10%. If revenue continues to shrink, profit growth will be difficult to maintain.

The balance ratio continued to decline sharply in 2022, falling from 27.3% to 19.1%, and rebounded slightly to 19.9% in 2023Q1. Accounts receivable declined in 2022. This is a reflection of a slowdown in revenue growth. Inventory increased slightly, and the ratio was not high.

Goodwill and other intangible assets account for 10.7% of net assets, a small proportion, and long-term loans of only 1.251 million.

Net operating income greatly exceeds net investment, and shareholder surpluses are high.

Currently, the price-earnings ratio is 7.5, and the price-earnings ratio has dropped to 7.4. Considering that it seems to be at the peak of the cycle, revenue has declined for 3 consecutive quarters. At the same time, the financial situation is very good, so no position adjustments will be made for the time being.