$AutoNation (AN.US)$🎯 2023.8.8 The current price is 155.2, ...

New data: the second half of 2022 and the whole year, the first two quarters of 2023

In 2022, revenue increased by 4.4%, operating profit increased by 6.4%, and net profit increased by 0.32%. Interest expenses account for 8.7% of operating profit and are not burdensome.

In the first two quarters of 2023, revenue fell 2.5%, operating profit fell 18.1%, net profit fell 24%, interest expenses increased to 16.6% of operating profit, and burden-heavy.

In 2022, the balance ratio increased from 73.4% to 79.6%, the ratio and growth rate of receivables and inventories were relatively normal, and the balance ratio increased further to 81.1% in 2023Q2. The growth rate of inventories accelerated, with an increase of 520 million yuan in the second quarter, and current profit of only 561 million yuan.

Goodwill and other intangible assets were $2,397 million, 1.15 times the net assets of $2,092 million.

Short-term loans surged to $3.07 billion, and long-term loans increased to $3,834 billion, with a very high leverage ratio.

The company has been very aggressive in cancelling stocks in the past two years. It has cancelled 20% in 2021 and 25% in 2022, with a cumulative total of 40% cancelled. Currently, inventory stocks are 2.103 billion, and it is estimated that they will be cancelled this year.

Currently, the price-earnings ratio is 6.4, and the price-earnings ratio TTM has increased slightly to 6.44. If net profit falls 25% for the whole year, the price-earnings ratio will rise to 8.5. Considering that the leverage ratio of this stock is extremely high, the sector is still shrinking, so positions can be lowered appropriately.