$Darling Ingredients (DAR.US)$🎯 2024.3.24 Current price 45....

New data: 2023Q4, revenue shrank by 8.7%, operating profit increased 10.8% due to a sharp increase in gross margin, and net profit shrank by 45% due to lack of high equity income last year.

Revenue increased by 3.9% in 2023, and operating profit shrank by 14% due to a sharp increase in expenses. Coupled with a sharp increase in interest expenses, net profit shrank by 11.6%. Interest costs account for 43% of operating profit and are extremely burdensome.

The balance ratio did not change much. Total assets increased by 20%. On the asset side, mainly accounts receivable and inventory increased slightly, goodwill and other intangible assets increased sharply by 730 million to 3.56 billion yuan, accounting for 76% of the net assets of 4.694 billion yuan, and long-term loans increased by 1.05 billion yuan to 4.37 billion yuan, which is 93% of net assets, and the leverage ratio is extremely high.

Net cash flow operating in 2023 was still significantly lower than net investment, and no shareholder surplus was generated.

Currently, the price-earnings ratio is 11.4, and the five-year average net profit of 540 million yuan corresponds to a price-earnings ratio of 13.4. The valuation is in a reasonably high position and can be withdrawn.