$International Money Express (IMXI.US)$Selected in the fall ...

Launched in 2017, it mainly deals in remittance services from the US to Latin America. The main market is in the US, and the current price is 21.03.

Revenue has continued to grow over the past 5 years, with an average growth rate of 22.2% and 19.1% in 2022. Operating profit continued to grow, but the growth rate declined steadily, growing 24.8% in 2022. Net profit increased continuously for 4 years after reversing losses in 2019, and 22.4% in 2022. Interest expenses in 2022 accounted for 6.6% of operating profit, and the interest burden was not heavy. The gross margin has basically remained around 32.7% for the past 5 years, and the return on net assets has been above 39% for the past 4 years.

Revenue increased by 23.5% in the first three quarters of 2023, operating profit increased by only 11.1% due to a sharp increase in expenses, and net profit before tax increased by only 4.6% due to a sharp increase in interest expenses.

The balance ratio has declined from 80.3% to 58% in the past 5 years, and increased sharply to 70.7% in 2022 due to long-term loans. In 2022, accounts receivable increased sharply from $68 million to $63 million to $131 million, and net profit for the same period was only $57 million. The share of receivables in revenue increased from 13.7% to 24% in 2022, further increased by 34 million to 165 million in the 2023Q3, and net profit of 42 million during the same period, slightly improving.

Goodwill and other intangible assets are $73 million, accounting for 46% of the net assets of $158 million, and long-term loans of $193 million, which is 1.22 times net assets, and the leverage ratio is very high. The treasury stock is 100 million, and the share capital has not changed recently.

Currently, cash is 222 million, current ratio is 1.98, and quick ratio is 1.59.

Over the past five years, net operating cash flow has been significantly higher than net investment, generating a large number of shareholders' surpluses.

Currently, the price-earnings ratio is 14.2, and there is still a big discount compared to the growth rate. Considering the excessive growth in accounts receivable, you can only choose carefully (⭐️)