$Installed Building Products (IBP.US)$It is an American comp...

The gross margin is basically around 29%, and the return on net assets has increased from 22.6% to over 30%, which is very attractive.

Revenue, operating profit, and net profit have all continued to grow over the past 5 years, with an average net profit growth rate of 25%. In the first quarter of 2022, the growth rate was 34.4%, 83.2%, and 95.6%, respectively, and the growth rate has not slowed down.

The income statement shows that interest expenses currently account for 17% of revenue, and the burden is not small. Strangely enough, debt does not seem to have decreased when profit growth is so good.

Over the past five years, the balance sheet first rose from 71.5% to 77.3%, then gradually declined. Currently, it is 76.4%, and it has rebounded a bit.

Accounts receivable and inventory increased by a total of 110 million dollars in 2021, close to a net profit of 120 million for the whole year. Cash flow must be very poor in 2021.

The ratio of receivables and inventory to revenue is quite normal.

Goodwill and other intangible assets are 583 million, accounting for 150% of the net assets of 390 million. The assets are very poor. Long-term loans of $830 million, accounting for 213% of net assets of $390 million, and the leverage ratio is too high.

Net cash flow from operating over the past 5 years has been lower than net investment, and there is no shareholder surplus.

Based on the above analysis, it's currently unappealing.