$Installed Building Products (IBP.US)$It is a USA company li...

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

Over the past 5 years, both revenue, operating profit, and net income have continued to grow, with an average net income growth rate of 25%. In 2022Q1, they increased by 34.4%, 83.2%, and 95.6% respectively, showing no signs of slowing down.

The income statement shows that interest expenses currently account for 17% of revenue, which is a considerable burden. Strangely, despite the good profit growth, the debt does not seem to have decreased.

Over the past 5 years, the balance sheet first increased from 71.5% to 77.3% and then gradually decreased, currently at 76.4%, showing some slight increase again.

Accounts receivable and inventory increased by a total of 0.11 billion in 2021, close to the net profit of 0.12 billion for the year. The cash flow in 2021 must be very poor.

The proportion of accounts receivable and inventory to revenue is relatively normal.

Goodwill and other intangible assets are 0.583 billion, accounting for 150% of net assets of 0.39 billion. The assets are very weak. Long-term loans are 0.83 billion, accounting for 213% of net assets of 0.39 billion. The leverage ratio is too high.

For the past 5 years, the net operating cash flow has been lower than the net investment cash flow, with no shareholder surplus.

Based on the above analysis, it is currently not attractive.