$Griffon (GFF.US)$It is a USA company listed in 1993. From 2...

The company's main business is consumer and professional products, home and building products, as well as 10.7% in defense electronics.

Over the past 5 years, the gross margin has basically remained around 27%, reaching 28.2% in 2021. The net return on assets reached 28.8% in 2018, with the other 4 years below 10.5%.

Revenue has grown steadily over the past 5 years, except for 2017 and 2021, with a total increase of 16%. Operating profit has grown continuously for 4 years except in 2017, with an average growth rate of 9.3%. Net income had a sharp increase in 2018, with an average growth rate of 21% over 5 years. The significant increase in operating profit in 2018 was mainly due to the cessation of operating profit of 92.42 million. The average growth rate of continuous operating profit over the past 3 years is 29%, which is quite fast.

In the first three quarters of 2022, revenue accumulated a growth of 13.2%, operating profit increased by 79%, net income increased by 255.8%, with continuous operating profit growing by 100%, and the growth rate is also significant.

The income statement shows that interest expenses account for 37% of operating profit, which is still quite burdensome.

The asset-liability ratio has decreased from 78.7% over the past 5 years to 69%, but rose back to 74% in the first three quarters of 2022.

The balance sheet shows a significant increase in cash, with accounts receivable and inventory proportions normal and growth rates stable. However, there was a significant decrease in cash in the first 3 quarters of 2022, with a substantial increase in accounts receivable and inventory. It is unclear whether this is due to seasonal factors.

Long-term borrowings are 1.575 billion, accounting for 174% of net assets of 0.906 billion, the leverage ratio is indeed high.

Currently, the PE is 22.2, TTM PE is 7.7. It is advisable to adopt a wait-and-see approach in the current environment of interest rate hikes.