$Griffon (GFF.US)$It is an American company listed in 1993. ...

The company's main business is consumer and professional products, household and construction products, and 10.7% defense electronics.

Gross margin has remained around 27% over the past 5 years, and reached 28.2% in 2021. With the exception of the return on net assets, which reached 28.8% in 2018, the remaining 4 years were below 10.5%.

In the past 5 years, with the exception of 2017 and 2021, revenue continued to grow for the middle 3 years, with an overall increase of 16%. With the exception of 2017, operating profit increased continuously for 4 years, with an average growth rate of 9.3%. Net profit skyrocketed once in 2018, with a 5-year average growth rate of 21%. In 2018, there was mainly a profit of 92.42 million from cessation of operations. The average growth rate of continuous operating profit in the past 3 years is 29%, which is still quite fast.

In the first three quarters of 2022, revenue increased by 13.2%, operating profit increased by 79%, and net profit increased by 255.8%. Among them, continuing operating profit increased 100%, and the growth rate was not low.

The income statement shows that interest expenses account for 37% of operating profit, and the burden is not light.

The balance ratio fell all the way from 78.7% to 69% over the past 5 years, but it rebounded to 74% in the first three quarters of 2022.

The balance sheet shows that there has been a marked increase in cash, accounts receivable and inventory accounts are normal, and the growth rate is normal. However, cash declined significantly in the first 3 quarters of 2022, and accounts receivable and inventory increased a lot. I wonder if this was due to seasonal factors.

Long-term loans of $1,575 million account for 174% of net assets of $906 million. The leverage ratio is indeed not low.

Currently, the price-earnings ratio is 22.2, and the price-earnings ratio is 7.7. In the current context of interest rate hikes, we can wait and see.