$Asbury Automotive (ABG.US)$It is an American company that l...

Over the past five years, gross profit margin has slowly risen from 16.4% to 19.3%, and return on equity has fallen from 41.3% to 35.3%, which is at a very high level.

Revenue fluctuated in the first four years of the past five years, and soared by 38% in 2021. Except for a slight decline in 2017, operating profit grew for four consecutive years, of which it doubled in 2021, while net profit grew rapidly for four consecutive years after shrinking by 17% in 2017, with an increase of 109% in 2021.

Revenue in the first two quarters of 2022 increased by 64.6%, operating profit increased by 85%, and net profit increased by 79.3%.

Overall interest expenses have increased over the past five years, accounting for 13% of operating profits in 2021, with a moderate burden.

The asset-liability ratio has dropped from 83.3% to 68.5% over the past five years, the proportion and growth rate of receivables are normal, and inventories have continued to decline in the past five years.

Long-term borrowing of 3.316 billion, accounting for 138% of net assets of 2.41 billion, even with 1.05 billion of treasury stocks, the proportion is still close to 100%.

Over the past five years, the cumulative net operating volume is lower than the net investment, and there is no shareholder surplus, mainly due to a big acquisition in 2021.

The current price-to-earnings ratio of 6.1x, 4.8x TTM, can be carefully chosen (⭐️).