$Franklin Electric (FELE.US)$In the past 5 years, revenue on...

In the first three quarters of 2022, revenue increased by 26.4%, operating profit increased by 42.5%, and net profit increased by 30% to 150 million.

The income statement shows that interest expenses accounted for 2.7% of operating profit in 2021, and the burden is very light.

Over the past five years, the balance ratio fell from 40.7% to 33.2%, then rebounded to 40%. Inventory increased by 150 million yuan to 450 million yuan in 2021, accounting for 27% of revenue. The increase was close to the net profit of 155 million yuan in 2021. The net profit content was very small, while revenue in 2021 only increased by 420 million.

Inventories increased from 450 million to 560 million in the first three quarters of 2022, an increase of 110 million yuan. Coupled with an increase of 50 million dollars in accounts receivable, it has already exceeded net profit for the same period.

Long-term loans have not changed much, at less than 100 million. Short-term loans have increased rapidly in the past three quarters, from 100 million to 180 million. This is also an inevitable result of rising inventories and receivables.

Net cash flow over the past 5 years has been higher than net investment, but there has been a net outflow of cash flow in the past 4 quarters.

The current price-earnings ratio is 28.6 and the price-earnings ratio TTM is 23.4, which is not very high compared to the recent growth rate, but considering the sector's recent overall performance and profit content, it is currently not very attractive.