$Avantor (AVTR.US)$Listed in 2019, the company has maintaine...
$Avantor (AVTR.US)$Listed in 2019, the company has maintained 5 years of revenue growth, with an average growth rate of 6.4% for the past 4 years. In 2022, the growth rate decreased to 1.7%. The average growth rate of operating profit for the past 4 years was 29%, which decreased to 16.3% in 2022. The net income turned around in 2019 and the average growth rate for the past 3 years is very high, but it decreased to 20% in 2022.
The income statement shows that the company's gross margin has slowly improved over the past 5 years, and cost control has been very good, without increasing with the growth of revenue.
In 2022, the interest expense reached 24% of operating profit, indicating a considerable interest burden.
The asset-liability ratio has been declining since it was listed in 2019, from 74.8% to 63.9%.
The quantity and growth rate of accounts receivable and inventory are relatively normal.
In 2021, goodwill and intangible assets increased significantly from 6.9 billion to 10.5 billion, which should be due to a major acquisition. In 2022, it decreased to 9.79 billion due to the impact of impairment of intangible assets, which is twice the net assets of 4.855 billion, indicating a relatively virtual asset.
In 2022, long-term borrowings amounted to 5.92 billion, exceeding the net assets, indicating a high leverage ratio.
In the past 5 years, the net cash flow from operations has been slightly higher than the net investment amount, resulting in a small amount of shareholder surplus.
Currently, the P/E ratio is 24, which is not significantly discounted compared to the decreasing growth rate. However, considering the improvement in gross margin and the effectiveness of expense control, there is a high possibility of maintaining the growth rate, so it can be cautiously selected (⭐️).
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