$CPI Card Group (PMTS.US)$Revenue continued to grow in the l...

Over the past 5 years, gross margin has continued to grow in the past 4 years, and the growth rate of operating expenses has been relatively moderate, but interest expenses have remained high. As a result, net profit was only reversed in 2021. Interest expenses in 2021 accounted for 51% of operating expenses, and the interest burden was very heavy.

Due to the impact of income tax, net profit in 2021 was lower than in 2020, and profit before tax actually increased by 85%.

Revenue increased by 24% in the first three quarters of 2022, but due to a decline in gross margin, operating expenses only increased by 12.4%, profit before tax increased by 52.8%, and net profit increased by 42%.

The balance ratio fell from 151% to 145% in the past 5 years, and declined further to 131% in Q3 2022.

The accounts receivable ratio and growth rate are relatively normal. Inventory grew from 0.025 billion to 0.058 billion in 2021, an increase of 0.033 billion, exceeding 0.016 billion in net profit for that year, and the profit content is very low. Inventory continued to grow by 0.014 billion to 0.072 billion in Q3. The growth rate declined quite a bit, lower than the current net profit of 0.024 billion, but accounts receivable increased by 0.016 billion during the period, and net profit still had no gold content.

Over the past five years, net operating cash flow has been significantly lower than net investment, and no shareholders' surpluses have been generated.

Currently, the price-earnings ratio is 24.5, and the price-earnings ratio has dropped to 15.8. Although there is a big discount compared to the profit growth rate, considering the net profit content and cash flow, it is possible to wait for the annual report to make a judgment.