$Clean Harbors (CLH.US)$🎯 2023.7.12 The current price is 16...

New data: Post-2022 third quarter and annual report, 2023Q1 quarterly report

In 2023, revenue increased 35.8%, operating profit increased 82.5%, and net profit increased 102.6%. This is a very large increase. What is rare is that 2023Q1 continued to grow, revenue increased 11.8%, operating profit increased 39%, and net profit increased 60%.

What is interesting is that revenue is growing so fast, and interest expenses are growing rapidly at the same time. Interest expenses will reach 110 million in 2023, accounting for 17% of operating profit, which is a heavy burden.

The balance sheet shows that the balance ratio in 2022 fell from 73.2% to 68.6%. The ratio of revenue and inventory was normal, but the total increase was 258 million yuan. Fortunately, the net profit was still below 410 million yuan.

Goodwill and other intangible assets of $1,924 million, which is comparable to net assets of $1.98 billion, are not high in assets.

Long-term loans of 2.41 billion dollars, and the leverage ratio is very high.

Net operating volume over the past five years has been lower than net investment. Mainly, more than 1 billion dollars were invested in mergers and acquisitions in 2021, and it will take time to generate shareholder surpluses.

Currently, the price-earnings ratio is 22.1, and the price-earnings ratio TTM has dropped to 20.8. It seems that the results of mergers and acquisitions are very good, but you can still choose carefully (⭐️).