$Icon PLC (ICLR.US)$Revenue has grown rapidly for 4 years, e...
$Icon PLC (ICLR.US)$Revenue has grown rapidly for 4 years, except for a 0.3% decline in 2020, with an average growth rate of 34.5% over 5 years. Operating profit has also grown rapidly for 4 years, except for a 6.55% decline in 2020, with an average growth rate of 20% over 5 years. Net income has significantly declined by 54% in 2021 due to restructuring and mergers and acquisitions, with an average growth rate of 12.4% over 5 years.
There is a very unfavorable trend in the income statement, with interest expenses growing rapidly, reaching 0.23 billion in 2022, accounting for 26% of the operating profit. It is a heavy burden.
In 2023 Q1, revenue increased by 4%, operating profit increased by 27.5%, and net income only increased by 4.2% due to the significant increase in interest expenses.
The balance sheet shows that the company borrowed 5.4 billion for a large acquisition in 2021, and goodwill and other intangible assets increased from 1 billion to 13.8 billion, far exceeding the net assets.
Accounts receivable increased from 0.73 billion to 2.8 billion in 2022, with the growth exceeding the net income of 0.505 billion for the year, accounting for 36% of the revenue for the year. The proportion and growth rate are both very unhealthy. In 2023 Q1, accounts receivable increased by 0.18 billion, exceeding the net income of 0.12 billion for the quarter.
Currently, the PE ratio is 40.2, and the TTM PE ratio has slightly decreased to 39.8. It is advisable to wait for a few more financial reports to assess the impact of the acquisition and whether accounts receivable has improved before making a judgement.
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