$Mercer International (MERC.US)$Over the past 5 years, reven...
$Mercer International (MERC.US)$Over the past 5 years, revenue grew by 4 years, with an average growth rate of 14.3%, an increase of 26.5% in 2022, operating profit shrank sharply in 2019 and 2020 due to gross margin, and rapid growth in the remaining 3 years. The average growth rate for 5 years was 18.4%, of which 13.2% was increased in 2022, while net profit was affected by interest expenses in 2019 and 2020. Since then, losses have been drastically reversed, increasing by 44.5% to 250 million in 2022.
Interest expenses account for 18% of operating profit in 2022, and the burden is heavy.
Revenue for 2023Q1 fell 11.8%, and operating profit and net profit fell into a loss range.
The balance ratio hasn't changed much in the past 5 years; it's basically around 70%. The receivables and inventory ratios and growth rates are quite normal. Long-term loans of 1,336 million dollars are 1.6 times the net assets of 823 million yuan, and the leverage ratio is very high.
Currently, the price-earnings ratio is 2.5, and the price-earnings ratio TTM has increased to 4.8. If you calculate the 5-year average net profit of 100 million, the current price-earnings ratio is 6.1, which is in line with the valuation of cyclical stocks, but considering the higher leverage ratio, it's better to wait and see for the time being.
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