$Owens-Corning (OC.US)$🎯 2027.7.26 The current price is 137...

New data: Third quarter and annual report after 2022, 2023Q1

In 2022, revenue increased by 14.9%. Operating profit increased by only 10.2% due to the sharp increase in expenses, while net profit increased by 24.7% due to equity income of 130 million yuan. Interest expenses in 2022 accounted for 6.9% of operating profit and were not burdensome.

Revenue shrank slightly by 0.6% in 2023Q1, operating profit fell sharply by 21.6% due to declining gross margin and continued soaring expenses, while net profit increased 24.4% to 380 million dollars due to income from the sale of fixed assets of 190 million yuan.

There was little change in accounts receivable in 2022. Inventory increased by 260 million to 1.33 billion, indicating that sales are facing resistance.

Goodwill and other intangible assets are $3 billion, accounting for 62% of net assets of $4.837 billion. Treasury stock is 2,816 billion, which is considered an invisible asset. With a long-term loan of 3 billion dollars, the actual leverage ratio is not low.

Over the past five years, with the exception of 2018, net operating cash flow was significantly higher than net investment, resulting in many shareholder surpluses.

Currently, the price-earnings ratio is 10.8, and the price-earnings ratio TTM has dropped slightly to 9.7. If you calculate the 5-year average net profit of 560 million, the price-earnings ratio is 22. If you look at growth stocks, there is a certain discount, and if you look at cyclical stocks, the valuation is too high. Overall, it is relatively safe to lower the position.