$Avantor (AVTR.US)$ 🎯 2023.8.17 The current price is 21, an...

New data: First two quarters of 2023

Revenue has been shrinking for 3 consecutive quarters, and operating profit and net profit have been shrinking for 2 consecutive quarters. Among them, net profit turned into a loss in 2023Q2.

Revenue contracted 8.7% in the first two quarters of 2023, operating profit shrank 23% due to falling gross profit and rising expenses, and net profit shrank sharply by 70% due to interest leverage and capital asset impairment. Interest expenses in the first half of the year accounted for 32% of operating profit, which was extremely burdensome.

Goodwill and other intangible assets have now depreciated to 9.589 billion dollars, nearly double the net assets of 5,011 billion dollars. The assets are very scarce, long-term loans of 5.57 billion yuan, the leverage ratio is extremely high, and the interest burden is very heavy.

Currently, the price-earnings ratio is 20.8, and the price-earnings ratio has increased to 33.3. This is too high for cyclical stocks, and the position has been closed.