$Teledyne Technologies (TDY.US)$In the 2022.8.9 analysis, it...

The American company, which was listed in 1999, is mainly engaged in digital imaging and instrumentation business. The main markets are in the US and Europe, and the current price is 393.84.

In the past 5 years, revenue has increased for 4 years except 2020, with an average growth rate of 14%, an average growth rate of 20% in operating profit, and an average growth rate of 21.5% in net profit. Interest expenses account for 7.4% of operating profit in 2023, and the interest burden is not heavy. Gross margin increased from 39.3% to 43.3% in the past 5 years, net margin increased from 12.7% to 15.7%, and return on net assets fell from 16.3% to 10.2%.

2024Q1 revenue shrank by 2.4%, operating profit shrank by 3.6%, and net profit shrank by 0.1%.

The balance ratio has declined from 40.7 per cent to 36 over the past five years. %. There was a significant increase in total assets and net assets. Goodwill increased sharply in 2022, from 2.56 billion to 10.73 billion dollars, indicating that there were large acquisitions. This explains the rapid increase in revenue and profit in the past 3 years. Usually, acquisition-driven growth time is limited, and there may be depreciation pressure later. This is reflected in the rapid decline in revenue and profit growth. In 2023, the revenue growth rate fell to 3.2%, and the net profit growth rate fell to 12.3%.

The ratio and growth rate of accounts receivable and inventory is normal. Goodwill and other intangible assets are 10.163 billion, net assets of more than 9.333 billion dollars, and long-term loans of 2,646 billion yuan, which is 3 times the annual profit, which is not excessive.

It currently has 912 million dollars in cash, a current ratio of 1.8, and a moving ratio of 1.2.

Affected by major acquisitions in 2021, the cumulative net cash flow operating amount over the past 5 years has been lower than the net investment amount, and no shareholder surplus has been generated.

Currently, the price-earnings ratio is 21.3. Considering the limited growth usually brought about by acquisitions, we will wait and see.