$LPL Financial (LPLA.US)$🎯 2024.3.18 Current price 268.12, ...

New data: 23Q3 and 23Q4. Revenue continued to grow. Operating profit shrank 23.7% in Q4 due to a sharp increase in gross profit expenses, net profit before tax shrank 29.9% in Q4 due to a sharp increase in interest expenses, and net profit after tax shrank for two consecutive quarters due to income tax fluctuations, and contracted 31.8% in Q4.

Supported by a sharp increase in performance in the first half of the year, revenue increased 16.9% in 2023, operating profit increased by 31.8%, net profit increased by 26.1%, and the 5-year average net profit growth rate decreased to 22%.

The balance ratio increased from 77.1% to 80%. The increase in debt ratio was mainly due to the increase in long-term loans from 2,717 billion to 1 billion yuan to 3,734 billion yuan. Considering that there is still 1,887 billion in goodwill, the leverage ratio is extremely high compared to 2,079 billion yuan in net assets.

Cash declined from 850 million to 470 million, and accounts receivable increased from 2.42 billion to 2.86 billion, accounting for 28% of revenue. The repayment cycle was not short.

Net cash flow from operating is lower than net investment.

Currently, the price-earnings ratio is 19.6. Considering that the recent decline in net profit is mainly caused by sales expenses, not a deterioration in the business model, and revenue is still growing rapidly, it is still possible to choose carefully (⭐️)