$StoneX (SNEX.US)$It is a brokerage business. The gross marg...
$StoneX(SNEX.US$It is a brokerage business. The gross margin is very low, basically around 1.1%. It only dropped sharply to 0.74% once in 2020. In the past 5 years, with an average growth rate of 17.6%, with an average growth rate of 17.6%, of which there was a sharp increase of 55.3% in 2022. In addition to the decline in 2020 and 2021, operating profit increased sharply in 3 years, with an average growth rate of 31%. Net profit declined by only 31% in 2021, and increased in the remaining 4 years, with an average growth rate of 34.5% in the past 3 years.
Revenue fell 10.9% in the first three quarters of 2023, operating profit increased 1.9 times due to increased gross margin, and net profit increased by only 21.3% due to the surge in interest expenses.
The balance sheet shows that long-term loans increased from 1.59 billion to 6.59 billion in the first 3 quarters of 2023, and interest expenses are likely to remain high for a long time.
Currently, the price-earnings ratio is 9.8, and the price-earnings ratio has dropped slightly to 8.6. Due to the recent sharp increase in gross margin from around 1.1% to 2.9%, it is questionable whether it can be maintained. It is necessary to observe a few more quarters before making a judgment.
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