Company has done well in the last 5 years, growing sales at 12%+ CAGR; and profitability has also improved from Operating Profit Margins at 9% to 16%; however if I view auto industry as cyclical, last time it peaked was in 2014 at 15% OPM… Also a few things I find concerning and request views are:
- what to make of the rise in inventories (almost 1/3rd of quarterly sales is inventory); to the extent that the operating cash flow has turned negative for the 1st time in last 10+ yrs
- To maintain dividend, company borrowed which does not seem a good practice
pls have a look at the cash flow statement at Screener produced below
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