ACM
CyclicalsValuation Breakdown
Cyclical companies (chemicals, oil & gas, basic resources) have earnings that swing dramatically with commodity prices and economic cycles. Valuing them on a single year's earnings is misleading: they look cheap at peaks and expensive at troughs. This model uses 7-year median EBITDA ("mid-cycle" earnings) and a 7-year median EV/EBITDA multiple to estimate what the firm is worth at a normal point in the cycle.
Valuation Track Record
Retroactive intrinsic value vs actual close price — ACM
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2017
ACM exhibits significant financial red flags, particularly indicated by a Beneish M-Score of -10.2323, suggesting potential earnings manipulation. The earnings quality score of 30.1/100, coupled with alarming metrics such as a DSRI of 5.3666 and an AQI of 1.0530, raises serious concerns about the sustainability of reported earnings.
- Beneish M-Score of -10.2323 indicates likely manipulation, well below the threshold of -1.78.
- DSRI of 5.3666 suggests significant inventory growth relative to sales, which may indicate overstatement of revenue.
- Earnings Quality Score of 30.1/100 reflects poor cash conversion (21.9/100) and no receivables or revenue quality, indicating potential issues with revenue recognition.
- GMI of 0.8098 suggests that gross margins are stable, which could indicate some resilience in operational performance despite other red flags.
The ownership structure is highly fragmented with no single shareholder holding a significant stake, which may lead to governance challenges and lack of accountability.
Investors should exercise caution and consider avoiding ACM until further clarity on earnings quality and operational sustainability is provided. A deeper investigation into cash flow metrics and inventory management practices is recommended.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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> mapping common ownership for ACM — hover nodes for intel, click to navigate