AMC
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 — AMC
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2019
The Beneish M-Score of -2.3061 indicates a low likelihood of earnings manipulation, as it is well below the threshold of -1.78. However, the earnings quality metrics reveal significant weaknesses, particularly in cash conversion and receivables, which could pose risks in financial reporting and operational efficiency.
- Earnings Quality Score of 64.2/100 indicates moderate concerns, particularly with eq_cash_conv at 52.3/100 and eq_receivables at 43.2/100, suggesting potential issues in cash flow management.
- SGAI at 1.1384 indicates higher selling, general, and administrative expenses relative to sales, which may signal inefficiencies.
- The low DSRI of 1.1182 suggests that inventory levels are well managed relative to sales, which is a positive indicator of operational efficiency.
- A strong eq_margin score of 100.0/100 indicates effective cost management in generating profits.
The top shareholder, a state-owned enterprise, holds a significant 40.0% stake, which may lead to potential conflicts of interest and influence over corporate governance. The presence of individual shareholders with smaller stakes may dilute accountability.
Investors should closely monitor cash flow metrics and operational efficiency indicators. It is advisable to conduct further due diligence on management practices and the influence of major shareholders before making investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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