APP
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 — APP
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
The Beneish M-Score of -4.0299 indicates a low likelihood of earnings manipulation, as it is well below the threshold of -1.78. However, the earnings quality score of 33.3/100, particularly low metrics in revenue and margin quality, raises concerns about the sustainability of reported earnings.
- Earnings Quality Score of 33.3/100 indicates significant issues with revenue and margin quality, both scoring 0.0/100.
- The accrual quality is very low at 4.3/100, suggesting potential issues with cash flow management.
- The DSRI of 0.8493 indicates that accounts receivable are growing slower than sales, which is a positive sign.
- The GMI of 1.1240 suggests that gross margins are improving, which could indicate operational efficiency.
The ownership structure is concentrated among a few individuals, which may lead to governance risks and potential conflicts of interest, particularly if these shareholders prioritize personal gains over broader shareholder value.
Investors should closely monitor cash flow and revenue recognition practices while considering a cautious approach to investment in APP, given the elevated risk profile and low earnings quality metrics.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for APP — hover nodes for intel, click to navigate