BRC
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 — BRC
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
BRC shows a Beneish M-Score of -2.6867, indicating a low likelihood of earnings manipulation, as it is well below the manipulation threshold of -1.78. However, the earnings quality metrics reveal some concerns, particularly with a revenue quality score of 0.0/100, which suggests potential issues in revenue recognition.
- Revenue quality score of 0.0/100 indicates significant concerns regarding the recognition and sustainability of revenue.
- GMI of 1.2554 suggests increasing gross margins, which may be unsustainable if not supported by revenue quality.
- Earnings Quality Score of 81.8/100 indicates overall strong earnings quality, particularly in cash conversion and receivables.
- Low DSRI of 0.8620 suggests that inventory levels are well managed relative to sales, reducing the risk of overproduction.
The ownership structure is heavily concentrated, with the top three institutional shareholders holding 87.5% of the shares. This concentration may lead to governance risks, particularly in decision-making processes that may not favor minority shareholders.
Investors should closely monitor revenue recognition practices and consider the implications of concentrated ownership on corporate governance. A deeper analysis into revenue generation methods is recommended before making significant investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for BRC — hover nodes for intel, click to navigate