CGV
ConstructionValuation Breakdown
Construction and industrial firms have characteristics of both cyclical businesses (lumpy project-based revenue) and growth companies (expanding order books). This model blends two approaches 50/50: EV/EBITDA valuation (captures current earning power relative to peers) and FCF-based DCF (captures future cash generation potential). If EV/EBITDA produces a negative value (debt exceeds enterprise value), only DCF is used.
Valuation Track Record
Retroactive intrinsic value vs actual close price — CGV
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of 3.3234 indicates a high likelihood of earnings manipulation, significantly surpassing the threshold of -1.78. Coupled with a low Earnings Quality Score of 41.1/100, CGV exhibits concerning financial health, particularly in cash conversion and revenue recognition.
- Beneish M-Score of 3.3234 indicates likely manipulation, well above the threshold of -1.78.
- Earnings Quality Score of 41.1/100, with an alarming eq_cash_conv of 0.8/100 and eq_revenue of 0.0/100, suggesting poor cash flow management and revenue recognition issues.
- SGI of 5.0785 indicates excessive sales growth that may not be sustainable or accurately reflected in earnings.
- DSRI of 1.3728 suggests that inventory levels are relatively in line with sales, indicating no immediate inventory-related red flags.
- AQI of 0.8670, while low, indicates some level of accrual quality that could be monitored for improvement.
The ownership structure is fragmented with significant individual shareholders, which may lead to governance issues and potential conflicts of interest. The largest shareholder holds only 15.1%, indicating a lack of control that could affect decision-making.
Investors should exercise caution and closely monitor CGV's financial disclosures for signs of manipulation. It may be prudent to wait for improved earnings quality metrics and clearer revenue recognition practices before considering an investment.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for CGV — hover nodes for intel, click to navigate