CPC
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 — CPC
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2018
CPC exhibits a Beneish M-Score of -1.748, indicating a low likelihood of earnings manipulation, as it is just above the manipulation threshold of -1.78. However, the earnings quality score of 51.1 suggests potential concerns, particularly with cash conversion metrics, which may indicate issues in the sustainability of reported earnings.
- Earnings Quality Score of 51.1/100 indicates moderate risk, particularly with cash conversion at 0.0/100, suggesting potential liquidity issues.
- GMI of 1.4278 indicates increasing gross margins, which could be a red flag if not supported by revenue growth, as SGI is at 1.1699.
- Receivables score of 100.0/100 indicates strong management of receivables, which is a positive signal for cash flow.
- DSRI of 0.7683 suggests that inventory is being managed efficiently relative to sales.
The ownership structure is relatively concentrated, with the top shareholder holding 20.3%, which may lead to governance risks if decisions favor major shareholders over minority interests.
Investors should closely monitor cash flow and earnings quality metrics, particularly cash conversion, before making significant investments in CPC. Consider a cautious approach, weighing the positive signals against the identified risks.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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