CST
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 — CST
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
CST exhibits a Beneish M-Score of -2.8121, indicating a low likelihood of earnings manipulation. However, the earnings quality metrics reveal significant weaknesses, particularly in revenue recognition and profit margins, which could pose risks to financial stability.
- Earnings Quality Score of 76.8/100 is decent, but the eq_margin is alarmingly low at 9.6/100, indicating potential issues with profitability.
- The eq_revenue score is 0.0/100, suggesting that revenue recognition practices may be highly questionable.
- A DSRI of 0.4095 indicates that accounts receivable are growing slower than sales, which is a positive sign for cash flow.
- The eq_cash_conv score of 100.0/100 reflects excellent cash conversion efficiency, indicating that the company is effectively turning sales into cash.
The majority ownership by Tập đoàn Công nghiệp Than - Khoáng sản Việt Nam at 65.1% suggests a strong institutional backing, which can provide stability. However, such concentration may also lead to governance risks if interests diverge from minority shareholders.
Investors should closely monitor CST's revenue recognition practices and profitability metrics. Given the moderate risk level, a cautious approach is advised, focusing on improvements in earnings quality 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 CST — hover nodes for intel, click to navigate