CTA
ConstructionValuation Track Record
Retroactive intrinsic value vs actual close price — CTA
Earnings Quality
Fiscal year 2016
Financial Forensics
Beneish M-Score · 2015
CTA exhibits several concerning financial metrics indicating potential earnings manipulation, particularly with a Beneish M-Score of -2.4298, which is below the manipulation threshold. The earnings quality score of 39.9/100, driven by poor cash conversion and margin metrics, raises further concerns about the sustainability of reported earnings.
- Beneish M-Score of -2.4298 indicates potential earnings manipulation, significantly below the threshold of -1.78.
- Earnings Quality Score of 39.9/100, with cash conversion at 0.0/100, suggests severe issues in converting earnings to cash.
- SGI of 1.9776 indicates aggressive revenue growth that may not be supported by cash flows.
- Receivables quality score of 100.0/100 indicates strong management of receivables, suggesting effective credit control.
- Low SG&A Index (0.2165) indicates efficient management of selling, general, and administrative expenses.
The ownership structure is concentrated, with the top five shareholders holding 66.2% of shares, which may lead to governance risks and reduced accountability. Individual shareholders dominate, potentially impacting decision-making and transparency.
Investors should exercise caution and conduct further due diligence, particularly regarding cash flow sustainability and revenue recognition practices. Consider monitoring future earnings reports closely for signs of improvement or continued deterioration.
Generated by AI based on quantitative data. Not financial advice.