DFC
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 — DFC
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2020
DFC exhibits several concerning indicators of potential financial manipulation, as evidenced by a Beneish M-Score of -3.6556, significantly below the manipulation threshold of -1.78. While the earnings quality score of 56.7 suggests moderate reliability, specific components such as the receivables and revenue metrics raise significant red flags.
- Beneish M-Score of -3.6556 indicates a high likelihood of earnings manipulation.
- Earnings quality score of 56.7, particularly low receivables score of 0.0/100, suggests potential issues with revenue recognition.
- Strong cash conversion score of 100.0/100 indicates effective cash management.
- SGAI of 1.2847 suggests that selling, general, and administrative expenses are growing at a rate that may support future revenue growth.
The ownership structure is heavily concentrated among a few individuals, with the top five shareholders holding over 56% of the company. This concentration can lead to governance risks and potential conflicts of interest.
Investors should exercise caution and conduct further due diligence, particularly focusing on revenue recognition practices and the implications of concentrated ownership. Monitoring future earnings reports for signs of improvement in receivables and revenue metrics is advisable.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for DFC — hover nodes for intel, click to navigate