DFF
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 — DFF
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2023
DFF exhibits significant financial red flags, particularly with a Beneish M-Score of -2.3777, indicating a strong likelihood of earnings manipulation. The earnings quality score of 22.0/100, driven by poor cash conversion and receivables management, further underscores the potential for financial misrepresentation.
- Beneish M-Score of -2.3777, indicating potential earnings manipulation as it is below the threshold of -1.78.
- Earnings Quality Score of 22.0/100, with a notably low cash conversion score of 6.4/100, suggesting poor quality of reported earnings.
- DSRI of 2.3248, indicating that accounts receivable are growing significantly faster than revenue, which is a potential red flag for revenue recognition issues.
- SGI of 0.4653, indicating a decrease in sales growth, which could suggest a more sustainable business environment if managed properly.
- DEPI of 0.6649, suggesting that the company is not overly aggressive in its depreciation policies, which is a positive sign for asset management.
The ownership structure is highly concentrated with the top five shareholders holding a combined 40% of shares, which may lead to governance risks and potential conflicts of interest, particularly in decision-making processes.
Investors should exercise caution and conduct further due diligence before considering an investment in DFF, focusing on improving earnings quality and transparency. Monitoring changes in the ownership structure and management practices will be crucial for assessing future risks.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for DFF — hover nodes for intel, click to navigate