DHM
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 — DHM
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -3.1554 indicates a low likelihood of earnings manipulation, as it is well below the threshold of -1.78. However, the earnings quality score of 47.8/100, particularly low scores in receivables and revenue metrics, raise concerns about the sustainability of reported earnings.
- Earnings Quality Score of 47.8/100 indicates potential issues with earnings sustainability, especially with receivables at 0.0/100.
- DSRI at 1.4402 suggests that inventory growth is outpacing revenue growth, which could indicate overproduction or inventory mismanagement.
- Beneish M-Score of -3.1554 suggests a low likelihood of earnings manipulation.
- Cash conversion score of 100.0/100 indicates strong cash flow generation relative to earnings.
The top shareholders are individual investors with significant stakes, which may lead to potential governance risks and lack of institutional oversight. The largest shareholder holds 20.1%, which could lead to concentrated decision-making.
Investors should closely monitor the company's inventory management and receivables collection practices. Consider a cautious approach to investment until improvements in earnings quality metrics are observed.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
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