DHP
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 — DHP
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2017
DHP exhibits a Beneish M-Score of -2.7688, indicating a low likelihood of earnings manipulation. However, the earnings quality score of 76.1 suggests potential concerns in revenue recognition and margin quality, which could pose risks in financial reporting.
- Earnings quality margin score is only 7.2/100, indicating significant concerns regarding profitability and potential revenue recognition issues.
- Revenue quality score is 0.0/100, suggesting that revenue recognition practices may not align with cash flow performance.
- Beneish M-Score of -2.7688 is well below the manipulation threshold of -1.78, suggesting a lower risk of earnings manipulation.
- High cash conversion score of 100.0/100 indicates strong cash flow management relative to earnings.
The ownership structure is highly concentrated with the top five shareholders holding 67% of the company, which may lead to governance risks and potential conflicts of interest.
Investors should closely monitor revenue recognition practices and margin improvements while considering the strong cash flow management as a positive aspect. A deeper analysis of the company's governance structure is also recommended.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for DHP — hover nodes for intel, click to navigate