DNP
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 — DNP
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
DNP's Beneish M-Score of -2.3617 indicates a lower likelihood of earnings manipulation, as it is below the threshold of -1.78. However, the earnings quality metrics reveal significant weaknesses, particularly in revenue recognition and profit margins, which could pose risks to financial stability.
- Earnings Quality Score of 68.4/100 indicates potential issues, especially with eq_margin at 0.0/100 and eq_revenue at 10.2/100, suggesting poor revenue recognition practices.
- DSRI of 1.2259 suggests a potential increase in receivables relative to sales, which may indicate aggressive revenue recognition.
- The cash conversion score of 100.0/100 indicates strong cash flow generation capabilities, which is a positive sign for operational efficiency.
- A low GMI of 0.9974 suggests that gross margins are stable, which can be a positive indicator in the context of competitive pressures.
The high concentration of ownership, with Công Ty TNHH Tasco Investment holding 57.2%, poses risks related to governance and potential conflicts of interest, particularly in decision-making processes.
Investors should closely monitor DNP's revenue recognition practices and consider a deeper analysis of cash flow trends. Given the elevated risk level, a cautious approach is advised until clearer signals of financial stability emerge.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for DNP — hover nodes for intel, click to navigate