DRC
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 — DRC
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2017
DRC's Beneish M-Score of -2.1256 indicates a lower likelihood of earnings manipulation, as it is below the threshold of -1.78. However, the high GMI of 1.7404 and low earnings quality metrics raise concerns about the sustainability of earnings and potential financial misrepresentation.
- GMI of 1.7404 indicates potential earnings manipulation risk, as it is significantly above 1, suggesting deteriorating gross margins.
- Earnings quality margin score of 36.7/100 is low, indicating potential issues with profit sustainability.
- Cash conversion score of 100.0/100 indicates strong cash flow generation relative to earnings.
- DSRI of 0.9094 suggests that the company is managing its inventory effectively, which is a positive operational signal.
The concentration of ownership with Tập đoàn Hóa chất Việt Nam holding 50.5% may lead to governance risks, as decisions may heavily favor the interests of this major shareholder over minority interests.
Investors should closely monitor earnings quality metrics and consider the implications of high institutional ownership concentration. A cautious approach is advised, focusing on cash flow sustainability and operational efficiency.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for DRC — hover nodes for intel, click to navigate