DRG
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 — DRG
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The forensic analysis of DRG reveals significant red flags indicating potential earnings manipulation, as evidenced by a Beneish M-Score of 0.1312, which is well above the manipulation threshold of -1.78. Additionally, the company's earnings quality score of 17.5/100 highlights severe deficiencies in cash conversion and revenue recognition.
- Beneish M-Score of 0.1312 indicates potential earnings manipulation, significantly above the safe threshold of -1.78.
- Earnings Quality Score of 17.5/100 suggests poor earnings quality, particularly with cash conversion and revenue recognition metrics scoring 0.0/100.
The overwhelming state ownership at 98.9% poses a risk of political influence and lack of accountability, which may hinder transparency and independent oversight.
Investors should exercise caution and consider conducting further due diligence on DRG, particularly focusing on cash flow and revenue recognition practices before making investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for DRG — hover nodes for intel, click to navigate