DRI
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 — DRI
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
DRI exhibits several concerning indicators of potential financial manipulation, particularly highlighted by a Beneish M-Score of 0.4928, which is above the manipulation threshold of -1.78. The high DSRI of 3.6875 and low AQI of 0.9574 further suggest issues with revenue recognition and earnings quality.
- Beneish M-Score of 0.4928 indicates potential earnings manipulation, well above the threshold of -1.78.
- DSRI of 3.6875 suggests significant growth in receivables relative to sales, raising concerns about revenue recognition.
- Earnings Quality Score of 53.9/100 indicates moderate earnings quality, with 0.0/100 in receivables and revenue metrics, signaling potential issues in revenue reporting.
- Strong eq_margin score of 100.0/100 indicates effective cost management and profitability on sales.
- The institution holds a significant 45.0% stake in the company, which may provide stability and governance oversight.
The ownership structure is heavily skewed towards a single institutional investor, which could lead to governance risks if their interests diverge from minority shareholders. The low presence of diverse institutional investors may also limit checks and balances.
Investors should approach DRI with caution, considering the elevated risk of earnings manipulation. It is advisable to conduct further due diligence on financial reporting practices and monitor for any changes in the ownership structure or governance.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for DRI — hover nodes for intel, click to navigate