DTC
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 — DTC
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2022
DTC exhibits several concerning financial metrics, particularly highlighted by a Beneish M-Score of -2.645, indicating a low likelihood of manipulation. However, the earnings quality score of 30.0/100, driven by poor revenue and margin metrics, raises significant concerns about the sustainability of reported earnings.
- Beneish M-Score of -2.645, well below the manipulation threshold of -1.78.
- Earnings Quality Score of 30.0/100, with eq_margin and eq_revenue both at 0.0/100, indicating severe issues in revenue recognition and profitability.
- DSRI of 0.5047 suggests that accounts receivable are growing slower than revenue, which is typically a positive sign.
- SGI of 0.8604 indicates that sales growth is slowing, which can be a prudent strategy in a volatile market.
The ownership structure is heavily concentrated, with institutional investors holding 67.5% and 40.0% of shares, which may lead to governance risks and potential conflicts of interest.
Investors should exercise caution and closely monitor DTC's financial disclosures and earnings quality metrics. Consider waiting for improved earnings quality and transparency before making investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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