DTI
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 — DTI
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
DTI exhibits several concerning financial metrics that suggest potential earnings manipulation, particularly indicated by a Beneish M-Score of -1.1903, which is above the manipulation threshold. The earnings quality score of 52.2/100, combined with a low cash conversion rate, raises additional red flags regarding the sustainability of reported earnings.
- Beneish M-Score of -1.1903, indicating potential earnings manipulation as it is above the threshold of -1.78.
- Earnings Quality Score of 52.2/100, with a cash conversion score of 0.0/100, suggesting significant issues in converting earnings into cash.
- DSRI of 1.0443 indicates rising receivables relative to sales, which could signal aggressive revenue recognition practices.
- Receivables quality score of 100.0/100 suggests strong management of receivables, indicating that the company is effective in collecting owed amounts.
- SGI of 0.9669 indicates that sales growth is in line with the industry, which may suggest stable demand for DTI's products.
The ownership structure is fragmented with no single shareholder holding a controlling stake, which may lead to governance challenges and potential conflicts of interest among shareholders.
Investors should closely monitor DTI's cash flow and earnings quality metrics, and consider a cautious approach to investment until further clarity on financial practices is provided. Engaging with management for transparency on revenue recognition policies may also be prudent.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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