ECO
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 — ECO
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
ECO exhibits several concerning indicators that suggest potential earnings manipulation, particularly with a Beneish M-Score of -1.3092, which is above the manipulation threshold of -1.78. The low earnings quality score of 25.2/100, especially the cash conversion score of 0.0/100, raises significant red flags regarding the sustainability of reported earnings.
- Beneish M-Score of -1.3092 indicates potential earnings manipulation, as it is above the threshold of -1.78.
- Earnings Quality Score of 25.2/100, with a cash conversion score of 0.0/100, suggests severe issues in converting earnings into cash.
- High DSRI of 1.5140 indicates that accounts receivable are growing faster than revenue, which may signal aggressive revenue recognition practices.
- SGI of 1.0292 indicates stable sales growth, which is a positive sign in the context of overall market performance.
- Strong gross margin of 82.6/100 suggests that the company maintains a healthy profitability level despite concerns in other areas.
The concentrated ownership structure, with the top three shareholders holding 69% of the shares, raises concerns about governance and potential conflicts of interest, particularly in decision-making processes.
Investors should exercise caution and closely monitor ECO's financial disclosures and cash flow statements. It is advisable to wait for improved earnings quality metrics and clearer governance practices before considering an investment.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for ECO — hover nodes for intel, click to navigate