EGL
ConsumerValuation Breakdown
A classic Discounted Cash Flow model built on Free Cash Flow (FCF), the actual cash a business generates after all operating expenses and capital expenditures. Future FCF is projected for 10 years with gradually decaying growth, then discounted back to today's value using WACC. This is the gold standard of intrinsic valuation: it values the company based on what it can actually deliver to shareholders, independent of market sentiment.
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
EGL exhibits a Beneish M-Score of -2.9359, indicating a low likelihood of earnings manipulation, as it is well below the manipulation threshold of -1.78. However, the high DSRI and DEPI values suggest potential concerns regarding revenue recognition and asset depreciation, which could impact future earnings quality.
- DSRI of 1.3168 indicates that accounts receivable are growing faster than revenue, which could signal aggressive revenue recognition practices.
- DEPI of 1.4216 suggests that the company may be under-depreciating its assets, potentially inflating earnings.
- Earnings Quality Score of 78.7/100 indicates generally strong earnings quality, particularly with a cash conversion score of 100.0/100, suggesting effective cash flow management.
The ownership structure is heavily concentrated, with two institutions holding 90.5% of shares, which may lead to governance risks and limit minority shareholder influence.
Investors should monitor EGL's revenue recognition practices closely, particularly given the elevated DSRI. Consider a cautious approach, focusing on cash flow metrics and governance practices before making investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
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