EMG
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 — EMG
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
The Beneish M-Score of -2.6233 suggests that EMG is not exhibiting signs of earnings manipulation, as it is below the threshold of -1.78. However, the low earnings quality metrics, particularly the receivables and revenue scores, indicate potential concerns regarding revenue recognition and cash flow sustainability.
- Low receivables quality score of 21.2/100 raises concerns about the collectability of accounts receivable, which could indicate aggressive revenue recognition practices.
- SGAI at 1.2489 suggests increased selling, general, and administrative expenses relative to sales, which may impact profitability.
- High earnings quality score of 74.4/100, particularly the cash conversion score of 100.0/100, indicates strong cash flow generation relative to earnings.
- Beneish M-Score of -2.6233 is well below the manipulation threshold, suggesting a lower likelihood of accounting irregularities.
The significant ownership by Tổng Công ty cơ điện xây dựng at 49.6% indicates a concentrated control, which may lead to potential conflicts of interest and reduced minority shareholder influence.
Monitor the company's receivables and revenue recognition practices closely, and consider engaging with management regarding their strategies for improving earnings quality. Given the ownership structure, ensure that any investment aligns with broader governance and risk management practices.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for EMG — hover nodes for intel, click to navigate