FRM
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 — FRM
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2020
The Beneish M-Score of -2.6647 suggests that FRM is not likely engaging in earnings manipulation, as it is well below the threshold of -1.78. However, the earnings quality metrics indicate potential concerns, particularly with revenue recognition and cash conversion, which could affect the sustainability of reported earnings.
- Earnings Quality Score of 71.2/100 shows weaknesses in revenue recognition (29.9/100) and cash conversion (50.0/100), indicating potential volatility in earnings.
- The SGI of 0.9283 suggests that sales growth is slowing, which may impact future revenue generation.
- A high eq_accrual score of 92.1/100 indicates strong accrual quality, suggesting that reported earnings are backed by actual economic activity.
- Strong institutional ownership with Tổng Công ty Nông Nghiệp Sài Gòn and Công ty Cổ Phần Nông Nghiệp Tlk holding a combined 48.9% may provide stability and confidence in management.
The significant institutional ownership (48.9%) reduces the risk of erratic decision-making by individual shareholders, but the presence of multiple individual shareholders could lead to potential conflicts in governance.
Investors should monitor the company's revenue recognition practices closely and assess the impact of slowing sales growth on future earnings. It may be prudent to maintain a cautious stance until improvements in cash conversion and revenue quality are observed.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for FRM — hover nodes for intel, click to navigate