GVT
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 — GVT
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
GVT exhibits a Beneish M-Score of -2.2342, indicating a lower likelihood of earnings manipulation, as it falls below the threshold of -1.78. However, the earnings quality metrics reveal concerns, particularly with a low revenue quality score of 0.0, suggesting potential issues in revenue recognition.
- Revenue quality score of 0.0 indicates potential aggressive revenue recognition practices.
- Earnings quality margin at 47.9/100 suggests that while cash conversion is strong, profit margins are under pressure.
- Earnings Quality Score of 79.1/100 indicates overall good earnings quality.
- Cash conversion metrics are strong, with eq_cash_conv at 100.0/100, suggesting effective cash management.
The ownership structure is highly 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 revenue recognition practices and consider a deeper analysis of the company's financial statements. Given the elevated risk level, a cautious approach is advised until further clarity on revenue quality is obtained.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
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