HAP
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 — HAP
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -0.8448 suggests that HAP is not likely to be manipulating earnings, as it is well above the threshold of -1.78. However, the high DSRI of 3.6833 and poor earnings quality metrics indicate significant concerns regarding revenue recognition and overall financial health.
- DSRI of 3.6833 indicates that accounts receivable are growing significantly faster than revenue, suggesting potential issues with revenue recognition.
- Earnings Quality Score of 45.9/100, particularly low scores in receivables (0.0/100) and margins (0.0/100), highlight serious concerns about the sustainability of earnings.
- Cash conversion score of 100.0/100 suggests that cash flows are being generated effectively, which is a positive indicator of liquidity.
The top shareholders are primarily individual investors, with the largest holding at 22.4%. This concentrated ownership may lead to governance risks and potential conflicts of interest.
Investors should closely monitor HAP's revenue recognition practices and consider conducting further due diligence on its financial reporting. Given the elevated risk, a cautious approach is advised until clearer signals of financial stability emerge.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for HAP — hover nodes for intel, click to navigate