HCI
ConstructionValuation Breakdown
Construction and industrial firms have characteristics of both cyclical businesses (lumpy project-based revenue) and growth companies (expanding order books). This model blends two approaches 50/50: EV/EBITDA valuation (captures current earning power relative to peers) and FCF-based DCF (captures future cash generation potential). If EV/EBITDA produces a negative value (debt exceeds enterprise value), only DCF is used.
Valuation Track Record
Retroactive intrinsic value vs actual close price — HCI
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
HCI exhibits several concerning financial metrics that suggest potential earnings manipulation, particularly indicated by its Beneish M-Score of -2.5223, which is below the manipulation threshold. The earnings quality score of 34.0/100, especially the low scores in cash conversion and receivables, raises additional concerns about the sustainability of reported earnings.
- Beneish M-Score of -2.5223 indicates potential earnings manipulation, significantly below the threshold of -1.78.
- Earnings Quality Score of 34.0/100, with particularly low cash conversion (40.0/100) and receivables (0.0/100) metrics, suggesting poor earnings quality.
- DSRI of 1.4044 indicates that inventory is increasing at a rate that may be justified by sales growth, suggesting operational growth.
- GMI of 0.7958 indicates that gross margins are relatively stable, which is a positive sign amidst other red flags.
The ownership structure shows significant concentration, with the largest shareholder holding 30.0% of shares. This concentration may lead to governance risks and potential conflicts of interest, particularly in decision-making processes.
Investors should exercise caution and conduct further due diligence, particularly focusing on cash flow and receivables management. Monitoring future earnings reports for consistency with cash flow will be crucial before considering any investment.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for HCI — hover nodes for intel, click to navigate