HHP
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 — HHP
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
HHP exhibits a Beneish M-Score of -2.5482, indicating a low likelihood of earnings manipulation. However, the earnings quality metrics reveal significant weaknesses in cash conversion and revenue quality, which warrant caution.
- Earnings Quality Score of 61.2/100, particularly low cash conversion at 0.0/100, suggests potential issues in actual cash flows relative to reported earnings.
- SGI of 1.6701 indicates aggressive growth that may not be supported by underlying fundamentals, raising concerns about sustainability.
- Beneish M-Score of -2.5482 is well below the manipulation threshold of -1.78, suggesting a lower risk of earnings manipulation.
- Strong receivables quality score of 100.0/100 indicates effective management of accounts receivable, which is a positive signal for revenue collection.
The ownership structure is relatively fragmented with no single shareholder holding a majority stake, which may reduce the risk of controlling shareholder influence but can lead to governance challenges.
Investors should closely monitor cash flow performance and revenue sustainability, considering a cautious approach given the elevated SGI and low cash conversion metrics.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for HHP — hover nodes for intel, click to navigate