HNM
ConsumerValuation Breakdown
A classic Discounted Cash Flow model built on Free Cash Flow (FCF), the actual cash a business generates after all operating expenses and capital expenditures. Future FCF is projected for 10 years with gradually decaying growth, then discounted back to today's value using WACC. This is the gold standard of intrinsic valuation: it values the company based on what it can actually deliver to shareholders, independent of market sentiment.
Valuation Track Record
Retroactive intrinsic value vs actual close price — HNM
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
HNM exhibits several concerning financial metrics, particularly a Beneish M-Score of -1.5395, which is above the manipulation threshold of -1.78, indicating potential earnings manipulation. Additionally, the earnings quality score of 51.7 suggests significant issues with cash conversion and revenue recognition.
- Beneish M-Score of -1.5395 indicates potential earnings manipulation, as it is above the threshold of -1.78.
- Earnings quality score of 51.7/100, particularly low cash conversion score of 7.8/100, raises concerns about the sustainability of reported earnings.
- Revenue quality score of 0.0/100 suggests that revenue recognition practices may be aggressive or misleading.
- DSRI of 1.8872 indicates that accounts receivable are growing faster than revenue, which could suggest aggressive revenue recognition practices but may also indicate strong sales growth.
- High eq_receivables score of 100.0/100 suggests that the company has effectively managed its receivables, which is a positive sign for liquidity.
The ownership structure is highly concentrated, with the top five shareholders holding 67% of the shares. This concentration can lead to potential governance issues and conflicts of interest, particularly in decision-making.
Investors should exercise caution and closely monitor HNM's financial disclosures and earnings reports. It may be prudent to wait for improved earnings quality metrics and clearer revenue recognition practices before considering an investment.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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