HRC
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 — HRC
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2017
HRC exhibits significant red flags indicating potential earnings manipulation, as evidenced by a Beneish M-Score of 1.8555, which exceeds the manipulation threshold of -1.78. The concerning earnings quality metrics, particularly a cash conversion score of 0.0, further amplify the risk of financial misrepresentation.
- Beneish M-Score of 1.8555 indicates likely manipulation.
- Cash conversion score of 0.0 suggests severe issues in converting earnings to cash.
- DSRI of 4.9844 indicates a significant increase in receivables relative to sales, which could signal aggressive revenue recognition.
- Receivables quality score of 100.0 indicates strong management of receivables.
- Accrual quality score of 95.2 suggests that the company has a good track record of managing accruals.
The ownership structure is heavily concentrated, with Tập đoàn Công nghiệp Cao su Việt Nam holding 55.1%, which may lead to governance risks and potential conflicts of interest, especially in a state-owned enterprise context.
Investors should exercise caution and conduct further due diligence, particularly regarding cash flow management and revenue recognition practices. Monitoring upcoming financial disclosures for transparency and consistency is crucial.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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> mapping common ownership for HRC — hover nodes for intel, click to navigate