ITQ
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 — ITQ
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2020
The Beneish M-Score of -1.6969 indicates a low likelihood of earnings manipulation, as it is above the manipulation threshold of -1.78. However, the earnings quality metrics reveal significant weaknesses, particularly in revenue and margin recognition, which could pose risks in financial reporting.
- Earnings Quality Score of 75.0/100 indicates potential issues, especially with eq_margin and eq_revenue both at 0.0/100, suggesting significant concerns in revenue recognition practices.
- Beneish components such as DSRI (0.8577) and GMI (0.8760) suggest a stable financial condition, with low growth in receivables and inventory relative to sales.
The top shareholders are individual investors with relatively low ownership stakes, which may indicate a lack of concentrated control and potential governance issues. This dispersed ownership could lead to challenges in aligning interests among shareholders.
Investors should closely monitor the company's revenue recognition practices and consider conducting further due diligence on management's financial reporting. Given the moderate risk level, a cautious approach is recommended before making significant investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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