KCB
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 — KCB
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
KCB exhibits a Beneish M-Score of -3.5197, indicating a low likelihood of earnings manipulation. However, the earnings quality score of 73.6 suggests some concerns, particularly with revenue recognition and margin quality, which could pose risks in the context of Vietnamese accounting practices.
- The SGI of 1.0941 indicates that sales growth is outpacing the growth of receivables, which may signal aggressive revenue recognition.
- The eq_revenue score of 0.0/100 raises concerns about the reliability of reported revenue figures.
- A cash conversion score of 100.0/100 indicates strong cash flow generation relative to earnings, suggesting operational efficiency.
- The DSRI of 0.6132 indicates that inventory levels are well managed, reducing the risk of overstatement.
The majority ownership by Tổng Công ty Khoáng sản TKV (51.9%) suggests a stable control structure, but it may also lead to potential conflicts of interest in governance and decision-making.
Investors should closely monitor revenue recognition practices and consider conducting further due diligence on management's integrity, while also leveraging the strong cash flow metrics as a positive indicator.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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