KHD
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 — KHD
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
KHD exhibits several concerning financial metrics that suggest potential earnings manipulation, particularly indicated by a high DSRI of 2.7229 and SGI of 2.1894. However, the earnings quality score of 69.9/100, bolstered by perfect cash conversion and receivables metrics, provides some reassurance regarding cash flow integrity.
- High DSRI of 2.7229 indicates significant growth in receivables relative to sales, suggesting potential revenue recognition issues.
- SGI of 2.1894 indicates sales growth significantly outpacing industry norms, raising concerns about sustainability and possible overstatement of revenue.
- Earnings Quality Score of 69.9/100 reflects strong cash conversion and receivables management, with scores of 100.0/100 in both categories.
The concentrated ownership structure, with the top five shareholders holding over 80% of shares, raises governance risks as decision-making may lack independent oversight.
Investors should closely monitor KHD's revenue recognition practices and consider a deeper analysis of cash flow statements before making investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for KHD — hover nodes for intel, click to navigate