L10
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 — L10
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
L10 exhibits a Beneish M-Score of -2.2888, indicating a low likelihood of earnings manipulation, as it is below the manipulation threshold of -1.78. However, the earnings quality metrics reveal significant concerns, particularly with cash conversion and revenue recognition, which could pose risks to financial stability.
- Earnings Quality Score of 54.3/100 indicates moderate risk, with a cash conversion score of 0.0/100 suggesting severe issues in converting earnings to cash.
- SGI of 1.3401 indicates aggressive growth, which may not be sustainable and could mask underlying financial weaknesses.
- Beneish M-Score of -2.2888 suggests low likelihood of earnings manipulation, providing some assurance to investors.
- High receivables score of 100.0/100 indicates effective management of receivables, which is a positive sign for liquidity.
The concentrated ownership structure, with the top two shareholders holding over 76% of shares, raises concerns about potential governance issues and lack of minority shareholder protections.
Investors should closely monitor cash flow performance and consider the sustainability of growth before making investment decisions. A deeper analysis of revenue recognition practices is also advisable.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
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