L12
ConstructionValuation Breakdown
Construction and industrial firms have characteristics of both cyclical businesses (lumpy project-based revenue) and growth companies (expanding order books). This model blends two approaches 50/50: EV/EBITDA valuation (captures current earning power relative to peers) and FCF-based DCF (captures future cash generation potential). If EV/EBITDA produces a negative value (debt exceeds enterprise value), only DCF is used.
Valuation Track Record
Retroactive intrinsic value vs actual close price — L12
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
L12 exhibits a Beneish M-Score of -2.7119, indicating a low likelihood of earnings manipulation. However, the high SGI of 1.6683 and low revenue quality score of 0.0/100 raise concerns about growth sustainability and revenue recognition practices.
- SGI of 1.6683 suggests aggressive growth that may not be supported by actual revenue generation.
- Revenue quality score of 0.0/100 indicates potential issues with revenue recognition, posing a risk to financial integrity.
- Beneish M-Score of -2.7119 is well below the manipulation threshold of -1.78, suggesting a lower likelihood of earnings manipulation.
- Earnings Quality Score of 68.3/100 reflects decent overall earnings quality, particularly strong cash conversion at 100.0/100.
The ownership structure is relatively concentrated, with the largest shareholder holding 23.3%. This concentration may lead to governance risks, particularly if decisions favor the majority shareholder over minority interests.
Investors should closely monitor revenue recognition practices and growth sustainability. Consider a cautious approach to investment until clearer signals of revenue stability and governance improvements are observed.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for L12 — hover nodes for intel, click to navigate