L18
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 — L18
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2024
L18 exhibits an elevated risk of earnings manipulation as indicated by its Beneish M-Score of -2.1944, which is below the manipulation threshold of -1.78. Despite a relatively strong earnings quality score of 54.1, significant concerns arise from low cash conversion and revenue metrics.
- Beneish M-Score of -2.1944 indicates potential earnings manipulation, as it is below the threshold of -1.78.
- Earnings quality metrics show an alarming 0.0/100 for both eq_margin and eq_revenue, suggesting severe issues with profitability and revenue recognition.
- A DSRI of 0.6731 indicates that the company is managing its receivables effectively, which could be a positive sign in terms of sales growth relative to accounts receivable.
- The eq_accrual score of 92.1/100 suggests that the company is generating earnings that are less reliant on accruals, which is a positive indicator of earnings quality.
The ownership structure is heavily concentrated, with Bùi Thanh Tuyên holding 50.6%, which raises concerns about governance and potential conflicts of interest. The presence of institutional investors at 9.0% may provide some oversight, but overall risk remains high due to individual dominance.
Investors should exercise caution and conduct further due diligence before considering an investment in L18, particularly focusing on cash flow and revenue recognition practices. Monitoring upcoming financial disclosures for improvements in earnings quality metrics is advisable.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for L18 — hover nodes for intel, click to navigate