L35
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 — L35
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
L35 exhibits several concerning indicators of potential earnings manipulation, particularly highlighted by its Beneish M-Score of -2.4931, which suggests a lower risk of manipulation. However, the earnings quality score of 36.1/100, combined with poor cash conversion metrics, raises significant concerns about the sustainability of reported earnings.
- Beneish M-Score of -2.4931 indicates lower risk of manipulation, but DSRI of 1.4894 suggests potential issues with inventory management.
- Earnings Quality Score of 36.1/100, particularly low cash conversion (23.1/100) and receivables (0.0/100), raises concerns about the quality of earnings.
- High accrual score of 97.3/100 indicates that reported earnings are largely based on actual transactions rather than accounting adjustments.
The significant ownership by Tổng Công ty lắp máy Việt Nam (51.0%) suggests a strong influence on corporate governance, which could be a double-edged sword in terms of accountability and transparency.
Investors should closely monitor L35's cash flow performance and consider the implications of its ownership structure on governance. A cautious approach is advised, potentially waiting for improved earnings quality metrics before making significant investments.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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> mapping common ownership for L35 — hover nodes for intel, click to navigate