LCM
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 — LCM
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of 0.8178 significantly exceeds the threshold of -1.78, indicating a high likelihood of earnings manipulation. Coupled with a low Earnings Quality Score of 37.0/100, particularly poor metrics in revenue and margin quality, LCM presents substantial red flags for investors.
- Beneish M-Score of 0.8178 indicates potential earnings manipulation.
- Earnings Quality Score of 37.0/100, with revenue and margin quality both at 0.0/100, suggests severe issues in earnings sustainability.
- DSRI of 1.7835 indicates significant inventory growth relative to sales, raising concerns about overstatement of revenue.
- Receivables quality score of 100.0/100 suggests effective management of receivables.
- SGI of 1.3454 indicates potential growth in sales, although this must be viewed cautiously given other red flags.
The ownership structure is highly fragmented with no single shareholder holding a significant stake, which may lead to governance challenges and lack of accountability.
Investors should exercise caution and closely monitor LCM's financial disclosures for signs of improvement in earnings quality. Consider waiting for clearer signals of financial stability 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 LCM — hover nodes for intel, click to navigate