LM3
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.
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
The Beneish M-Score of 11.0173 significantly exceeds the manipulation threshold of -1.78, indicating a high likelihood of earnings manipulation. Coupled with an Earnings Quality Score of only 23.6, this raises serious concerns about the reliability of reported financials.
- Beneish M-Score of 11.0173 indicates strong likelihood of earnings manipulation.
- Earnings Quality Score of 23.6/100, with 0.0/100 in cash conversion, receivables, margin, and revenue metrics, suggests severe quality issues in earnings.
- The DSRI of 2.2478 indicates that inventory growth is significantly higher than revenue growth, which could suggest potential future revenue recognition issues.
The ownership structure is concentrated among a few individuals, with the largest shareholder holding 15.1%. This concentration can lead to governance risks and potential conflicts of interest.
Investors should exercise caution and consider divesting or avoiding LM3 due to high manipulation risk and poor earnings quality. Further due diligence is recommended to assess the sustainability of its financial practices.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
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