LM7
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 — LM7
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2020
The Beneish M-Score of -2.3216 indicates a low likelihood of earnings manipulation, as it is below the threshold of -1.78. However, the earnings quality score of 47.5/100 reveals significant concerns, particularly in cash conversion and revenue recognition, which could signal underlying financial issues.
- Earnings Quality Score of 47.5/100, particularly low cash conversion at 27.3/100, indicating potential liquidity issues.
- SGI at 0.9921 suggests stagnant sales growth, which could raise concerns about future revenue generation.
- Beneish M-Score of -2.3216 is well below the manipulation threshold, suggesting a lower risk of earnings manipulation.
- DSRI at 0.9681 indicates that inventory growth is in line with sales, which is a positive sign of operational efficiency.
With 51.0% ownership by Tổng Công ty lắp máy Việt Nam, there is a significant concentration of control, which may lead to governance risks and potential conflicts of interest.
Investors should closely monitor cash flow metrics and revenue recognition practices. Consider a cautious approach, potentially waiting for improved earnings quality indicators before making significant investments.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for LM7 — hover nodes for intel, click to navigate