LMC
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 — LMC
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2022
LMC exhibits significant red flags indicating potential earnings manipulation, as evidenced by a Beneish M-Score of 24.8282, well above the manipulation threshold of -1.78. The company's earnings quality score of 32.3/100 further highlights concerns regarding the reliability of reported earnings.
- Beneish M-Score of 24.8282 indicates a high likelihood of earnings manipulation.
- DSRI of 30.7495 suggests aggressive revenue recognition practices.
- Earnings Quality Score of 32.3/100 reflects poor accruals and revenue recognition metrics.
- Cash conversion rate of 100.0/100 indicates strong cash flow management despite low earnings quality.
The ownership structure shows a concentration of shares among individual shareholders, which may lead to governance risks and potential conflicts of interest, especially in a market with prevalent state-owned enterprises (SOEs).
Investors should exercise caution and conduct further due diligence on LMC, particularly focusing on cash flow sustainability and governance practices before considering any investment.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for LMC — hover nodes for intel, click to navigate