LMI
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 — LMI
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
LMI exhibits several warning signs of potential earnings manipulation, as indicated by its Beneish M-Score of -1.8915, which exceeds the manipulation threshold. While the earnings quality score of 65.9 suggests some strengths, the low cash conversion and revenue metrics raise concerns about the sustainability of reported earnings.
- Beneish M-Score of -1.8915 indicates potential manipulation, exceeding the threshold of -1.78.
- Earnings quality cash conversion score of 49.1/100 is low, suggesting issues with converting earnings into cash.
- Revenue quality score of 0.0/100 raises significant concerns about the reliability of reported revenues.
- High receivables quality score of 100.0/100 indicates strong management of receivables.
- Accrual quality score of 93.8/100 suggests that the company is effectively managing its accruals.
The ownership structure shows significant concentration, with the top shareholder holding 22.8%. This could lead to potential governance issues and conflicts of interest, especially given the presence of state-owned enterprises (SOEs) in the shareholder mix.
Investors should exercise caution and conduct further due diligence, particularly focusing on cash flow statements and revenue recognition practices. Consider monitoring for any changes in management or ownership that could impact governance and transparency.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for LMI — hover nodes for intel, click to navigate