LO5
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 — LO5
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -2.6735 indicates that LO5 is not currently exhibiting signs of earnings manipulation, as it is below the threshold of -1.78. However, the low Earnings Quality Score of 30.8/100, particularly concerning cash conversion and revenue metrics, raises concerns about the sustainability of reported earnings.
- Earnings Quality Score of 30.8/100 indicates poor earnings quality, particularly with eq_cash_conv at 2.6/100 and eq_receivables at 0.0/100, suggesting potential issues with cash flow and revenue recognition.
- Beneish M-Score of -2.6735 is below the manipulation threshold of -1.78, indicating a lower likelihood of earnings manipulation.
The dominant ownership by Tổng Công ty lắp máy Việt Nam at 51.0% suggests a strong influence on company decisions, which may limit minority shareholder rights and increase risks of conflicts of interest.
Investors should closely monitor LO5's cash flow and revenue recognition practices, and consider engaging with management regarding improvements in earnings quality metrics before making significant investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for LO5 — hover nodes for intel, click to navigate