LUT
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.
Valuation Track Record
Retroactive intrinsic value vs actual close price — LUT
Earnings Quality
Fiscal year 2023
Financial Forensics
Beneish M-Score · 2021
LUT exhibits several concerning financial metrics, particularly with a Beneish M-Score of -2.028, indicating a potential for earnings manipulation. The earnings quality score of 51.2/100, coupled with low scores in receivables and revenue metrics, raises further concerns about the sustainability of reported earnings.
- Beneish M-Score of -2.028, indicating potential earnings manipulation as it is below the threshold of -1.78.
- DSRI at 1.8478 suggests significant increases in receivables relative to sales, which could indicate aggressive revenue recognition.
- SGAI at 2.9752 indicates that sales growth is outpacing general and administrative expenses, which may not be sustainable.
- High accrual quality score of 95.5/100 suggests that earnings are being recognized in a manner consistent with cash flows.
- Cash conversion score of 100.0/100 indicates strong cash flow generation relative to earnings, which is a positive sign.
The ownership structure is heavily concentrated, with the top shareholder holding 29.0%. This concentration can lead to governance risks, as decisions may favor the interests of a few individuals over minority shareholders.
Investors should approach LUT with caution, closely monitoring future earnings reports and cash flow statements. It may be prudent to wait for clearer signals of financial stability and governance improvements before considering an investment.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for LUT — hover nodes for intel, click to navigate