NHV
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 — NHV
Earnings Quality
Fiscal year 2021
Financial Forensics
Beneish M-Score · 2015
NHV exhibits several concerning financial metrics that suggest potential earnings manipulation, particularly indicated by its high Sales Growth Index (SGI) and low Total Accruals to Total Assets (TATA). However, the Beneish M-Score of -1.1567 remains below the manipulation threshold, indicating that while caution is warranted, outright fraud is not definitively indicated.
- SGI of 2.4829 suggests aggressive revenue growth that may not be sustainable.
- Earnings Quality Score of 43.5/100 indicates below-average earnings quality, particularly concerning the cash conversion metric at 0.0/100.
- Receivables quality score of 100.0/100 indicates strong management of receivables, which is a positive sign for cash flow sustainability.
The ownership structure is fragmented with no single shareholder holding a controlling stake, which may mitigate risks associated with potential conflicts of interest. However, the significant individual stakes could lead to coordinated actions that may not align with minority shareholder interests.
Investors should closely monitor NHV's revenue growth trends and earnings quality metrics. It may be prudent to adopt a cautious investment approach or consider waiting for improved earnings quality before making significant commitments.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for NHV — hover nodes for intel, click to navigate