NKG
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 — NKG
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
NKG exhibits several concerning indicators of potential earnings manipulation, particularly with a Beneish M-Score of -1.7425, which is close to the manipulation threshold. While the earnings quality score of 54.1 suggests some strengths, the low scores in receivables and revenue raise significant concerns about the reliability of reported earnings.
- Beneish M-Score of -1.7425, indicating potential earnings manipulation as it is close to the threshold of -1.78.
- Earnings quality metrics show 0.0/100 for eq_receivables and eq_revenue, suggesting possible issues with revenue recognition and collection.
- High cash conversion score of 100.0/100 indicates strong cash flow generation relative to earnings.
- SGI of 0.7185 suggests that sales growth is under control, which could indicate operational stability.
The ownership structure is relatively fragmented, with the largest shareholder holding only 15.9%, which may lead to governance challenges and potential misalignment of interests among shareholders.
Investors should conduct further due diligence on NKG's financial practices and consider monitoring future earnings reports closely for signs of improvement or further deterioration in earnings quality.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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