NSH
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 — NSH
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -2.4288 indicates that NSH is not likely to be manipulating earnings, as it falls below the threshold of -1.78. However, the earnings quality score of 49.4/100, particularly low cash conversion and revenue metrics, raises concerns about the sustainability of reported earnings.
- Earnings Quality Score of 49.4/100, with 0.0/100 for eq_cash_conv and eq_revenue, indicating severe issues with cash flow and revenue recognition.
- SGAI of 1.5121 suggests aggressive spending on sales and marketing relative to revenue growth, which may not be sustainable.
- Beneish M-Score of -2.4288 indicates low likelihood of earnings manipulation.
- High receivables score of 100.0/100 suggests effective management of accounts receivable.
The top shareholder, a state-owned enterprise, holds 24.6% of NSH, which may influence company decisions and provide stability. However, the presence of multiple individual shareholders could lead to potential conflicts in governance.
Investors should closely monitor cash flow and revenue recognition practices, given the low scores in these areas. It may be prudent to adopt a cautious approach until there are signs of improvement in earnings quality metrics.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for NSH — hover nodes for intel, click to navigate