PAT
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 — PAT
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
PAT exhibits several concerning financial metrics that suggest potential earnings manipulation, particularly indicated by a Beneish M-Score of -1.583, which is close to the manipulation threshold. Despite a reasonable earnings quality score of 68.4, the high DSRI and low receivables quality raise significant red flags regarding revenue recognition practices.
- Beneish M-Score of -1.583, indicating potential earnings manipulation as it is close to the threshold of -1.78.
- DSRI of 2.3222, significantly above 1, suggesting potential issues with inventory management and revenue recognition.
- EQ Receivables score of 21.6/100, indicating poor quality in accounts receivable, which could suggest aggressive revenue recognition.
- Earnings Quality Score of 68.4/100, indicating a generally acceptable level of earnings quality.
- High EQ Margin score of 100.0/100, suggesting strong profitability relative to revenues.
The concentrated ownership structure, with 51.0% held by a single institutional investor, poses risks of governance issues and potential conflicts of interest, particularly in decision-making processes.
Investors should conduct further due diligence on PAT's revenue recognition practices and monitor any changes in the ownership structure. Caution is advised when considering investment due to elevated risks of financial manipulation.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for PAT — hover nodes for intel, click to navigate