PHC
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 — PHC
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -2.5882 indicates a low likelihood of earnings manipulation, as it is well below the threshold of -1.78. However, the earnings quality metrics reveal significant weaknesses, particularly in revenue recognition, which could pose risks in financial reporting.
- Earnings Quality Score of 73.4/100 is decent, but the eq_margin score of 0.0/100 indicates a complete lack of profitability in margins, raising concerns about sustainable earnings.
- The SGI of 0.9857 suggests that sales growth is slowing, which could indicate potential issues with demand or market position.
- The eq_accrual score of 99.3/100 and eq_cash_conv score of 100.0/100 indicate strong cash conversion and accrual quality, suggesting that reported earnings are backed by actual cash flows.
The top shareholders are primarily individuals, which may lead to concentrated control and potential governance issues. However, the presence of an institutional investor (10.1%) may provide some level of oversight.
Investors should monitor revenue recognition practices closely and consider the implications of the low margin score. A thorough review of the company's operational efficiency and market strategy is recommended before making investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
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