SAL
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 — SAL
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2019
The Beneish M-Score of -2.8195 indicates that SAL is not likely to be manipulating earnings, as it is below the threshold of -1.78. However, the earnings quality metrics reveal significant weaknesses, particularly in revenue recognition and profit margins, which could pose risks to financial stability.
- Low revenue quality score of 4.9/100 suggests potential issues in revenue recognition.
- Earnings margin score of 0.0/100 indicates no profitability, raising concerns about operational efficiency.
- Strong accrual quality score of 96.3/100 indicates effective management of accruals.
- DSRI of 0.7064 suggests that the company's receivables are not growing faster than sales, which is a positive sign.
The significant state ownership of 49.0% may lead to potential conflicts of interest and influence over financial reporting, impacting transparency. Institutional ownership is also substantial, which could provide some stability but may limit shareholder activism.
Investors should closely monitor SAL's revenue recognition practices and operational efficiency. It may be prudent to adopt a cautious approach and consider diversifying investments until clearer signals of financial health emerge.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for SAL — hover nodes for intel, click to navigate