SBG
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 — SBG
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
SBG exhibits several concerning financial metrics, particularly a Beneish M-Score of -1.8451, indicating potential earnings manipulation. The low earnings quality score of 27.8/100, alongside high accruals and poor cash conversion, raises significant red flags regarding the reliability of reported earnings.
- Beneish M-Score of -1.8451, exceeding the manipulation threshold of -1.78.
- Earnings Quality Score of 27.8/100, with cash conversion at 0.0/100 and receivables at 0.0/100, indicating severe issues with cash flow and revenue recognition.
- SGAI at 2.5738 suggests aggressive spending on sales and marketing, which may not translate into revenue growth.
- DSRI of 1.4865 indicates that inventory levels are manageable relative to sales, which may suggest operational efficiency.
- DEPI of 0.9521 shows that the company is not overly aggressive in its depreciation policies, which could imply conservative asset valuation.
The dominant ownership by Siba Holdings at 55.6% may lead to potential conflicts of interest, particularly in decision-making processes that could affect minority shareholders. The concentration of ownership raises concerns about governance and transparency.
Investors should approach SBG with caution, closely monitoring future earnings reports and cash flow statements. It may be prudent to consider divesting or holding off on new investments until clearer signals of financial stability and governance improvements are observed.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for SBG — hover nodes for intel, click to navigate