SCO
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 — SCO
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2016
The Beneish M-Score of 0.9338 indicates a high likelihood of earnings manipulation, as it exceeds the threshold of -1.78. Additionally, the significant SGI of 5.1933 suggests aggressive revenue growth that may not be sustainable, raising concerns about the company's financial integrity.
- Beneish M-Score of 0.9338 indicates potential earnings manipulation, exceeding the threshold of -1.78.
- SGI of 5.1933 suggests unsustainable revenue growth, which could be a sign of inflated financial reporting.
- Earnings Quality Score of 68.5/100 indicates reasonable earnings quality, particularly strong cash conversion and receivables management.
The ownership structure is heavily concentrated, with two state-owned enterprises holding a combined 92.8% stake, which raises potential governance risks and limits minority shareholder influence.
Investors should exercise caution and conduct further due diligence, particularly focusing on revenue recognition practices and the sustainability of growth, before considering any investment in SCO.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for SCO — hover nodes for intel, click to navigate