
SDP
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 — SDP
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
The Beneish M-Score of -7.9252 indicates a strong likelihood of earnings manipulation, significantly below the threshold of -1.78. Coupled with a low Earnings Quality Score of 10.3/100, the financial health of SDP raises serious concerns.
- Beneish M-Score of -7.9252 indicates likely manipulation, well below the threshold of -1.78.
- Earnings Quality Score of 10.3/100, with eq_receivables, eq_margin, and eq_revenue all at 0.0/100, suggests severe issues in revenue recognition and cash flow quality.
- SGAI of 13.5206 indicates excessive growth in selling, general, and administrative expenses relative to revenue, which could signal inefficiencies or potential misreporting.
- DSRI of 1.1877 suggests that the company is managing its inventory levels relatively well compared to sales, but this is overshadowed by other negative metrics.
- LVGI of 1.1021 indicates a slight increase in sales growth relative to the previous period, which could suggest some operational strength.
The ownership structure is dominated by individual shareholders, with the largest holding at 12.5%, which may lead to governance issues and lack of accountability. The low institutional ownership (2.2%) raises concerns about external oversight.
Given the high risk of earnings manipulation and poor earnings quality, it is advisable to approach SDP with caution. Investors should consider avoiding this stock until clearer signs of financial stability and transparency emerge.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for SDP — hover nodes for intel, click to navigate