SEP
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 — SEP
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -2.319 indicates that SEP is unlikely to be engaging in earnings manipulation, as it is well below the threshold of -1.78. However, the low Earnings Quality Score of 39.0/100, particularly the zero scores in cash conversion and margin metrics, raises concerns about the sustainability of reported earnings.
- Earnings Quality Score of 39.0/100 indicates poor earnings quality, with eq_cash_conv and eq_margin both at 0.0/100, suggesting potential issues with cash flow and profit margins.
- Beneish M-Score of -2.319 suggests a lower likelihood of earnings manipulation, which is a positive signal for investors.
The ownership structure is heavily influenced by state and individual shareholders, with the largest shareholder being a state entity (22.6%). This could lead to potential conflicts of interest and influence over corporate governance.
Investors should closely monitor cash flow metrics and earnings sustainability before making significant investments in SEP, given the elevated risk profile. It may be prudent to wait for improvements in earnings quality before increasing exposure.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for SEP — hover nodes for intel, click to navigate