SGH
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 — SGH
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2024
SGH's Beneish M-Score of -2.7433 indicates a low likelihood of earnings manipulation, as it is well below the threshold of -1.78. However, the high SGI of 1.0732 and the low eq_revenue score of 5.1/100 suggest potential concerns regarding revenue growth sustainability and quality.
- SGI of 1.0732 indicates revenue growth that may not be sustainable.
- eq_revenue score of 5.1/100 suggests significant issues with revenue recognition.
- Earnings Quality Score of 82.1/100 indicates generally strong earnings quality.
- High eq_accrual score of 99.9/100 suggests effective management of accruals.
The ownership structure is concentrated, with the top shareholder holding 38.9%, which may lead to governance risks and potential conflicts of interest. However, institutional ownership is also present, providing some level of oversight.
Investors should closely monitor revenue recognition practices and consider the sustainability of growth before making investment decisions. A deeper analysis of cash flow metrics is recommended to assess the true financial health of SGH.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for SGH — hover nodes for intel, click to navigate