SHG
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.
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2024
SHG exhibits a concerning Beneish M-Score of -1.1212, indicating potential earnings manipulation risk, although it remains above the manipulation threshold of -1.78. The earnings quality score of 39.7 suggests significant weaknesses in revenue and margin recognition, which could impact investor confidence.
- GMI of 1.6880 indicates a deterioration in gross margin, suggesting potential revenue recognition issues.
- Earnings quality metrics show a score of 0.0/100 for both eq_margin and eq_revenue, highlighting severe concerns in profitability and revenue recognition.
- DSRI of 0.7470 indicates that accounts receivable are growing slower than revenue, which is a positive sign for cash flow.
- Top shareholders hold a concentrated ownership structure, with the largest shareholder holding 24.9%, which may align interests and reduce agency risk.
The concentrated ownership by individual shareholders (top 5 holding 90.3%) may lead to governance risks, as decisions may prioritize personal interests over minority shareholders.
Investors should conduct further due diligence, particularly focusing on revenue recognition practices and cash flow management, before considering an investment in SHG.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for SHG — hover nodes for intel, click to navigate