SHN
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 — SHN
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -2.9181 indicates a low likelihood of earnings manipulation, as it is well below the threshold of -1.78. However, the earnings quality metrics reveal significant concerns, particularly in revenue recognition and margin quality, which may pose risks to future performance.
- Earnings Quality Score of 66.5/100 indicates potential issues, especially with eq_margin at 9.7/100 and eq_revenue at 21.7/100, suggesting weak profitability and revenue recognition.
- SGAI at 1.6192 indicates aggressive spending on sales and marketing, which may not translate into corresponding revenue growth.
- DSRI of 0.8864 suggests that the company is managing its inventory efficiently relative to sales, indicating potential operational strength.
- High eq_cash_conv score of 100.0/100 reflects strong cash conversion, which is a positive indicator of liquidity.
The ownership structure is fragmented with no single shareholder holding a significant stake, which may lead to governance challenges and lack of strategic direction.
Investors should closely monitor the company's revenue recognition practices and margin improvements while considering the strong cash conversion as a positive factor. A cautious approach is advised until clearer operational efficiencies are demonstrated.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for SHN — hover nodes for intel, click to navigate