SKG
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 — SKG
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
SKG's Beneish M-Score of -2.912 indicates a lower likelihood of earnings manipulation, as it is well below the threshold of -1.78. However, the Earnings Quality Score of 83.2 suggests some concerns, particularly in revenue recognition, which scored 0.0/100.
- Revenue Quality: The revenue quality score of 0.0/100 raises concerns about the sustainability of reported revenues.
- Earnings Margin: The earnings margin score of 63.0/100 is relatively low, indicating potential issues with profitability.
- Strong Cash Conversion: The cash conversion score of 100.0/100 indicates effective management of cash flows.
- Low DSRI: The DSRI of 0.9436 suggests that inventory management is efficient, which is a positive indicator.
The ownership structure is concentrated among a few individuals, with the top five shareholders holding over 54% of the company. This concentration could lead to governance risks, as decisions may not reflect broader shareholder interests.
Investors should closely monitor revenue recognition practices and consider the implications of concentrated ownership. A deeper analysis of cash flow sustainability and profitability metrics is recommended before making investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for SKG — hover nodes for intel, click to navigate