SMC
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 — SMC
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
SMC exhibits several concerning indicators of potential earnings manipulation, as evidenced by its Beneish M-Score of -1.8404, which is below the manipulation threshold of -1.78. The company's earnings quality score of 34.7/100, particularly low cash conversion and receivables metrics, further raises concerns about the sustainability of reported earnings.
- Beneish M-Score of -1.8404 indicates potential earnings manipulation, as it is below the threshold of -1.78.
- Earnings Quality Score of 34.7/100, with a cash conversion score of 0.0/100, suggests significant issues in converting earnings to cash.
- Revenue quality score of 99.1/100 indicates strong revenue recognition practices.
The ownership structure shows a concentration of shares among a few individuals and institutions, with Hanwa Company Limited holding 19.6%, which may lead to governance risks and potential conflicts of interest.
Investors should conduct further due diligence on SMC's financial practices and consider monitoring cash flow trends closely 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 SMC — hover nodes for intel, click to navigate