SRF
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 — SRF
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -1.0872 indicates that SRF is not likely to be manipulating earnings, as it is well above the threshold of -1.78. However, the earnings quality score of 37.0/100, particularly low cash conversion and revenue metrics, raises concerns about the sustainability of reported earnings.
- Earnings Quality Score of 37.0/100 indicates significant issues with cash conversion (0.0/100) and revenue recognition (0.0/100), suggesting potential earnings manipulation or aggressive accounting practices.
- The GMI of 2.0599 suggests that gross margins are deteriorating, which could indicate operational challenges or pricing pressures.
- The DSRI of 0.9325 indicates that accounts receivable are growing at a slower rate than sales, which is a positive sign for cash flow management.
- Top institutional shareholders hold a significant portion (58.0%) of the company, which may provide stability and oversight.
The ownership structure is heavily concentrated among a few institutional investors, which can lead to potential conflicts of interest and reduced shareholder activism. However, this concentration can also provide stability.
Investors should closely monitor SRF's earnings quality metrics and operational performance, particularly cash conversion and revenue recognition. Consider a cautious approach, potentially waiting for improved earnings quality before making significant investments.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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> mapping common ownership for SRF — hover nodes for intel, click to navigate