STH
TechnologyValuation Breakdown
Technology companies combine high growth potential with the risk of overvaluation. This model blends DCF (60% weight, capturing long-duration growth) with a P/E sanity check (40% weight, capping speculative excess). The DCF uses the slowest growth decay (0.05) recognizing that tech companies can sustain competitive advantages longer. The P/E component applies a dynamic ceiling: max P/E = min(growth% x 1.5, 30), preventing runaway valuations.
Valuation Track Record
Retroactive intrinsic value vs actual close price — STH
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of 2.808 indicates a high likelihood of earnings manipulation, particularly concerning the significant SGI of 10.5718, which suggests aggressive revenue growth. However, the earnings quality score of 59.1 reflects some strengths, particularly in cash conversion and receivables management.
- Beneish M-Score of 2.808 exceeds the manipulation threshold of -1.78, indicating potential earnings manipulation.
- SGI of 10.5718 suggests aggressive growth that may not be sustainable, raising concerns about revenue recognition practices.
- Low eq_margin score of 10.6/100 indicates potential issues with profitability relative to revenue.
- High eq_cash_conv score of 100.0/100 indicates strong cash flow generation relative to earnings.
- Strong institutional ownership with top shareholders holding over 70% of shares, suggesting potential stability and oversight.
The concentrated ownership structure, with the top four shareholders holding over 80%, may lead to governance risks and potential conflicts of interest, particularly if management decisions favor major shareholders over minority interests.
Investors should closely monitor revenue growth and earnings quality metrics while considering a cautious approach due to the elevated risk of manipulation. Engaging with management regarding transparency and governance practices is advisable.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for STH — hover nodes for intel, click to navigate