STW
UtilitiesValuation Breakdown
The Dividend Discount Model values a stock based on its future dividend payments, discounted to present value. The 3-stage variant captures three phases of a company's life: high growth (years 1-3), a transition period where growth declines linearly (years 4-6), and a terminal stage of stable, perpetual growth (year 7+). As John D. Rockefeller said: "The only thing that gives me pleasure is to see my dividends coming in."
Valuation Track Record
Retroactive intrinsic value vs actual close price — STW
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2017
The Beneish M-Score of -3.2493 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 accruals and receivables, which may suggest potential issues in financial reporting.
- DSRI of 1.5160 indicates that the company has a higher ratio of receivables to sales, which may signal aggressive revenue recognition practices.
- Earnings quality score of 69.1/100 is decent, but an eq_accrual of 18.6/100 is alarmingly low, suggesting potential overstatement of earnings.
- The DEPI of 2.5876 indicates that the company may be experiencing declining profitability, which could pressure future earnings.
- The eq_cash_conv score of 100.0/100 indicates strong cash conversion, suggesting that the company is able to convert its earnings into cash effectively.
- SGI of 1.1006 shows that the company is experiencing sales growth, which is a positive indicator in the context of market expansion.
The ownership structure is heavily concentrated, with 49.0% owned by local government entities, which may lead to potential conflicts of interest and lack of accountability. This concentration could also pose risks related to political influence on corporate governance.
Investors should closely monitor the company's financial reporting practices and consider the implications of its ownership structure. A cautious approach is advised, focusing on cash flow performance and potential changes in governance.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
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