TKU
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 — TKU
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -1.4088 indicates a low likelihood of earnings manipulation, as it is above the threshold of -1.78. However, the high DSRI of 2.0731 and low scores in receivables and revenue quality raise concerns about revenue recognition practices and overall earnings quality.
- DSRI of 2.0731 suggests significant growth in receivables relative to sales, indicating potential revenue recognition issues.
- Earnings Quality Score of 59.0/100, particularly low scores in receivables (0.0/100) and revenue (7.2/100), signal potential concerns in revenue sustainability.
- Strong cash conversion score of 100.0/100 indicates effective cash flow management despite other weaknesses.
- Beneish M-Score of -1.4088 suggests a lower risk of earnings manipulation compared to peers.
The ownership structure is highly concentrated, with Rich International Holding owning 84.5%, which may lead to governance risks and potential misalignment with minority shareholder interests.
Investors should closely monitor revenue recognition practices and consider conducting further due diligence on cash flow sustainability 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 TKU — hover nodes for intel, click to navigate