TNM
ConstructionValuation Track Record
Retroactive intrinsic value vs actual close price — TNM
Earnings Quality
Fiscal year 2016
Financial Forensics
Beneish M-Score · 2016
The Beneish M-Score of -1.2453 indicates a low likelihood of earnings manipulation, as it is above the threshold of -1.78. However, concerning earnings quality metrics, the company shows significant weaknesses, particularly in cash conversion and receivables, which could raise concerns about the sustainability of reported earnings.
- Earnings Quality Score of 21.5/100 indicates poor earnings quality, particularly with cash conversion at 0.0/100, suggesting potential liquidity issues.
- High DSRI of 3.1550 indicates a significant increase in receivables relative to sales, which may signal aggressive revenue recognition practices.
- Beneish M-Score of -1.2453 is above the manipulation threshold, suggesting a lower risk of earnings manipulation.
- The company has a relatively low GMI of 0.1962, indicating a lower likelihood of gross margin deterioration.
The ownership structure is fragmented, with the largest shareholder holding only 12.8%, which may lead to governance challenges and potential conflicts of interest among individual shareholders.
Investors should closely monitor cash flow and receivables trends, as the current earnings quality metrics raise concerns. It may be prudent to adopt a cautious approach until there is evidence of improved cash conversion and overall earnings sustainability.
Generated by AI based on quantitative data. Not financial advice.