TTT
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 — TTT
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
The Beneish M-Score of -2.6438 indicates that TTT is unlikely to be manipulating earnings, as it is well below the threshold of -1.78. However, the earnings quality metrics reveal significant weaknesses, particularly in cash conversion and revenue recognition, which could pose risks to financial stability.
- Earnings Quality Score of 69.0/100 suggests moderate concerns, particularly with a cash conversion score of only 44.9/100, indicating potential issues in translating earnings into actual cash flow.
- The revenue quality score of 0.0/100 raises significant concerns about the reliability of reported revenues, which could indicate aggressive accounting practices or revenue recognition issues.
- The DSRI of 0.8337 suggests that accounts receivable are well managed relative to sales, indicating that the company is not overly reliant on credit sales.
- The GMI of 0.5750 and AQI of 0.6049 indicate that while there are some weaknesses, the overall gross margin and accrual quality are relatively stable.
The concentrated ownership structure, with the top three institutional shareholders holding a combined 72.5%, may lead to potential governance issues, as decisions may favor the interests of a few over minority shareholders.
Investors should closely monitor TTT's cash flow performance and revenue recognition practices. Consider a cautious approach to investment until there is clearer evidence of improved earnings quality and cash conversion.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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