TVG
ConstructionValuation Breakdown
Construction and industrial firms have characteristics of both cyclical businesses (lumpy project-based revenue) and growth companies (expanding order books). This model blends two approaches 50/50: EV/EBITDA valuation (captures current earning power relative to peers) and FCF-based DCF (captures future cash generation potential). If EV/EBITDA produces a negative value (debt exceeds enterprise value), only DCF is used.
Valuation Track Record
Retroactive intrinsic value vs actual close price — TVG
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2019
The Beneish M-Score of -2.539 indicates a low likelihood of earnings manipulation, as it is well below the threshold of -1.78. However, the earnings quality score of 57.1/100, particularly low cash conversion and revenue metrics, raises concerns about the sustainability of reported earnings.
- Earnings Quality Score of 57.1/100, with cash conversion at only 40.0/100, indicating potential issues in converting earnings to cash.
- Low revenue quality score of 23.1/100 suggests that reported revenues may not be reliable.
- Beneish M-Score of -2.539 suggests a low likelihood of earnings manipulation.
- High accrual quality score of 94.6/100 indicates strong management of accruals.
The concentrated ownership structure, with the top four shareholders holding over 94% of the shares, poses a risk of governance issues and potential conflicts of interest.
Investors should closely monitor cash flow metrics and revenue recognition practices. Consider a cautious approach until improvements in earnings quality and cash conversion are demonstrated.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
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