UCT
ConsumerValuation Breakdown
A classic Discounted Cash Flow model built on Free Cash Flow (FCF), the actual cash a business generates after all operating expenses and capital expenditures. Future FCF is projected for 10 years with gradually decaying growth, then discounted back to today's value using WACC. This is the gold standard of intrinsic valuation: it values the company based on what it can actually deliver to shareholders, independent of market sentiment.
Valuation Track Record
Retroactive intrinsic value vs actual close price — UCT
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2016
UCT exhibits several concerning indicators of potential earnings manipulation, as evidenced by its Beneish M-Score of -2.8721, significantly below the manipulation threshold. While the ownership structure indicates strong state control, which can provide stability, the low earnings quality score and poor cash conversion metrics raise significant red flags.
- Beneish M-Score of -2.8721 indicates potential earnings manipulation, well below the threshold of -1.78.
- Earnings Quality Score of 35.2/100, with cash conversion at 0.0/100, suggests severe issues in converting earnings to cash.
- SGAI at 1.1555 indicates aggressive spending on sales and marketing, which may not translate into revenue growth.
- DSRI at 0.7524 suggests that inventory levels are well managed compared to sales, potentially indicating operational efficiency.
- Strong state ownership at 51.8% may provide a level of stability and support for the company.
The significant state ownership (51.8%) could mitigate some risks associated with individual shareholders, but the high concentration of ownership by a single individual (43.1%) raises concerns about governance and decision-making.
Investors should proceed with caution, closely monitoring cash flow and earnings quality metrics. It may be prudent to wait for improved financial transparency and performance indicators before making significant investments.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for UCT — hover nodes for intel, click to navigate