UEM
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 — UEM
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
UEM exhibits several concerning indicators of potential earnings manipulation, as evidenced by a Beneish M-Score of -1.6203, which is above the threshold indicating possible manipulation. Additionally, the low earnings quality score of 31.1/100, particularly the cash conversion score of 0.0/100, raises significant red flags regarding the reliability of reported earnings.
- Beneish M-Score of -1.6203 is above the manipulation threshold of -1.78, suggesting potential earnings manipulation.
- Earnings Quality Score of 31.1/100 indicates poor earnings quality, with a cash conversion score of 0.0/100 highlighting severe issues in cash flow generation.
- Receivables quality score of 24.5/100 suggests potential overstatement of revenue through receivables.
- DSRI of 1.5923 indicates that inventory growth is outpacing revenue growth, which could suggest future sales opportunities if managed correctly.
- SGI of 0.8449 indicates a decrease in sales growth, which may reflect a strategic adjustment to align production with demand.
The significant ownership stake of Tập đoàn Công nghiệp Than - Khoáng sản Việt Nam at 35.4% indicates a strong institutional presence, which may provide stability. However, the concentration of ownership could lead to governance issues and lack of minority shareholder protection.
Investors should exercise caution and conduct further due diligence, particularly focusing on cash flow statements and revenue recognition practices. Monitoring future earnings reports for improvements in cash conversion and overall earnings quality is essential before making investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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> mapping common ownership for UEM — hover nodes for intel, click to navigate