VET
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 — VET
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2025
VET exhibits several concerning indicators of potential earnings manipulation, as evidenced by a Beneish M-Score of -2.0015, which is below the manipulation threshold of -1.78. Additionally, the earnings quality score of 34.0/100 highlights significant weaknesses in cash conversion and receivables management.
- Beneish M-Score of -2.0015 indicates potential earnings manipulation, with DSRI at 1.3802 suggesting increasing receivables relative to sales.
- Earnings Quality Score of 34.0/100, particularly low cash conversion (0.0/100) and receivables quality (0.0/100), raises concerns about the sustainability of reported earnings.
- Revenue quality score of 96.5/100 suggests strong underlying revenue generation capabilities.
The dominant state ownership (65.0%) may lead to potential conflicts of interest and reduced transparency, as state-owned enterprises (SOEs) often prioritize political objectives over shareholder value.
Investors should closely monitor VET's financial disclosures for signs of improved cash flow management and consider a cautious approach given the elevated risk of earnings manipulation.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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> mapping common ownership for VET — hover nodes for intel, click to navigate