VKC
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 — VKC
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2022
The analysis of VKC reveals significant red flags indicating potential earnings manipulation, as evidenced by a Beneish M-Score of -3.6105, well below the threshold of -1.78. Additionally, the company's earnings quality score of 7.8/100 suggests severe issues with revenue recognition and cash conversion.
- Beneish M-Score of -3.6105 indicates a high likelihood of earnings manipulation.
- Earnings Quality Score of 7.8/100 highlights poor revenue recognition and cash conversion metrics.
- SGAI of 13.2201 suggests excessive spending on sales and marketing relative to revenue growth.
- SGI of 0.2974 indicates a potential for revenue stabilization, albeit at a low growth rate.
The ownership structure is heavily concentrated among individual shareholders, with the largest holding at 15.6%, which may lead to governance challenges and potential conflicts of interest.
Investors should exercise caution and consider divesting or avoiding VKC due to high risk of earnings manipulation and poor financial health. A thorough review of financial statements and potential governance issues is recommended.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for VKC — hover nodes for intel, click to navigate