VMG
UtilitiesValuation Breakdown
The Dividend Discount Model values a stock based on its future dividend payments, discounted to present value. The 3-stage variant captures three phases of a company's life: high growth (years 1-3), a transition period where growth declines linearly (years 4-6), and a terminal stage of stable, perpetual growth (year 7+). As John D. Rockefeller said: "The only thing that gives me pleasure is to see my dividends coming in."
Valuation Track Record
Retroactive intrinsic value vs actual close price — VMG
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
VMG exhibits several concerning financial metrics that suggest potential earnings manipulation, particularly with a Beneish M-Score of -1.7604, which is close to the threshold indicating manipulation risk. Additionally, the earnings quality score of 21.9/100 reflects significant weaknesses in revenue recognition and cash conversion.
- Beneish M-Score of -1.7604 is just above the manipulation threshold of -1.78, indicating potential earnings manipulation.
- Earnings Quality Score of 21.9/100, with 0.0/100 in receivables, margin, and revenue metrics, suggests severe issues in revenue recognition and cash flow.
- SGAI of 2.0723 indicates aggressive spending on sales and marketing, which may not correlate with revenue growth.
- DSRI of 3.2567 suggests that inventory is being managed effectively relative to sales, which could indicate operational efficiency.
- GMI of 0.5750 indicates that gross margins are still positive, suggesting some level of profitability despite other concerns.
The concentrated ownership structure, with the top three shareholders holding 62.1% of the shares, raises governance concerns as decisions may favor individual interests over minority shareholders.
Investors should approach VMG with caution, considering the elevated risk of earnings manipulation. A thorough review of financial statements and operational performance is recommended before making any investment decisions.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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