VNH
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 — VNH
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2023
The forensic analysis of VNH reveals significant red flags related to earnings quality and potential manipulation. With a Beneish M-Score of -0.8232, the company is below the threshold indicating a low likelihood of earnings manipulation, yet concerning metrics in earnings quality suggest underlying issues.
- DSRI of 1.6934 indicates a significant increase in receivables relative to sales, which may suggest aggressive revenue recognition practices.
- Earnings Quality Score of 22.0/100 highlights severe deficiencies in revenue and margin quality, with scores of 0.0/100 for eq_receivables, eq_margin, and eq_revenue indicating potential revenue recognition issues.
- GMI of 2.2314 suggests that gross margins are declining, which is a warning signal for potential profitability issues.
- SGI of 0.6014 indicates that sales growth is slowing, which may be a positive signal for sustainable growth if managed properly.
- The company has a relatively low SGAI of 0.8790, suggesting that selling, general, and administrative expenses are being controlled.
The ownership structure is concentrated among individual shareholders, with the largest shareholder holding 18.0%. This concentration may lead to governance risks, as decisions may favor the interests of a few rather than minority shareholders.
Investors should exercise caution and closely monitor VNH's financial disclosures, focusing on improving earnings quality metrics. It may be prudent to wait for clearer signals of financial stability before considering an investment.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for VNH — hover nodes for intel, click to navigate