VTQ
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 — VTQ
Earnings Quality
Fiscal year 2025
Financial Forensics
Beneish M-Score · 2024
VTQ exhibits several concerning financial metrics, particularly with a Beneish M-Score of -1.34, indicating a potential risk of earnings manipulation, although it remains below the manipulation threshold. The earnings quality score of 71.0 suggests decent overall quality, but specific areas like revenue recognition are notably weak.
- Beneish M-Score of -1.34, close to the manipulation threshold of -1.78, indicating potential earnings manipulation risk.
- SGI of 1.9520 suggests aggressive revenue growth that may not be sustainable, raising concerns about the quality of reported earnings.
- Low eq_margin score of 0.0/100 indicates no profitability in margins, which could signal issues in cost management or pricing power.
- High cash conversion score of 100.0/100 indicates strong cash flow management, which is a positive signal for operational efficiency.
- Strong state ownership at 61.9% may provide stability and support, reducing the likelihood of drastic management changes.
The significant state ownership at 61.9% may lead to a lack of transparency and potential conflicts of interest, especially in a market where SOE mandates can influence operational decisions.
Investors should closely monitor VTQ's revenue growth strategies and earnings quality metrics, considering a cautious approach until clearer signals of sustainable profitability emerge.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
// OWNERSHIP_NETWORK
> mapping common ownership for VTQ — hover nodes for intel, click to navigate