VXP
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 — VXP
Earnings Quality
Fiscal year 2024
Financial Forensics
Beneish M-Score · 2024
VXP exhibits several concerning indicators of potential financial manipulation, as evidenced by a Beneish M-Score of -3.957, well below the manipulation threshold of -1.78. While the earnings quality score of 49.5 suggests some strengths, the low cash conversion and revenue metrics raise significant red flags regarding the sustainability of earnings.
- Beneish M-Score of -3.957 indicates a high likelihood of earnings manipulation.
- Earnings quality score of 49.5, particularly low cash conversion at 32.6, suggests potential issues with actual cash flows.
- Revenue metrics score of 0.0/100 raises concerns about the reliability of reported revenues.
- DSRI of 0.6021 indicates a lower rate of receivables growth compared to sales, which is generally a positive sign.
- Strong receivables score of 100.0/100 suggests effective management of accounts receivable.
The majority ownership by the state (65.0%) may imply stability but also raises concerns about potential influence on financial reporting and lack of accountability. The significant institutional stake (23.9%) could provide some level of oversight.
Investors should proceed with caution, closely monitoring cash flow performance and revenue recognition practices. Consider waiting for improved earnings quality metrics before making significant investments in VXP.
Generated by AI based on quantitative data. Not financial advice.
Quantitative Scores
Key Ratios
Company Overview
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> mapping common ownership for VXP — hover nodes for intel, click to navigate