Automotive Properties Real Stock Beneish M Score

APR-UN Stock  CAD 11.44  0.05  0.44%   
This module uses fundamental data of Automotive Properties to approximate the value of its Beneish M Score. Automotive Properties M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Automotive Properties Real. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment.
  
At present, Automotive Properties' Net Debt To EBITDA is projected to slightly decrease based on the last few years of reporting. The current year's Interest Debt Per Share is expected to grow to 15.03, whereas Short and Long Term Debt Total is forecasted to decline to about 338.4 M. At present, Automotive Properties' Dividend Yield is projected to increase slightly based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 9.25, whereas Price To Sales Ratio is forecasted to decline to 5.43.
At this time, Automotive Properties' M Score is inapplicable. The earnings manipulation may begin if Automotive Properties' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Automotive Properties executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Automotive Properties' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.98
Beneish M Score - Inapplicable
Elasticity of Receivables

1.04

Focus
Asset Quality

0.54

Focus
Expense Coverage

1.77

Focus
Gross Margin Strengs

0.79

Focus
Accruals Factor

1.77

Focus
Depreciation Resistance

0.71

Focus
Net Sales Growth

0.54

Focus
Financial Leverage Condition

1.0

Focus

Automotive Properties Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Automotive Properties' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Total Revenue49.7 M92.5 M
Way Down
Slightly volatile
Total Assets745.9 M1.2 B
Way Down
Slightly volatile
Total Current Assets2.9 M3.1 M
Notably Down
Slightly volatile
Non Current Assets Total735.3 M1.2 B
Way Down
Slightly volatile
Property Plant Equipment835.5 M1.2 B
Way Down
Slightly volatile
Selling General Administrative577.6 K608 K
Notably Down
Slightly volatile
Total Current Liabilities6.3 MM
Significantly Down
Slightly volatile
Non Current Liabilities Total444 M635.3 M
Way Down
Slightly volatile
Net Debt333.5 M534.8 M
Way Down
Slightly volatile
Short Term Debt342 K360 K
Notably Down
Very volatile
Long Term Debt404.1 M531.5 M
Way Down
Slightly volatile
Operating Income91.4 M87.1 M
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities37.4 M74.3 M
Way Down
Slightly volatile
Short Term Investments12.1 M11.4 M
Notably Up
Slightly volatile
Gross Profit Margin0.670.8479
Significantly Down
Pretty Stable

Automotive Properties Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Automotive Properties' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Automotive Properties in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Automotive Properties' degree of accounting gimmicks and manipulations.

About Automotive Properties Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

(11.03 Million)

At present, Automotive Properties' Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

About Automotive Properties Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Automotive Properties Real's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Automotive Properties using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Automotive Properties Real based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Pair Trading with Automotive Properties

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Automotive Properties position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Automotive Properties will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Automotive Properties could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Automotive Properties when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Automotive Properties - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Automotive Properties Real to buy it.
The correlation of Automotive Properties is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Automotive Properties moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Automotive Properties moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Automotive Properties can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Other Information on Investing in Automotive Stock

Automotive Properties financial ratios help investors to determine whether Automotive Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Automotive with respect to the benefits of owning Automotive Properties security.