Allegheny Technologies Incorporated Stock Beneish M Score

ATI Stock  USD 58.16  0.14  0.24%   
This module uses fundamental data of Allegheny Technologies to approximate the value of its Beneish M Score. Allegheny Technologies 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 Allegheny Technologies Piotroski F Score and Allegheny Technologies Altman Z Score analysis.
  
As of now, Allegheny Technologies' Interest Debt Per Share is increasing as compared to previous years. The Allegheny Technologies' current Debt To Assets is estimated to increase to 0.46, while Short and Long Term Debt Total is projected to decrease to under 1.2 B. As of now, Allegheny Technologies' EV To Sales is increasing as compared to previous years. The Allegheny Technologies' current ROIC is estimated to increase to 0.20, while Dividend Yield is projected to decrease to 0.01.
At this time, it appears that Allegheny Technologies is a possible manipulator. The earnings manipulation may begin if Allegheny Technologies' 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 Allegheny Technologies 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 Allegheny Technologies' 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.
-1.87
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.44

Focus
Asset Quality

1.39

Focus
Expense Coverage

1.06

Focus
Gross Margin Strengs

0.88

Focus
Accruals Factor

1.06

Focus
Depreciation Resistance

1.09

Focus
Net Sales Growth

0.55

Focus
Financial Leverage Condition

0.71

Focus

Allegheny Technologies 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 Allegheny Technologies' 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
Net Receivables542.1 M684.1 M
Significantly Down
Very volatile
Total Revenue4.1 B7.5 B
Way Down
Very volatile
Total Assets4.6 BB
Significantly Down
Pretty Stable
Total Current AssetsB2.7 B
Way Down
Pretty Stable
Non Current Assets Total2.6 B2.2 B
Fairly Up
Slightly volatile
Property Plant Equipment1.9 B1.8 B
Significantly Up
Slightly volatile
Depreciation And Amortization144.3 M146.1 M
Fairly Down
Slightly volatile
Selling General Administrative182.7 M312.6 M
Way Down
Slightly volatile
Total Current Liabilities764.3 M977.1 M
Significantly Down
Very volatile
Non Current Liabilities Total2.1 B2.5 B
Fairly Down
Very volatile
Net Debt806 M1.4 B
Way Down
Pretty Stable
Short Term Debt61.7 M31.9 M
Way Up
Pretty Stable
Long Term Debt1.3 B2.1 B
Way Down
Slightly volatile
Gross Profit Margin0.170.1923
Fairly Down
Pretty Stable

Allegheny Technologies 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 Allegheny Technologies' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Allegheny Technologies in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Allegheny Technologies' degree of accounting gimmicks and manipulations.

About Allegheny Technologies 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.

Other Operating Expenses

3.84 Billion

As of now, Allegheny Technologies' Other Operating Expenses is increasing as compared to previous years.

Allegheny Technologies Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Allegheny Technologies. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables592.6M384.7M523.9M643.3M684.1M542.1M
Total Revenue4.1B3.0B2.8B3.8B7.5B4.1B
Total Assets5.6B4.0B4.3B4.4B5.0B4.6B
Total Current Assets2.3B2.1B2.3B2.5B2.7B2.0B
Net Debt908.1M921.9M1.2B1.2B1.4B806.0M
Long Term Debt1.4B1.6B1.7B1.7B2.1B1.3B
Operating Income366.1M28.5M161.7M287.3M466.4M489.7M
Investments81.7M(128.7M)(77.3M)(126.7M)(168.9M)(177.3M)

Allegheny Technologies ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Allegheny Technologies' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Allegheny Technologies' managers, analysts, and investors.
Environmental
Governance
Social

About Allegheny Technologies Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Allegheny Technologies Incorporated's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Allegheny Technologies using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Allegheny Technologies Incorporated 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.

Currently Active Assets on Macroaxis

When determining whether Allegheny Technologies offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Allegheny Technologies' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Allegheny Technologies Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Allegheny Technologies Incorporated Stock:
Check out Allegheny Technologies Piotroski F Score and Allegheny Technologies Altman Z Score analysis.
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Is Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Allegheny Technologies. If investors know Allegheny will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Allegheny Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.07)
Earnings Share
2.59
Revenue Per Share
33.577
Quarterly Revenue Growth
0.025
Return On Assets
0.0557
The market value of Allegheny Technologies is measured differently than its book value, which is the value of Allegheny that is recorded on the company's balance sheet. Investors also form their own opinion of Allegheny Technologies' value that differs from its market value or its book value, called intrinsic value, which is Allegheny Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Allegheny Technologies' market value can be influenced by many factors that don't directly affect Allegheny Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Allegheny Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Allegheny Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allegheny Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.