Capstone Mining Corp Stock Beneish M Score

CS Stock  CAD 9.68  0.25  2.65%   
This module uses fundamental data of Capstone Mining to approximate the value of its Beneish M Score. Capstone Mining 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 Capstone Mining Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
  
At this time, Capstone Mining's Interest Debt Per Share is very stable compared to the past year. As of the 29th of November 2024, Long Term Debt To Capitalization is likely to grow to 0.28, while Short Term Debt is likely to drop about 50.3 M. At this time, Capstone Mining's ROIC is very stable compared to the past year. As of the 29th of November 2024, Inventory Turnover is likely to grow to 8.86, while Price To Sales Ratio is likely to drop 2.00.
At this time, Capstone Mining's M Score is inapplicable. The earnings manipulation may begin if Capstone Mining's 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 Capstone Mining 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 Capstone Mining's 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.
-2.46
Beneish M Score - Inapplicable
Elasticity of Receivables

1.0

Focus
Asset Quality

0.9

Focus
Expense Coverage

0.48

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

0.48

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Capstone Mining 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 Capstone Mining's 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 Receivables154.7 M147.3 M
Sufficiently Up
Slightly volatile
Total Revenue1.4 B1.3 B
Sufficiently Up
Slightly volatile
Total Assets6.2 B5.9 B
Sufficiently Up
Slightly volatile
Total Current Assets511.2 M486.9 M
Sufficiently Up
Pretty Stable
Non Current Assets Total5.7 B5.4 B
Sufficiently Up
Slightly volatile
Property Plant Equipment5.7 B5.4 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization248.7 M236.9 M
Sufficiently Up
Slightly volatile
Selling General Administrative22.9 M45.1 M
Way Down
Slightly volatile
Total Current Liabilities453.4 M431.8 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total2.5 B2.4 B
Sufficiently Up
Slightly volatile
Short Term Debt50.3 M87.5 M
Way Down
Very volatile
Total Cash From Operating Activities96.9 M116.8 M
Significantly Down
Slightly volatile
Long Term Investments782.8 K824 K
Notably Down
Slightly volatile

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

About Capstone Mining 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

248.73 Million

At this time, Capstone Mining's Depreciation And Amortization is very stable compared to the past year.

Capstone Mining 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 Capstone Mining. 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 Receivables20.3M31.7M28.5M191.9M147.3M154.7M
Total Revenue418.7M453.8M794.8M1.3B1.3B1.4B
Total Assets1.3B1.4B1.7B5.4B5.9B6.2B
Total Current Assets123.4M157.9M361.7M572.2M486.9M511.2M
Net Debt173.1M136.5M(246.1M)532.7M1.0B1.1B
Short Term Debt769K1.6M3.4M28.9M87.5M50.3M
Long Term Debt207.1M183.2M0.0659.1M970.3M1.0B
Operating Income14.2M37.3M262.2M140.2M32.9M33.1M
Investments(65.5M)(96.4M)1.2M(370.7M)(687.1M)(652.8M)
Gross Profit Margin0.190.10.180.450.06170.0586

About Capstone Mining Fundamental Analysis

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

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 Capstone Mining 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 Capstone Mining will appreciate offsetting losses from the drop in the long position's value.

Moving together with Capstone Stock

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Moving against Capstone Stock

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The ability to find closely correlated positions to Capstone Mining could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Capstone Mining 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 Capstone Mining - 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 Capstone Mining Corp to buy it.
The correlation of Capstone Mining 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 Capstone Mining moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Capstone Mining Corp 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 Capstone Mining 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 Capstone Stock

Capstone Mining financial ratios help investors to determine whether Capstone 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 Capstone with respect to the benefits of owning Capstone Mining security.