City Union Bank Stock Beneish M Score

CUB Stock   179.53  0.15  0.08%   
This module uses fundamental data of City Union to approximate the value of its Beneish M Score. City Union 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 City Union Bank. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
  
At present, City Union's Short Term Debt is projected to increase significantly based on the last few years of reporting.
At this time, City Union's M Score is inapplicable. The earnings manipulation may begin if City Union'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 City Union 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 City Union'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.
-3.03
Beneish M Score - Inapplicable
Elasticity of Receivables

1.39

Focus
Asset Quality

1.01

Focus
Expense Coverage

0.95

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.95

Focus
Depreciation Resistance

1.09

Focus
Net Sales Growth

0.56

Focus
Financial Leverage Condition

1.06

Focus

City Union 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 City Union'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 ReceivablesB3.9 B
Significantly Down
Slightly volatile
Total Revenue14.4 B25.8 B
Way Down
Slightly volatile
Total Assets743.7 B708.3 B
Sufficiently Up
Slightly volatile
Total Current Assets24.9 B33 B
Way Down
Slightly volatile
Non Current Assets Total709 B675.3 B
Sufficiently Up
Slightly volatile
Property Plant Equipment130.7 M137.6 M
Notably Down
Slightly volatile
Depreciation And Amortization445.5 M753.9 M
Way Down
Slightly volatile
Selling General Administrative27.6 M52 M
Way Down
Slightly volatile
Total Current Liabilities189.1 B180.1 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total652.2 B621.1 B
Sufficiently Up
Slightly volatile
Short Term Debt42.6 B40.5 B
Sufficiently Up
Slightly volatile
Long Term Debt890.1 K936.9 K
Notably Down
Slightly volatile
Operating Income15 B14.3 B
Sufficiently Up
Pretty Stable
Long Term Investments102 B156.6 B
Way Down
Slightly volatile

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

About City Union 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

445.47 Million

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

City Union 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 City Union. 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 Receivables3.3B3.2B3.6B3.4B3.9B3.0B
Total Revenue23.9B25.2B26.7B29.7B25.8B14.4B
Total Assets497.3B533.1B615.3B665.9B708.3B743.7B
Total Current Assets32.2B36.2B45.4B40.4B33.0B24.9B
Net Debt(29.0B)(40.8B)(9.0B)(19.6B)(69.4B)(66.0B)
Short Term Debt13.9B11.0B50.2B38.7B40.5B42.6B
Long Term Debt8.9M4.0B1.4M1.0M936.9K890.1K
Operating Income5.1B6.1B9.0B11.0B14.3B15.0B
Investments(595.9M)(379.6M)(628.4M)(718.8M)(1.1B)(1.1B)

About City Union Fundamental Analysis

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

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Other Information on Investing in City Stock

City Union financial ratios help investors to determine whether City 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 City with respect to the benefits of owning City Union security.