Emeco Holdings Stock Beneish M Score

EHL Stock   0.81  0.01  1.22%   
This module uses fundamental data of Emeco Holdings to approximate the value of its Beneish M Score. Emeco Holdings 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 Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Emeco Holdings. 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 this time, Emeco Holdings' Long Term Debt is comparatively stable compared to the past year. Short and Long Term Debt Total is likely to gain to about 418.2 M in 2024, whereas Net Debt is likely to drop slightly above 264.9 M in 2024.
At this time, Emeco Holdings' M Score is inapplicable. The earnings manipulation may begin if Emeco Holdings' 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 Emeco Holdings 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 Emeco Holdings' 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.
-1.32
Beneish M Score - Inapplicable
Elasticity of Receivables

1.1

Focus
Asset Quality

3.15

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.93

Focus
Net Sales Growth

0.63

Focus
Financial Leverage Condition

0.9

Focus

Emeco Holdings 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 Emeco Holdings' 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 Receivables100.1 M143.8 M
Way Down
Slightly volatile
Total Revenue519.3 M822.7 M
Way Down
Slightly volatile
Total AssetsB1.2 B
Fairly Down
Slightly volatile
Total Current Assets240.5 M294 M
Significantly Down
Slightly volatile
Non Current Assets Total581 M880.8 M
Way Down
Very volatile
Property Plant Equipment636.8 M952.4 M
Way Down
Slightly volatile
Depreciation And Amortization113.6 M155.2 M
Way Down
Slightly volatile
Selling General Administrative76 M120.4 M
Way Down
Slightly volatile
Total Current Liabilities108.7 M195.8 M
Way Down
Slightly volatile
Non Current Liabilities Total425.9 M341.7 M
Fairly Up
Pretty Stable
Net Debt264.9 M280.5 M
Notably Down
Slightly volatile
Short Term Debt56.2 M53.6 M
Sufficiently Up
Slightly volatile
Long Term Debt298.3 M249.5 M
Fairly Up
Slightly volatile
Long Term Investments315.5 K332.1 K
Notably Down
Slightly volatile

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

About Emeco Holdings 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

113.56 Million

At this time, Emeco Holdings' Depreciation And Amortization is comparatively stable compared to the past year.

Emeco Holdings 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 Emeco Holdings. 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 Receivables113.8M124.7M160.2M170.0M143.8M100.1M
Total Revenue540.4M620.5M754.4M874.9M822.7M519.3M
Total Assets1.2B1.1B1.0B1.1B1.2B1.0B
Total Current Assets333.2M228.6M251.6M245.9M294.0M240.5M
Net Debt421.8M224.5M240.9M276.0M280.5M264.9M
Short Term Debt123.0M25.8M15.0M23.7M53.6M56.2M
Long Term Debt460.5M250.4M245.5M246.6M249.5M298.3M
Operating Income114.6M109.6M117.8M78.7M356.4M374.2M
Investments(169.9M)328K(169.9M)(180.9M)(201.4M)(211.5M)

About Emeco Holdings Fundamental Analysis

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

When running Emeco Holdings' price analysis, check to measure Emeco Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Emeco Holdings is operating at the current time. Most of Emeco Holdings' value examination focuses on studying past and present price action to predict the probability of Emeco Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Emeco Holdings' price. Additionally, you may evaluate how the addition of Emeco Holdings to your portfolios can decrease your overall portfolio volatility.