| GTE Stock | | | CAD 8.20 0.16 1.99% |
This module uses fundamental data of Gran Tierra to approximate the value of its Beneish M Score. Gran Tierra 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
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gran Tierra Energy. 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, Gran Tierra's
Net Debt is very stable compared to the past year. As of the 17th of February 2025,
Short Term Debt is likely to grow to about 37.9
M, while
Short and Long Term Debt Total is likely to drop about 548.2
M. At this time, Gran Tierra's
Capex To Operating Cash Flow is very stable compared to the past year. As of the 17th of February 2025,
PFCF Ratio is likely to grow to 25.02, while
Price To Sales Ratio is likely to drop 0.32.
At this time, Gran Tierra's M Score is inapplicable. The earnings manipulation may begin if Gran Tierra'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 Gran Tierra 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 Gran Tierra'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.
-1.19
Beneish M Score - Inapplicable
| Elasticity of Receivables | |
| Financial Leverage Condition | |
Gran Tierra 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 Gran Tierra'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.
Gran Tierra Energy 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 Gran Tierra's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Gran Tierra in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Gran Tierra's degree of accounting gimmicks and manipulations.
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About Gran Tierra 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.
Gran Tierra 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 Gran Tierra. 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.
About Gran Tierra Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Gran Tierra Energy's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Gran Tierra using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Gran Tierra Energy 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.
When determining whether Gran Tierra Energy is a strong investment it is important to analyze Gran Tierra's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Gran Tierra's
future performance.
For an informed investment choice regarding Gran Stock, refer to the following important reports: Check out
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gran Tierra Energy. 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.
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Please note, there is a significant difference between Gran Tierra's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gran Tierra is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gran Tierra's 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.