Canadian Net Real Stock Beneish M Score

NET-UN Stock   5.33  0.05  0.95%   
This module uses fundamental data of Canadian Net to approximate the value of its Beneish M Score. Canadian Net 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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Canadian Net Real. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment.
  
The current year's Interest Debt Per Share is expected to grow to 9.31, whereas Net Debt is forecasted to decline to about 120.9 M. At present, Canadian Net's Dividend Yield is projected to increase slightly based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 136.52, whereas Price To Sales Ratio is forecasted to decline to 3.57.
At this time, Canadian Net's M Score is inapplicable. The earnings manipulation may begin if Canadian Net'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 Canadian Net 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 Canadian Net'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.
0.67
Beneish M Score - Inapplicable
Elasticity of Receivables

N/A

Focus
Asset Quality

11.76

Focus
Expense Coverage

1.14

Focus
Gross Margin Strengs

1.22

Focus
Accruals Factor

1.14

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.61

Focus
Financial Leverage Condition

0.95

Focus

Canadian Net 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 Canadian Net'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
Total Revenue16.2 M26.6 M
Way Down
Slightly volatile
Total Assets219.7 M308.4 M
Way Down
Slightly volatile
Total Current Assets4.3 M8.2 M
Way Down
Slightly volatile
Non Current Assets Total215.2 M300.2 M
Way Down
Slightly volatile
Property Plant Equipment157.6 M290.9 M
Way Down
Slightly volatile
Selling General Administrative1.1 M1.6 M
Way Down
Slightly volatile
Total Current Liabilities21.5 M35.7 M
Way Down
Slightly volatile
Non Current Liabilities Total104.3 M143.2 M
Way Down
Slightly volatile
Net Debt120.9 M173.7 M
Way Down
Slightly volatile
Long Term Debt103.2 M142.2 M
Way Down
Slightly volatile
Operating Income11.1 M17.9 M
Way Down
Slightly volatile
Total Cash From Operating Activities7.4 M11.3 M
Way Down
Slightly volatile
Short Term Investments1.5 M1.8 M
Significantly Down
Slightly volatile
Long Term Investments15.5 M22.3 M
Way Down
Slightly volatile
Gross Profit Margin0.890.7319
Fairly Up
Slightly volatile

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

About Canadian Net 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.

Capex To Depreciation

4.11

At present, Canadian Net's Capex To Depreciation is projected to decrease significantly based on the last few years of reporting.

Canadian Net 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 Canadian Net. 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)
Total Revenue9.4M13.0M19.0M24.7M26.6M16.2M
Total Assets129.1M209.7M278.2M303.1M308.4M219.7M
Total Current Assets2.6M5.7M1.9M8.3M8.2M4.3M
Net Debt73.6M111.3M144.1M179.9M173.7M120.9M
Long Term Debt55.7M106.8M130.0M144.4M142.2M103.2M
Operating Income6.3M9.1M13.2M16.9M17.9M11.1M
Investments(1.7M)(5.1M)(2.0M)(41.6M)2.7M2.8M
Gross Profit Margin0.80.810.760.740.730.89

About Canadian Net Fundamental Analysis

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

Canadian Net financial ratios help investors to determine whether Canadian 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 Canadian with respect to the benefits of owning Canadian Net security.