Invesco Municipal Income Stock Beneish M Score

OIA Stock  USD 6.54  0.05  0.77%   
This module uses fundamental data of Invesco Municipal to approximate the value of its Beneish M Score. Invesco Municipal 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 Invesco Municipal Piotroski F Score and Invesco Municipal Altman Z Score analysis.
  
At present, Invesco Municipal's Net Debt To EBITDA is projected to increase based on the last few years of reporting. The current year's Debt To Equity is expected to grow to 0.48, whereas Short Term Debt is forecasted to decline to about 1.3 M. At present, Invesco Municipal's Price To Sales Ratio is projected to increase significantly based on the last few years of reporting. The current year's Dividend Yield is expected to grow to 0.06, whereas PTB Ratio is forecasted to decline to 0.80.
At this time, it appears that Invesco Municipal Income is a possible manipulator. The earnings manipulation may begin if Invesco Municipal'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 Invesco Municipal 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 Invesco Municipal'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.
-1.13
Beneish M Score - Possible Manipulator
Elasticity of Receivables

2.3

Focus
Asset Quality

0.99

Focus
Expense Coverage

1.93

Focus
Gross Margin Strengs

1.11

Focus
Accruals Factor

1.93

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.54

Focus
Financial Leverage Condition

0.67

Focus

Invesco Municipal 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 Invesco Municipal'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 Receivables7.7 M6.1 M
Significantly Up
Very volatile
Total Assets417.6 M446.7 M
Notably Down
Slightly volatile
Total Current Assets8.3 M6.5 M
Significantly Up
Slightly volatile
Non Current Assets Total300.8 M440.2 M
Way Down
Slightly volatile
Selling General Administrative2.8 M2.7 M
Sufficiently Up
Very volatile
Total Current Liabilities132.7 K139.7 K
Notably Down
Pretty Stable
Non Current Liabilities Total89.9 M141 M
Way Down
Slightly volatile
Net Debt87.9 M140.5 M
Way Down
Slightly volatile
Long Term Debt81.9 M130.9 M
Way Down
Slightly volatile
Operating Income19.1 M18.6 M
Fairly Up
Pretty Stable
Long Term Investments409.5 M440.2 M
Significantly Down
Slightly volatile

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

About Invesco Municipal 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.

Operating Income

19.13 Million

At present, Invesco Municipal's Operating Income is projected to increase significantly based on the last few years of reporting.

About Invesco Municipal Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Invesco Municipal Income's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Invesco Municipal using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Invesco Municipal Income 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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When determining whether Invesco Municipal Income offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Invesco Municipal's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Invesco Municipal Income Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Invesco Municipal Income Stock:
Check out Invesco Municipal Piotroski F Score and Invesco Municipal Altman Z Score analysis.
You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Invesco Municipal. If investors know Invesco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Invesco Municipal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
10.189
Dividend Share
0.337
Earnings Share
0.69
Revenue Per Share
0.454
Quarterly Revenue Growth
0.039
The market value of Invesco Municipal Income is measured differently than its book value, which is the value of Invesco that is recorded on the company's balance sheet. Investors also form their own opinion of Invesco Municipal's value that differs from its market value or its book value, called intrinsic value, which is Invesco Municipal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Invesco Municipal's market value can be influenced by many factors that don't directly affect Invesco Municipal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Invesco Municipal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Invesco Municipal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Invesco Municipal'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.