Prairiesky Royalty Stock Beneish M Score

PSK Stock  CAD 29.73  0.02  0.07%   
This module uses fundamental data of PrairieSky Royalty to approximate the value of its Beneish M Score. PrairieSky Royalty 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 Your Equity Center to better understand how to build diversified portfolios, which includes a position in PrairieSky Royalty. 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, PrairieSky Royalty's Net Debt is very stable compared to the past year. As of the 30th of November 2024, Short and Long Term Debt Total is likely to grow to about 204.1 M, while Long Term Debt Total is likely to drop about 136.2 M. At this time, PrairieSky Royalty's Inventory Turnover is very stable compared to the past year. As of the 30th of November 2024, Days Of Inventory On Hand is likely to grow to 3.10, while Dividend Yield is likely to drop 0.04.
At this time, PrairieSky Royalty's M Score is inapplicable. The earnings manipulation may begin if PrairieSky Royalty'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 PrairieSky Royalty 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 PrairieSky Royalty'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.
-2.43
Beneish M Score - Inapplicable
Elasticity of Receivables

1.24

Focus
Asset Quality

0.7

Focus
Expense Coverage

0.96

Focus
Gross Margin Strengs

0.93

Focus
Accruals Factor

0.96

Focus
Depreciation Resistance

1.07

Focus
Net Sales Growth

0.67

Focus
Financial Leverage Condition

1.15

Focus

PrairieSky Royalty 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 PrairieSky Royalty'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 Receivables51.5 M61.6 M
Fairly Down
Slightly volatile
Total Revenue345.1 M513.2 M
Way Down
Slightly volatile
Total Assets2.6 B3.3 B
Significantly Down
Slightly volatile
Total Current Assets57.5 M62.3 M
Significantly Down
Very volatile
Non Current Assets Total2.6 B3.2 B
Significantly Down
Slightly volatile
Property Plant Equipment1.9 BB
Notably Down
Slightly volatile
Depreciation And Amortization125.5 M141.3 M
Fairly Down
Slightly volatile
Selling General Administrative28.5 M44.2 M
Way Down
Slightly volatile
Total Current Liabilities61.1 M96.4 M
Way Down
Slightly volatile
Non Current Liabilities Total339 M444.9 M
Way Down
Slightly volatile
Long Term Debt279.9 M188 M
Way Up
Slightly volatile
Operating Income449.6 M428.2 M
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities274.5 M318.9 M
Fairly Down
Slightly volatile
Gross Profit Margin0.660.7122
Significantly Down
Slightly volatile

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

About PrairieSky Royalty 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

125.49 Million

At this time, PrairieSky Royalty's Depreciation And Amortization is very stable compared to the past year.

PrairieSky Royalty 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 PrairieSky Royalty. 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 Receivables37.3M27.2M52.4M80.3M61.6M51.5M
Total Revenue268.4M171.4M308M643.3M513.2M345.1M
Total Assets2.7B2.6B3.5B3.4B3.3B2.6B
Total Current Assets37.9M27.7M52.9M80.8M62.3M57.5M
Net Debt12.9M47.3M646.6M220.1M188.1M197.5M
Short Term Debt7.9M43.5M700K800K100K95K
Operating Income110.8M39.3M162.8M434.4M428.2M449.6M
Investments(10M)(8.6M)(986.4M)(30.6M)(41.9M)(44.0M)
Gross Profit Margin0.470.520.380.660.760.71

PrairieSky Royalty ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, PrairieSky Royalty's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to PrairieSky Royalty's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About PrairieSky Royalty Fundamental Analysis

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

Pair Trading with PrairieSky Royalty

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PrairieSky Royalty position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PrairieSky Royalty will appreciate offsetting losses from the drop in the long position's value.

Moving together with PrairieSky Stock

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Moving against PrairieSky Stock

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The ability to find closely correlated positions to PrairieSky Royalty could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PrairieSky Royalty when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PrairieSky Royalty - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PrairieSky Royalty to buy it.
The correlation of PrairieSky Royalty is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PrairieSky Royalty moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PrairieSky Royalty moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PrairieSky Royalty can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Other Information on Investing in PrairieSky Stock

PrairieSky Royalty financial ratios help investors to determine whether PrairieSky 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 PrairieSky with respect to the benefits of owning PrairieSky Royalty security.