Ryerson Holding Corp Stock Beneish M Score

RYI Stock  USD 24.78  0.39  1.60%   
This module uses fundamental data of Ryerson Holding to approximate the value of its Beneish M Score. Ryerson Holding 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 Ryerson Holding Piotroski F Score and Ryerson Holding Altman Z Score analysis.
  
As of now, Ryerson Holding's Debt To Equity is increasing as compared to previous years. The Ryerson Holding's current Debt Equity Ratio is estimated to increase to 0.51, while Long Term Debt is projected to decrease to under 406.9 M. As of now, Ryerson Holding's Book Value Per Share is increasing as compared to previous years. The Ryerson Holding's current Free Cash Flow Yield is estimated to increase to 0.36, while Dividend Yield is projected to decrease to 0.02.
At this time, it appears that Ryerson Holding Corp is an unlikely manipulator. The earnings manipulation may begin if Ryerson Holding'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 Ryerson Holding 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 Ryerson Holding'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.
-3.54
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.78

Focus
Asset Quality

1.12

Focus
Expense Coverage

1.37

Focus
Gross Margin Strengs

0.7

Focus
Accruals Factor

1.37

Focus
Depreciation Resistance

1.01

Focus
Net Sales Growth

0.87

Focus
Financial Leverage Condition

1.15

Focus

Ryerson Holding 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 Ryerson Holding'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 Revenue4.5 B5.1 B
Fairly Down
Slightly volatile
Total Assets2.1 B2.6 B
Significantly Down
Slightly volatile
Total Current AssetsB1.4 B
Way Down
Pretty Stable
Non Current Assets Total804.8 M1.2 B
Way Down
Slightly volatile
Property Plant Equipment447.7 M527.2 M
Fairly Down
Slightly volatile
Depreciation And Amortization52.5 M62.5 M
Fairly Down
Slightly volatile
Selling General Administrative781.5 M654.4 M
Fairly Up
Very volatile
Total Current Liabilities504.7 M633.9 M
Significantly Down
Slightly volatile
Non Current Liabilities Total1.1 BB
Significantly Up
Slightly volatile
Net Debt788.4 M749.5 M
Sufficiently Up
Slightly volatile
Short Term Debt44.7 M45.5 M
Fairly Down
Pretty Stable
Long Term Debt406.9 M428.3 M
Notably Down
Slightly volatile
Operating Income153.6 M228.1 M
Way Down
Slightly volatile
Short Term Investments109.2 K115 K
Notably Down
Slightly volatile
Long Term Investments1.4 M1.7 M
Significantly Down
Slightly volatile
Gross Profit Margin0.140.2
Way Down
Slightly volatile

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

About Ryerson Holding 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

153.58 Million

As of now, Ryerson Holding's Operating Income is increasing as compared to previous years.

Ryerson Holding 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 Ryerson Holding. 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 Receivables425.1M389.7M652.1M(57.2M)486.5M332.9M
Total Revenue4.5B3.5B5.7B6.3B5.1B4.5B
Total Assets2.0B1.8B2.4B2.3B2.6B2.1B
Total Current Assets1.3B1.1B1.6B1.4B1.4B1.0B
Net Debt1.1B792.3M797.8M568.1M749.5M788.4M
Short Term Debt70.1M43.5M67.6M38.1M45.5M44.7M
Long Term Debt932.6M726.2M610.5M361.2M428.3M406.9M
Operating Income130.3M66.8M274.6M578.7M228.1M153.6M
Investments26.4M(25.9M)94.4M(2M)(216.1M)(205.3M)

Ryerson Holding 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, Ryerson Holding's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Ryerson Holding's managers, analysts, and investors.
Environmental
Governance
Social

About Ryerson Holding Fundamental Analysis

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

Currently Active Assets on Macroaxis

When determining whether Ryerson Holding Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ryerson Holding'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 Ryerson Holding Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ryerson Holding Corp Stock:
Check out Ryerson Holding Piotroski F Score and Ryerson Holding Altman Z Score analysis.
You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Is Metals & Mining 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 Ryerson Holding. If investors know Ryerson 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 Ryerson Holding 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
(0.73)
Dividend Share
0.748
Earnings Share
0.63
Revenue Per Share
139.339
Quarterly Revenue Growth
(0.1)
The market value of Ryerson Holding Corp is measured differently than its book value, which is the value of Ryerson that is recorded on the company's balance sheet. Investors also form their own opinion of Ryerson Holding's value that differs from its market value or its book value, called intrinsic value, which is Ryerson Holding'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 Ryerson Holding's market value can be influenced by many factors that don't directly affect Ryerson Holding'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 Ryerson Holding's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ryerson Holding is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ryerson Holding'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.