Suncar Technology Group Stock Beneish M Score

SDA Stock   10.19  0.24  2.30%   
This module uses fundamental data of SunCar Technology to approximate the value of its Beneish M Score. SunCar Technology 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 SunCar Technology Piotroski F Score and SunCar Technology Altman Z Score analysis.
  
At present, SunCar Technology's Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Debt To Equity is expected to grow to 5.42, whereas Short and Long Term Debt Total is forecasted to decline to about 60.7 M. At present, SunCar Technology's PTB Ratio is projected to increase significantly based on the last few years of reporting. The current year's PB Ratio is expected to grow to 46.03, whereas Book Value Per Share is forecasted to decline to 0.76.
At this time, it appears that SunCar Technology is a possible manipulator. The earnings manipulation may begin if SunCar Technology'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 SunCar Technology 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 SunCar Technology'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.
-1.61
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.58

Focus
Asset Quality

1.55

Focus
Expense Coverage

1.12

Focus
Gross Margin Strengs

0.96

Focus
Accruals Factor

1.12

Focus
Depreciation Resistance

0.85

Focus
Net Sales Growth

0.86

Focus
Financial Leverage Condition

1.19

Focus

SunCar Technology 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 SunCar Technology'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 Receivables76 M56 M
Significantly Up
Slightly volatile
Total Revenue311.9 M363.7 M
Fairly Down
Slightly volatile
Total Assets150.8 M223.2 M
Way Down
Slightly volatile
Total Current Assets106.9 M175.2 M
Way Down
Slightly volatile
Non Current Assets Total39.8 M48 M
Significantly Down
Pretty Stable
Property Plant Equipment16.3 M21.7 M
Way Down
Slightly volatile
Depreciation And Amortization4.5 M4.9 M
Significantly Down
Slightly volatile
Selling General Administrative21.6 M22.5 M
Sufficiently Down
Slightly volatile
Total Current Liabilities86.6 M124.4 M
Way Down
Slightly volatile
Short Term Debt60.6 M83.8 M
Way Down
Very volatile
Short Term Investments26.4 M21.6 M
Fairly Up
Slightly volatile
Long Term Investments238.6 K282 K
Fairly Down
Slightly volatile
Gross Profit Margin0.110.1146
Sufficiently Down
Slightly volatile

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

About SunCar Technology 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.

Other Operating Expenses

314.65 Million

At present, SunCar Technology's Other Operating Expenses is projected to increase significantly based on the last few years of reporting.

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

About SunCar Technology Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze SunCar Technology Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of SunCar Technology using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of SunCar Technology Group 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 SunCar Technology is a strong investment it is important to analyze SunCar Technology'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 SunCar Technology's future performance. For an informed investment choice regarding SunCar Stock, refer to the following important reports:
Check out SunCar Technology Piotroski F Score and SunCar Technology Altman Z Score analysis.
You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Is Diversified Consumer Services 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 SunCar Technology. If investors know SunCar 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 SunCar Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.94)
Revenue Per Share
4.449
Quarterly Revenue Growth
0.274
Return On Assets
(0.20)
Return On Equity
(1.28)
The market value of SunCar Technology is measured differently than its book value, which is the value of SunCar that is recorded on the company's balance sheet. Investors also form their own opinion of SunCar Technology's value that differs from its market value or its book value, called intrinsic value, which is SunCar Technology'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 SunCar Technology's market value can be influenced by many factors that don't directly affect SunCar Technology'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 SunCar Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if SunCar Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SunCar Technology'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.