Companhia Siderurgica Nacional Stock Beneish M Score

SID Stock  USD 1.96  0.04  2.00%   
This module uses fundamental data of Companhia Siderurgica to approximate the value of its Beneish M Score. Companhia Siderurgica 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 Companhia Siderurgica Piotroski F Score and Companhia Siderurgica Altman Z Score analysis.
  
At present, Companhia Siderurgica's Short Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Long Term Debt is expected to grow to about 39.1 B, whereas Short and Long Term Debt is forecasted to decline to about 6.7 B. At present, Companhia Siderurgica's Book Value Per Share is projected to increase based on the last few years of reporting. The current year's Free Cash Flow Yield is expected to grow to 0.12, whereas Dividend Yield is forecasted to decline to 0.11.
At this time, Companhia Siderurgica's M Score is unavailable. The earnings manipulation may begin if Companhia Siderurgica'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 Companhia Siderurgica 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 Companhia Siderurgica'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.
-2.51
Beneish M Score - Unavailable
Elasticity of Receivables

0.61

Focus
Asset Quality

0.98

Focus
Expense Coverage

0.75

Focus
Gross Margin Strengs

1.63

Focus
Accruals Factor

0.75

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.73

Focus

Companhia Siderurgica 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 Companhia Siderurgica'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 Receivables2.1 B3.3 B
Way Down
Slightly volatile
Total Revenue47.7 B45.4 B
Sufficiently Up
Slightly volatile
Total Assets96.1 B91.5 B
Sufficiently Up
Slightly volatile
Total Current Assets34.7 B33.1 B
Sufficiently Up
Slightly volatile
Non Current Assets Total61.4 B58.5 B
Sufficiently Up
Slightly volatile
Property Plant Equipment31.8 B30.3 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization3.5 B3.4 B
Sufficiently Up
Slightly volatile
Selling General Administrative645.1 M820.3 M
Significantly Down
Slightly volatile
Total Current Liabilities26.3 B25 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total24 B46.8 B
Way Down
Slightly volatile
Net Debt15.6 B29.5 B
Way Down
Slightly volatile
Short Term Debt8.1 B7.8 B
Sufficiently Up
Slightly volatile
Long Term Debt39.1 B37.2 B
Sufficiently Up
Slightly volatile
Operating Income4.2 B5.2 B
Significantly Down
Slightly volatile
Total Cash From Operating Activities7.7 B7.3 B
Sufficiently Up
Slightly volatile
Short Term Investments1.3 B1.5 B
Fairly Down
Slightly volatile
Long Term Investments4.5 B5.7 B
Significantly Down
Slightly volatile
Gross Profit Margin0.430.2633
Way Up
Very volatile

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

About Companhia Siderurgica 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

42.26 Billion

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

Companhia Siderurgica 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 Companhia Siderurgica. 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 Receivables3.4B2.9B2.6B3.2B3.3B2.1B
Total Revenue25.4B30.1B47.9B44.4B45.4B47.7B
Total Assets50.9B63.0B79.4B85.4B91.5B96.1B
Total Current Assets12.7B23.4B35.0B30.6B33.1B34.7B
Net Debt27.4B25.9B16.5B29.6B29.5B15.6B
Short Term Debt5.2B4.2B5.6B5.4B7.8B8.1B
Long Term Debt22.8B31.1B27.0B35.7B37.2B39.1B
Operating Income4.2B7.5B18.5B7.4B5.2B4.2B
Investments(2.2B)(92.8M)1.2B(11.5B)(6.7B)(6.4B)

About Companhia Siderurgica Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Companhia Siderurgica Nacional's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Companhia Siderurgica using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Companhia Siderurgica Nacional 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 Companhia Siderurgica is a strong investment it is important to analyze Companhia Siderurgica'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 Companhia Siderurgica's future performance. For an informed investment choice regarding Companhia Stock, refer to the following important reports:
Check out Companhia Siderurgica Piotroski F Score and Companhia Siderurgica Altman Z Score analysis.
You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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 Companhia Siderurgica. If investors know Companhia 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 Companhia Siderurgica 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
33.206
Dividend Share
0.716
Earnings Share
(0.09)
Revenue Per Share
32.926
Quarterly Revenue Growth
(0.01)
The market value of Companhia Siderurgica is measured differently than its book value, which is the value of Companhia that is recorded on the company's balance sheet. Investors also form their own opinion of Companhia Siderurgica's value that differs from its market value or its book value, called intrinsic value, which is Companhia Siderurgica'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 Companhia Siderurgica's market value can be influenced by many factors that don't directly affect Companhia Siderurgica'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 Companhia Siderurgica's value and its price as these two are different measures arrived at by different means. Investors typically determine if Companhia Siderurgica is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Companhia Siderurgica'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.