Alpha Technology Group Stock Beneish M Score

ATGL Stock   13.30  0.64  5.06%   
This module uses fundamental data of Alpha Technology to approximate the value of its Beneish M Score. Alpha 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 Alpha Technology Piotroski F Score and Alpha Technology Altman Z Score analysis.
  
At this time, Alpha Technology's Debt Equity Ratio is quite stable compared to the past year. Cash Flow To Debt Ratio is expected to rise to 2.76 this year, although the value of Short and Long Term Debt will most likely fall to about 614.2 K. At this time, Alpha Technology's PB Ratio is quite stable compared to the past year. EV To Sales is expected to rise to 111.29 this year, although the value of Capex To Depreciation will most likely fall to 0.07.
At this time, it appears that Alpha Technology is an unlikely manipulator. The earnings manipulation may begin if Alpha 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 Alpha 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 Alpha 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.
-3.12
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

2.23

Focus
Asset Quality

N/A

Focus
Expense Coverage

0.97

Focus
Gross Margin Strengs

0.87

Focus
Accruals Factor

0.97

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.63

Focus
Financial Leverage Condition

0.47

Focus

Alpha 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 Alpha 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 Receivables1.2 M838.1 K
Significantly Up
Slightly volatile
Total Revenue6.3 M10 M
Way Down
Slightly volatile
Total Assets48.9 M46.6 M
Sufficiently Up
Slightly volatile
Total Current Assets30.8 M29.4 M
Sufficiently Up
Slightly volatile
Non Current Assets Total18.1 M17.3 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization930 K885.7 K
Sufficiently Up
Slightly volatile
Selling General Administrative3.9 M6.3 M
Way Down
Slightly volatile
Total Current Liabilities12.1 M23.1 M
Way Down
Slightly volatile
Non Current Liabilities Total1.4 M948.9 K
Way Up
Slightly volatile
Short Term Debt586.5 K611.2 K
Sufficiently Down
Slightly volatile
Long Term Debt1.2 M820.1 K
Way Up
Slightly volatile
Gross Profit Margin0.330.38
Fairly Down
Slightly volatile

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

About Alpha 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.

Depreciation And Amortization

930,023

At this time, Alpha Technology's Depreciation And Amortization is quite stable compared to the past year.

About Alpha Technology Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Alpha Technology Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Alpha Technology using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Alpha 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 Alpha Technology is a strong investment it is important to analyze Alpha 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 Alpha Technology's future performance. For an informed investment choice regarding Alpha Stock, refer to the following important reports:
Check out Alpha Technology Piotroski F Score and Alpha Technology Altman Z Score analysis.
You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Is IT Consulting & Other 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 Alpha Technology. If investors know Alpha 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 Alpha 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
(0.08)
Revenue Per Share
0.448
Quarterly Revenue Growth
0.087
Return On Assets
(0.10)
Return On Equity
(0.25)
The market value of Alpha Technology is measured differently than its book value, which is the value of Alpha that is recorded on the company's balance sheet. Investors also form their own opinion of Alpha Technology's value that differs from its market value or its book value, called intrinsic value, which is Alpha 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 Alpha Technology's market value can be influenced by many factors that don't directly affect Alpha 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 Alpha Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alpha Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alpha 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.