Ellington Financial Stock Beneish M Score

EFC-PE Stock   25.56  0.00  0.00%   
This module uses fundamental data of Ellington Financial to approximate the value of its Beneish M Score. Ellington Financial 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 Investing Opportunities to better understand how to build diversified portfolios. 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 present, Ellington Financial's Debt To Equity is projected to increase slightly based on the last few years of reporting. The current year's Interest Debt Per Share is expected to grow to 66.65, whereas Net Debt is forecasted to decline to (223.4 M). At present, Ellington Financial's Book Value Per Share is projected to slightly decrease based on the last few years of reporting. The current year's PB Ratio is expected to grow to 0.85, whereas Dividend Yield is forecasted to decline to 0.14.
At this time, it appears that Ellington Financial is an unlikely manipulator. The earnings manipulation may begin if Ellington Financial'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 Ellington Financial 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 Ellington Financial'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.
-3.11
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.55

Focus
Asset Quality

N/A

Focus
Expense Coverage

0.56

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

0.56

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.98

Focus
Financial Leverage Condition

0.83

Focus

Ellington Financial 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 Ellington Financial'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 Receivables285 M532.1 M
Way Down
Slightly volatile
Total Revenue250.3 M256.5 M
Fairly Down
Slightly volatile
Total Assets16.1 B15.3 B
Sufficiently Up
Slightly volatile
Total Current Assets10.9 B16.1 B
Way Down
Slightly volatile
Non Current Assets Total20.2 B29.6 B
Way Down
Slightly volatile
Depreciation And Amortization144.5 M192.9 M
Way Down
Slightly volatile
Selling General Administrative37.1 M68.5 M
Way Down
Slightly volatile
Total Current Liabilities460.4 M484.6 M
Notably Down
Pretty Stable
Non Current Liabilities Total13.9 B13.8 B
Slightly Up
Slightly volatile
Short Term Debt909.1 K957 K
Notably Down
Very volatile
Long Term Debt664 M747 M
Fairly Down
Slightly volatile
Operating Income339.7 M323.5 M
Sufficiently Up
Slightly volatile
Short Term Investments154.4 M173.1 M
Fairly Down
Slightly volatile
Long Term Investments9.7 B14.3 B
Way Down
Slightly volatile

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

About Ellington Financial 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

144.51 Million

At present, Ellington Financial's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

About Ellington Financial Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ellington Financial's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ellington Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ellington Financial 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 Ellington Financial offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ellington Financial'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 Ellington Financial Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ellington Financial Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios. 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.
You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Please note, there is a significant difference between Ellington Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ellington Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ellington Financial'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.