Canoe Eit Income Stock Beneish M Score

EIT-UN Stock  CAD 15.07  0.21  1.37%   
This module uses fundamental data of Canoe EIT to approximate the value of its Beneish M Score. Canoe EIT 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, which includes a position in Canoe EIT Income. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment.
  
At present, Canoe EIT's Short and Long Term Debt Total is projected to decrease significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 119 M, whereas Net Debt is forecasted to decline to about 53.4 M. At present, Canoe EIT's Dividend Yield is projected to increase slightly based on the last few years of reporting. The current year's PTB Ratio is expected to grow to 1.03, whereas Price To Sales Ratio is forecasted to decline to 7.02.
At this time, Canoe EIT's M Score is inapplicable. The earnings manipulation may begin if Canoe EIT'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 Canoe EIT 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 Canoe EIT'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.
-1.8
Beneish M Score - Inapplicable
Elasticity of Receivables

1.71

Focus
Asset Quality

N/A

Focus
Expense Coverage

0.81

Focus
Gross Margin Strengs

0.85

Focus
Accruals Factor

0.81

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.94

Focus
Financial Leverage Condition

0.89

Focus

Canoe EIT 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 Canoe EIT'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 Receivables9.7 M6.1 M
Way Up
Slightly volatile
Total Assets1.9 B2.7 B
Way Down
Slightly volatile
Total Current Assets19.8 M20.8 M
Notably Down
Slightly volatile
Non Current Assets Total1.7 B2.6 B
Way Down
Slightly volatile
Selling General Administrative5.7 M7.5 M
Way Down
Pretty Stable
Total Current Liabilities83.6 M135.7 M
Way Down
Slightly volatile
Non Current Liabilities Total88.6 M96 M
Significantly Down
Slightly volatile
Short Term Debt119 M96 M
Fairly Up
Slightly volatile
Short Term Investments1.3 B1.1 B
Significantly Up
Slightly volatile
Long Term Investments1.9 B2.6 B
Way Down
Slightly volatile
Gross Profit Margin0.710.8352
Fairly Down
Very volatile

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

About Canoe EIT 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

(146.35 Million)

At present, Canoe EIT's Depreciation And Amortization is projected to decrease significantly based on the last few years of reporting.

Canoe EIT 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 Canoe EIT. 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 Receivables2.6M3.2M5.7M6.7M6.1M9.7M
Total Revenue187.7M80.5M597.1M278.1M172.5M162.2M
Total Assets1.6B1.5B2.2B2.5B2.7B1.9B
Total Current Assets169.7M46.9M151.2M104.9M20.8M19.8M
Net Debt(73.1M)48.5M(53.8M)(139K)81.2M53.4M
Short Term Debt94.1M92.2M91.6M98.1M96.0M119.0M
Operating Income167.6M59.6M575.9M255.4M139.4M136.6M
Gross Profit Margin1.350.90.750.970.840.71

About Canoe EIT Fundamental Analysis

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

Pair Trading with Canoe EIT

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Canoe EIT position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Canoe EIT will appreciate offsetting losses from the drop in the long position's value.

Moving together with Canoe Stock

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Moving against Canoe Stock

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The ability to find closely correlated positions to Canoe EIT could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canoe EIT when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Canoe EIT - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Canoe EIT Income to buy it.
The correlation of Canoe EIT is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Canoe EIT moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canoe EIT Income moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Canoe EIT can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Other Information on Investing in Canoe Stock

Canoe EIT financial ratios help investors to determine whether Canoe Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Canoe with respect to the benefits of owning Canoe EIT security.