General American Investors Stock Beneish M Score

GAM Stock  USD 50.50  0.09  0.18%   
This module uses fundamental data of General American to approximate the value of its Beneish M Score. General American 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 General American Piotroski F Score and General American Altman Z Score analysis.
  
At this time, General American's Debt Equity Ratio is very stable compared to the past year. As of the 21st of March 2025, Debt Ratio is likely to grow to 0, while Long Term Debt is likely to drop about 4.4 M. At this time, General American's PE Ratio is very stable compared to the past year. As of the 21st of March 2025, Current Ratio is likely to grow to 2.90, while Book Value Per Share is likely to drop 46.33.
At this time, it appears that General American Inv is a possible manipulator. The earnings manipulation may begin if General American'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 General American 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 General American'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.
-0.39
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.92

Focus
Asset Quality

0.52

Focus
Expense Coverage

1.73

Focus
Gross Margin Strengs

0.8

Focus
Accruals Factor

1.73

Focus
Depreciation Resistance

1.03

Focus
Net Sales Growth

0.55

Focus
Financial Leverage Condition

2.16

Focus

General American 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 General American'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 Receivables12.3 M11.7 M
Sufficiently Up
Pretty Stable
Total Assets1.4 B1.6 B
Significantly Down
Very volatile
Non Current Assets Total1.4 B1.6 B
Significantly Down
Slightly volatile
Property Plant Equipment3.4 M3.2 M
Significantly Up
Slightly volatile
Selling General Administrative5.2 M5.5 M
Notably Down
Pretty Stable
Total Current LiabilitiesMM
Way Up
Slightly volatile
Non Current Liabilities Total4.2 M6.1 M
Way Down
Slightly volatile
Short Term Debt699 K762.5 K
Significantly Down
Slightly volatile
Long Term Debt4.4 M4.9 M
Fairly Down
Slightly volatile
Short Term Investments939.5 K908.3 K
Sufficiently Up
Slightly volatile
Long Term Investments1.4 B1.5 B
Significantly Down
Very volatile
Gross Profit Margin0.770.96
Significantly Down
Slightly volatile

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

About General American 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.

Operating Income

330.13 Million

At this time, General American's Operating Income is very stable compared to the past year.

General American 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 General American. 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.
202020212022202320242025 (projected)
Net Receivables1.1M1.6M3.8M5.8M11.7M12.3M
Total Revenue89.0M308.4M(164.7M)288.9M251.7M137.9M
Total Assets1.3B1.5B1.3B1.4B1.6B1.4B
Total Current Assets(3.4M)(2.4M)4.0M6.9M69.6K66.1K
Net Debt9.1M8.1M3.3M2.9M(69.6K)(66.1K)
Operating Income77.0M293.6M(177.3M)273.4M314.4M330.1M

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

About General American Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze General American Investors's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of General American using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of General American Investors 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 General American Inv is a strong investment it is important to analyze General American'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 General American's future performance. For an informed investment choice regarding General Stock, refer to the following important reports:
Check out General American Piotroski F Score and General American Altman Z Score analysis.
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Is Asset Management & Custody Banks 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 General American. If investors know General 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 General American 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
(0.81)
Dividend Share
4.75
Earnings Share
10.81
Revenue Per Share
1.21
Quarterly Revenue Growth
0.054
The market value of General American Inv is measured differently than its book value, which is the value of General that is recorded on the company's balance sheet. Investors also form their own opinion of General American's value that differs from its market value or its book value, called intrinsic value, which is General American'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 General American's market value can be influenced by many factors that don't directly affect General American'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 General American's value and its price as these two are different measures arrived at by different means. Investors typically determine if General American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, General American'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.