Ag Mortgage Investment Stock Beneish M Score

MITT Stock  USD 7.25  0.20  2.84%   
This module uses fundamental data of AG Mortgage to approximate the value of its Beneish M Score. AG Mortgage 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 AG Mortgage Piotroski F Score and AG Mortgage Altman Z Score analysis.
  
At this time, AG Mortgage's Total Debt To Capitalization is comparatively stable compared to the past year. Debt Equity Ratio is likely to gain to 11.06 in 2024, whereas Net Debt To EBITDA is likely to drop 20.59 in 2024. At this time, AG Mortgage's ROE is comparatively stable compared to the past year. EV To Operating Cash Flow is likely to gain to 208.51 in 2024, whereas PTB Ratio is likely to drop 0.24 in 2024.
At this time, it appears that AG Mortgage Investment is an unlikely manipulator. The earnings manipulation may begin if AG Mortgage'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 AG Mortgage 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 AG Mortgage'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.
-3.04
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.16

Focus
Asset Quality

1.02

Focus
Expense Coverage

1.71

Focus
Gross Margin Strengs

1.06

Focus
Accruals Factor

1.71

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.56

Focus
Financial Leverage Condition

1.65

Focus

AG Mortgage 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 AG Mortgage'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 Receivables19.8 M30.6 M
Way Down
Pretty Stable
Total Assets3.9 B6.1 B
Way Down
Slightly volatile
Total Current Assets102 M142.1 M
Way Down
Pretty Stable
Non Current Assets Total215.4 M226.8 M
Notably Down
Slightly volatile
Selling General Administrative1.7 M1.8 M
Notably Down
Very volatile
Total Current Liabilities762.4 M726.1 M
Sufficiently Up
Pretty Stable
Non Current Liabilities Total5.1 B4.9 B
Sufficiently Up
Very volatile
Short Term Debt1.3 B692.5 M
Way Up
Slightly volatile
Total Cash From Operating Activities50 M28.1 M
Way Up
Slightly volatile
Short Term Investments1.3 M1.3 M
Notably Down
Very volatile
Long Term Investments59.7 M62.8 M
Notably Down
Slightly volatile

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

About AG Mortgage 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

221.6 Million

At this time, AG Mortgage's Depreciation And Amortization is comparatively stable compared to the past year.

AG Mortgage 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 AG Mortgage. 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 Receivables15.2M3.9M16.2M21.4M30.6M19.8M
Total Revenue119.0M(390.4M)99.8M218K47.8M26.6M
Total Assets4.3B1.4B3.4B4.4B6.1B3.9B
Total Current Assets96.9M51.8M84.2M155.7M142.1M102.0M
Net Debt3.4B370.4M2.7B3.8B5.5B5.7B
Short Term Debt111.5M63.1M1.8B621.2M692.5M1.3B
Long Term Debt3.5B919.2M2.8B3.9B5.6B5.8B
Operating Income92.9M(420.9M)104.2M47.5M37.5M30.7M
Investments368.8M527.7M462.9M(1.5B)(470.3M)(446.8M)
Gross Profit Margin0.842.040.87(78.33)0.630.67

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

About AG Mortgage Fundamental Analysis

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

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked. Macroaxis thematic optimization helps investors identify companies most likely to benefit from changes or shifts in various micro-economic or local macro-level trends. Originating optimal thematic portfolios involves aligning investors' personal views, ideas, and beliefs with their actual investments.
Explore Investing Ideas  

Additional Tools for MITT Stock Analysis

When running AG Mortgage's price analysis, check to measure AG Mortgage's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AG Mortgage is operating at the current time. Most of AG Mortgage's value examination focuses on studying past and present price action to predict the probability of AG Mortgage's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AG Mortgage's price. Additionally, you may evaluate how the addition of AG Mortgage to your portfolios can decrease your overall portfolio volatility.