Premium Income Stock Beneish M Score

PIC-A Stock  CAD 6.03  0.01  0.17%   
This module uses fundamental data of Premium Income to approximate the value of its Beneish M Score. Premium Income 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 Your Equity Center to better understand how to build diversified portfolios, which includes a position in Premium 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 nation.
  
At this time, Premium Income's Debt To Equity is comparatively stable compared to the past year. Debt Equity Ratio is likely to gain to 30.43 in 2024, whereas Net Debt is likely to drop slightly above 132.3 M in 2024. At this time, Premium Income's PTB Ratio is comparatively stable compared to the past year. PB Ratio is likely to gain to 10.85 in 2024, despite the fact that Days Sales Outstanding is likely to grow to (21.04).
At this time, Premium Income's M Score is inapplicable. The earnings manipulation may begin if Premium Income'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 Premium Income 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 Premium Income'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.
-3.28
Beneish M Score - Inapplicable
Elasticity of Receivables

1.0

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.11

Focus
Gross Margin Strengs

1.35

Focus
Accruals Factor

1.11

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.95

Focus
Financial Leverage Condition

0.81

Focus

Premium Income 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 Premium Income'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 Receivables1.3 M1.4 M
Notably Down
Pretty Stable
Total Assets206.1 M213.4 M
Sufficiently Down
Slightly volatile
Total Current Assets8.1 M7.4 M
Significantly Up
Pretty Stable
Non Current Assets Total197.9 M206 M
Sufficiently Down
Slightly volatile
Selling General Administrative3.7 M3.5 M
Sufficiently Up
Slightly volatile
Total Current Liabilities277.8 M264.5 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total200.1 M264.1 M
Way Down
Slightly volatile
Short Term Debt198.6 M264.1 M
Way Down
Slightly volatile
Short Term Investments3.6 M3.8 M
Notably Down
Pretty Stable
Long Term Investments266.3 M263.2 M
Fairly Up
Slightly volatile
Gross Profit Margin0.420.31
Significantly Up
Slightly volatile

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

About Premium Income 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

39.19 Million

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

Premium Income 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 Premium Income. 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 Receivables1.7M1.2M1.4M1.5M1.4M1.3M
Total Revenue(44.4M)111.0M41.5M(29.1M)(33.4M)(31.8M)
Total Assets215.5M303.4M256.8M237.2M213.4M206.1M
Total Current Assets3.6M4.6M3.9M8.3M7.4M8.1M
Non Current Assets Total211.9M298.8M252.9M228.9M206.0M197.9M
Depreciation And Amortization45.4M(110.2M)21.3M32.5M37.3M39.2M
Selling General Administrative810.4K627.4K3.4M3.1M3.5M3.7M
Total Current Liabilities202.7M6.2M314.3K230.0M264.5M277.8M
Net Debt199.8M194.4M197.3M226.2M260.1M132.3M
Operating Income(45.5M)110.1M(22.9M)(32.5M)(29.2M)(27.7M)
Total Cash From Operating Activities15.3M23.0M24.3M(8.6M)(7.8M)(7.4M)
Short Term Investments211.9M298.8M252.9M3.3M3.8M3.6M
Long Term Investments211.9M298.8M249.8M228.9M263.2M266.3M

About Premium Income Fundamental Analysis

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

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 Premium Income 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 Premium Income will appreciate offsetting losses from the drop in the long position's value.

Moving against Premium Stock

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The ability to find closely correlated positions to Premium Income could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Premium Income 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 Premium Income - 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 Premium Income to buy it.
The correlation of Premium Income 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 Premium Income moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Premium 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 Premium Income 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

Additional Tools for Premium Stock Analysis

When running Premium Income's price analysis, check to measure Premium Income'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 Premium Income is operating at the current time. Most of Premium Income's value examination focuses on studying past and present price action to predict the probability of Premium Income's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Premium Income's price. Additionally, you may evaluate how the addition of Premium Income to your portfolios can decrease your overall portfolio volatility.