Sachem Capital Corp Stock Beneish M Score

SCCC Stock  USD 24.50  0.08  0.33%   
This module uses fundamental data of Sachem Capital to approximate the value of its Beneish M Score. Sachem Capital 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 Sachem Capital Piotroski F Score and Sachem Capital Altman Z Score analysis.
  
At present, Sachem Capital's Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 92.7 M, whereas Long Term Debt is forecasted to decline to about 91 M. At present, Sachem Capital's PTB Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Stock Based Compensation To Revenue is expected to grow to 0.03, whereas Dividend Yield is forecasted to decline to 16.89.
At this time, it appears that Sachem Capital Corp is an unlikely manipulator. The earnings manipulation may begin if Sachem Capital'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 Sachem Capital 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 Sachem Capital'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.
-2.52
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.89

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Sachem Capital 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 Sachem Capital'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 Receivables525.2 B500.2 B
Sufficiently Up
Slightly volatile
Total Revenue31.5 B30 B
Sufficiently Up
Slightly volatile
Total Assets656.8 B625.5 B
Sufficiently Up
Slightly volatile
Total Current Assets578.1 B550.6 B
Sufficiently Up
Slightly volatile
Non Current Assets Total3.8 BB
Notably Down
Slightly volatile
Property Plant Equipment1.5 M1.6 M
Significantly Down
Slightly volatile
Selling General Administrative5.1 B4.8 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total410.4 B390.8 B
Sufficiently Up
Slightly volatile
Short Term Debt92.7 M88.3 M
Sufficiently Up
Slightly volatile
Long Term Debt91 M126.4 M
Way Down
Slightly volatile
Total Cash From Operating Activities22.9 B21.9 B
Sufficiently Up
Slightly volatile
Short Term Investments39.7 B37.8 B
Sufficiently Up
Slightly volatile
Long Term Investments142 M179 M
Significantly Down
Slightly volatile
Gross Profit Margin0.80.9
Fairly Down
Slightly volatile

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

About Sachem Capital 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

(2.27 Billion)

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

Sachem Capital 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 Sachem Capital. 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 Receivables2.4M3.9M7.5M11.6M500.2B525.2B
Total Revenue9.7M13.1B20.0B52.3M30.0B31.5B
Total Assets141.2M226.7B418.0B565.7B625.5B656.8B
Total Current Assets37.1M19.4B41.9B23.7B550.6B578.1B
Non Current Assets Total17.3M207.3B376.0B541.9B4.0B3.8B
Depreciation And Amortization63.6K61.9K83.5K106.4K(2.4B)(2.3B)
Selling General Administrative2.0M1.2B2.2B3.1M4.8B5.1B
Total Current Liabilities2.3M(3.3M)(164.7M)(323.4M)4.6B4.9B
Non Current Liabilities Total56.3M145.8B237.9B348.0B390.8B410.4B
Net Debt37.5M91.3B138.5B299.6B239.1B251.1B
Short Term Debt17.2K28.1M33.2M3.6M88.3M92.7M
Operating Income6.2M10.1B14.6B20.9M18.3B19.2B
Total Cash From Operating Activities8.1M9.6M28.1M13.1M21.9B22.9B

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

About Sachem Capital Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Sachem Capital Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Sachem Capital using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Sachem Capital Corp 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 Sachem Capital Corp is a strong investment it is important to analyze Sachem Capital'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 Sachem Capital's future performance. For an informed investment choice regarding Sachem Stock, refer to the following important reports:
Check out Sachem Capital Piotroski F Score and Sachem Capital Altman Z Score analysis.
You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Is Trading 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 Sachem Capital. If investors know Sachem 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 Sachem Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Sachem Capital Corp is measured differently than its book value, which is the value of Sachem that is recorded on the company's balance sheet. Investors also form their own opinion of Sachem Capital's value that differs from its market value or its book value, called intrinsic value, which is Sachem Capital'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 Sachem Capital's market value can be influenced by many factors that don't directly affect Sachem Capital'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 Sachem Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sachem Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sachem Capital'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.