Altisource Beneish M Score

AAMC
 Stock
  

USD 22.56  3.09  15.87%   

This module uses fundamental data of Altisource Asset to approximate the value of its Beneish M Score. Altisource Asset 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. Please continue to Altisource Asset Piotroski F Score and Altisource Asset Altman Z Score analysis.
  
Altisource Asset Total Debt is projected to decrease significantly based on the last few years of reporting. The past year's Total Debt was at 720,000. The current year Debt Non Current is expected to grow to about 763.9 K, whereas Issuance Repayment of Debt Securities is forecasted to decline to (70.4 M). Altisource Asset Interest Coverage is projected to drop based on the last few years of reporting. The past year's Interest Coverage was at 0.1. The current year Receivables Turnover is expected to grow to 1.03, whereas Operating Margin is forecasted to decline to (67.58) .
At this time, it appears that Altisource Asset Man is an unlikely manipulator. The earnings manipulation may begin if Altisource Asset'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 Altisource Asset 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 Altisource Asset'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.
-2.61
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality0.96Focus
Expense Coverage1.13Focus
Gross Margin Strengs1.0Focus
Accruals Factor1.13Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.03Focus
Financial Leverage Condition1.0Focus

Altisource Asset 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 Altisource Asset'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
Revenues14.7 M14.3 M
Fairly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense17.6 M15.2 M
Fairly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations(19.1 M)(17.7 M)
Significantly Down
Increasing
Stable
Depreciation Amortization and Accretion459.8 K448 K
Fairly Up
Decreasing
Very volatile
Total Assets83.6 M81.5 M
Fairly Up
Decreasing
Slightly volatile
Investments43.7 M42.6 M
Fairly Up
Decreasing
Slightly volatile
Investments Current58.8 M54.5 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net846.7 K825 K
Fairly Up
Decreasing
Stable
Trade and Non Trade Receivables3.2 M3.1 M
Fairly Up
Decreasing
Slightly volatile
Total Liabilities8.2 MM
Fairly Up
Decreasing
Slightly volatile
Current Assets80.4 M80.2 M
Slightly Up
Increasing
Stable
Assets Non Current1.9 M1.3 M
Way Up
Increasing
Stable
Current Liabilities5.8 M4.6 M
Significantly Up
Decreasing
Slightly volatile
Liabilities Non Current3.3 M3.4 M
Fairly Down
Decreasing
Slightly volatile
Total Debt738.9 K720 K
Fairly Up
Decreasing
Slightly volatile
Debt Non Current763.9 K720 K
Notably Up
Increasing
Stable
Operating Income(21.1 M)(20.6 M)
Fairly Down
Decreasing
Slightly volatile
Gross Margin1.151.15
Steady
Increasing
Slightly volatile

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

About Altisource Asset 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 Amortization and Accretion

459,789

Altisource Asset Depreciation Amortization and Accretion is projected to decrease significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 448,000

Altisource Asset 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 Altisource Asset. 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.
201720182019202020212022 (projected)
Revenues248.1 M19.99 M18.16 M15.93 M14.33 M14.71 M
Total Assets60.39 M49.37 M53.25 M99.75 M81.48 M83.62 M
Current Assets58.41 M47.46 M47.15 M96.61 M80.19 M80.37 M
Total Liabilities7.74 M6.77 M11.22 M16.33 M8 M8.21 M
Current Liabilities7.74 M6.77 M7 M13.1 M4.59 M5.77 M
Operating Income(7.35 M)(6.61 M)(17.14 M)(20.51 M)(20.59 M)(21.13 M)
Investments19.89 M14.77 M20.05 M47.35 M42.62 M43.74 M
Investments Current19.89 M14.77 M20.05 M47.35 M54.46 M58.76 M

About Altisource Asset Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Altisource Asset Management's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Altisource Asset using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Altisource Asset Management 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.
Altisource Asset Management Corporation is an alternative lending company that provides liquidity and capital to under-served market and portfolio management and corporate governance services to institutional investors in the United States. Altisource Asset Management Corporation was founded in 2012 and is headquartered in Christiansted, Virgin Islands with the additional in United States and India. Altisource Asset operates under Asset Management classification in the United States and is traded on NYSEMKT Exchange. It employs 24 people.

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Our tools can tell you how much better you can do entering a position in Altisource Asset without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Altisource Asset

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 Altisource Asset 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 Altisource Asset will appreciate offsetting losses from the drop in the long position's value.

Moving together with Altisource Asset

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The ability to find closely correlated positions to Altisource Asset could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Altisource Asset 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 Altisource Asset - 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 Altisource Asset Management to buy it.
The correlation of Altisource Asset is a statistical measure of how it moves in relation to other equities. 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 Altisource Asset moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Altisource Asset Man 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 Altisource Asset 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
Please continue to Altisource Asset Piotroski F Score and Altisource Asset Altman Z Score analysis. Note that the Altisource Asset Man information on this page should be used as a complementary analysis to other Altisource Asset's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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When running Altisource Asset Man price analysis, check to measure Altisource Asset'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 Altisource Asset is operating at the current time. Most of Altisource Asset's value examination focuses on studying past and present price action to predict the probability of Altisource Asset's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Altisource Asset's price. Additionally, you may evaluate how the addition of Altisource Asset to your portfolios can decrease your overall portfolio volatility.
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Is Altisource Asset's industry 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 Altisource Asset. If investors know Altisource 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 Altisource Asset 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 YOY
-0.98
Market Capitalization
40.1 M
Quarterly Revenue Growth YOY
0.008
Return On Assets
-0.11
Return On Equity
-0.28
The market value of Altisource Asset Man is measured differently than its book value, which is the value of Altisource that is recorded on the company's balance sheet. Investors also form their own opinion of Altisource Asset's value that differs from its market value or its book value, called intrinsic value, which is Altisource Asset'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 Altisource Asset's market value can be influenced by many factors that don't directly affect Altisource Asset'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 Altisource Asset's value and its price as these two are different measures arrived at by different means. Investors typically determine Altisource Asset value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Altisource Asset'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.