Aarons Beneish M Score

AAN
 Stock
  

USD 14.60  0.40  2.67%   

This module uses fundamental data of Aarons Holdings to approximate the value of its Beneish M Score. Aarons Holdings 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 Aarons Holdings Piotroski F Score and Aarons Holdings Altman Z Score analysis.
  
Aarons Holdings Total Debt is quite stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 347.41 Million. Issuance Repayment of Debt Securities is expected to rise to about 10 M this year, although the value of Debt to Equity Ratio will most likely fall to 0.98. Aarons Holdings Accounts Payable Turnover is quite stable at the moment as compared to the past year. The company's current value of Accounts Payable Turnover is estimated at 48.81. Accrued Expenses Turnover is expected to rise to 17.90 this year, although the value of PPandE Turnover will most likely fall to 14.53.
At this time, it appears that Aarons Holdings is an unlikely manipulator. The earnings manipulation may begin if Aarons Holdings' 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 Aarons Holdings 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 Aarons Holdings' 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.
-2.89
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.97Focus
Asset QualityN/AFocus
Expense Coverage1.0Focus
Gross Margin Strengs1.08Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.09Focus
Financial Leverage Condition1.04Focus

Aarons Holdings 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 Aarons Holdings' 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
RevenuesB1.8 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense540.4 M495.4 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations184.4 M136 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion731.2 M687 M
Notably Up
Increasing
Slightly volatile
Total Assets1.4 B1.4 B
Slightly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net1.4 B1.3 B
Notably Up
Increasing
Slightly volatile
Trade and Non Trade Receivables31 M29.4 M
Sufficiently Up
Decreasing
Slightly volatile
Total Liabilities729.9 M723.1 M
Slightly Up
Decreasing
Stable
Current Assets989.5 M744.2 M
Significantly Up
Decreasing
Stable
Current Liabilities115.3 M112.3 M
Fairly Up
Decreasing
Stable
Total Debt347.4 M319.8 M
Significantly Up
Decreasing
Stable
Operating Income157.3 M145.7 M
Significantly Up
Decreasing
Stable
Gross Margin0.680.628
Significantly Up
Increasing
Slightly volatile

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

About Aarons Holdings 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 Expenses

1.17 Billion

Aarons Holdings Operating Expenses is quite stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 1.17 Billion

About Aarons Holdings Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Aarons Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Aarons Holdings using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Aarons Holdings 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.
The Aarons Company, Inc. provides lease-to-own and purchase solutions. The Aarons Company, Inc. was founded in 1955 and is headquartered in Atlanta, Georgia. Aarons Holdings operates under Rental Leasing Services classification in the United States and is traded on New York Stock Exchange. It employs 9170 people.

Aarons Holdings Investors Sentiment

The influence of Aarons Holdings' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Aarons. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Aarons Holdings' public news can be used to forecast risks associated with investment in Aarons. The trend in average sentiment can be used to explain how an investor holding Aarons can time the market purely based on public headlines and social activities around Aarons Holdings. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Aarons Holdings' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Aarons Holdings' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Aarons Holdings' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Aarons Holdings.

Aarons Holdings Implied Volatility

    
  219.38  
Aarons Holdings' implied volatility exposes the market's sentiment of Aarons Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Aarons Holdings' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Aarons Holdings stock will not fluctuate a lot when Aarons Holdings' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Aarons Holdings in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Aarons Holdings' short interest history, or implied volatility extrapolated from Aarons Holdings options trading.

Pair Trading with Aarons Holdings

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 Aarons Holdings 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 Aarons Holdings will appreciate offsetting losses from the drop in the long position's value.

Moving together with Aarons Holdings

0.7BBWBuild-A-Bear Workshop Earnings Call  This WeekPairCorr

Moving against Aarons Holdings

0.69AZOAutozone Fiscal Year End 20th of September 2022 PairCorr
0.66GMEGamestop Corp Normal TradingPairCorr
0.6BOWLBowlero Corp Cl Downward RallyPairCorr
0.56BQBoqii Holding Earnings Call  TodayPairCorr
The ability to find closely correlated positions to Aarons Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aarons Holdings 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 Aarons Holdings - 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 Aarons Holdings to buy it.
The correlation of Aarons Holdings 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 Aarons Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aarons Holdings 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 Aarons Holdings 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 Aarons Holdings Piotroski F Score and Aarons Holdings Altman Z Score analysis. Note that the Aarons Holdings information on this page should be used as a complementary analysis to other Aarons Holdings' 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Complementary Tools for Aarons Stock analysis

When running Aarons Holdings price analysis, check to measure Aarons Holdings' 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 Aarons Holdings is operating at the current time. Most of Aarons Holdings' value examination focuses on studying past and present price action to predict the probability of Aarons Holdings' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Aarons Holdings' price. Additionally, you may evaluate how the addition of Aarons Holdings to your portfolios can decrease your overall portfolio volatility.
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Is Aarons Holdings' 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 Aarons Holdings. If investors know Aarons 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 Aarons Holdings 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
-0.35
Market Capitalization
451.5 M
Quarterly Revenue Growth YOY
0.31
Return On Assets
0.0799
Return On Equity
0.0782
The market value of Aarons Holdings is measured differently than its book value, which is the value of Aarons that is recorded on the company's balance sheet. Investors also form their own opinion of Aarons Holdings' value that differs from its market value or its book value, called intrinsic value, which is Aarons Holdings' 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 Aarons Holdings' market value can be influenced by many factors that don't directly affect Aarons Holdings' 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 Aarons Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine Aarons Holdings value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aarons Holdings' 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.