Advanced Beneish M Score

ADES
 Stock
  

USD 2.83  0.08  2.75%   

This module uses fundamental data of Advanced Emissions to approximate the value of its Beneish M Score. Advanced Emissions 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 Advanced Emissions Piotroski F Score and Advanced Emissions Altman Z Score analysis.
  
Advanced Emissions Total Debt is relatively stable at the moment as compared to the past year. Advanced Emissions reported last year Total Debt of 4.16 Million. As of 12/03/2022, Debt Current is likely to grow to about 1 M, while Issuance Repayment of Debt Securities is likely to drop (17.6 M). Advanced Emissions Return on Investment is relatively stable at the moment as compared to the past year. Advanced Emissions reported last year Return on Investment of 1.65. As of 12/03/2022, Cash Flow Per Share is likely to grow to 1.49, while Gross Margin is likely to drop 31.08.
At this time, it appears that Advanced Emissions is an unlikely manipulator. The earnings manipulation may begin if Advanced Emissions' 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 Advanced Emissions 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 Advanced Emissions' 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.
-3.22
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.95Focus
Asset Quality1.02Focus
Expense Coverage1.06Focus
Gross Margin Strengs0.9Focus
Accruals Factor1.06Focus
Depreciation Resistance0.9Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.27Focus

Advanced Emissions 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 Advanced Emissions' 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
Selling General and Administrative Expense28.1 M24.6 M
Fairly Up
Increasing
Stable
Revenues108.2 M100.3 M
Significantly Up
Increasing
Stable
Trade and Non Trade Receivables15.4 M15.1 M
Fairly Up
Increasing
Slightly volatile
Property Plant and Equipment Net28.6 M30.2 M
Notably Down
Increasing
Very volatile
Operating Income2.3 M2.1 M
Significantly Up
Increasing
Stable
Net Cash Flow from Operations28.1 M26 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current21.7 M15.5 M
Significantly Up
Increasing
Stable
Current Liabilities32.3 M22.6 M
Significantly Up
Decreasing
Stable
Total Liabilities53.6 M38.1 M
Significantly Up
Decreasing
Very volatile
Investments Non Current13.9 M10 M
Significantly Up
Increasing
Slightly volatile
Investments Current822.6 K587.6 K
Significantly Up
Decreasing
Stable
Investments14 M10 M
Significantly Up
Increasing
Stable
Gross Margin31.0834.6162
Moderately Down
Increasing
Very volatile
Depreciation Amortization and Accretion8.6 M7.9 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current3.2 M3.2 M
Fairly Up
Increasing
Stable
Debt CurrentMM
Fairly Up
Increasing
Stable
Total Debt4.3 M4.2 M
Fairly Up
Increasing
Stable
Assets Non Current76.6 M77.1 M
Slightly Down
Increasing
Slightly volatile
Current Assets116.9 M108.4 M
Significantly Up
Increasing
Slightly volatile
Total Assets200.1 M185.4 M
Significantly Up
Increasing
Slightly volatile

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

About Advanced Emissions 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

8.56 Million

Advanced Emissions Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. Advanced Emissions reported last year Depreciation Amortization and Accretion of 7.93 Million

Advanced Emissions 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 Advanced Emissions. 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)
Revenues35.69 M23.95 M70.09 M61.58 M100.29 M108.21 M
Total Assets82.62 M159.66 M173.8 M146.67 M185.44 M200.08 M
Current Assets36.89 M59.78 M47.05 M61.99 M108.37 M116.92 M
Assets Non Current45.73 M99.89 M126.75 M84.68 M77.07 M76.62 M
Total Liabilities9.16 M91.72 M65.51 M61.46 M38.13 M53.6 M
Current Liabilities6.88 M40.72 M39.31 M42.54 M22.62 M32.3 M
Operating Income(13.81 M)(6.4 M)(14.89 M)(40.98 M)2.15 M2.32 M
Investments4.35 M11.83 M44.16 M12.69 M10.03 M14.01 M
Gross Margin10.6773.8929.4527.5534.6231.08

About Advanced Emissions Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Advanced Emissions Solutions's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Advanced Emissions using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Advanced Emissions Solutions 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.
Advanced Emissions Solutions, Inc., together with its subsidiaries, provides environmental technologies and specialty chemicals in the United States. Advanced Emissions Solutions, Inc. was founded in 1996 and is headquartered in Greenwood Village, Colorado. Advanced Emissions operates under Pollution Treatment Controls classification in the United States and is traded on NASDAQ Exchange. It employs 1 people.
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 Advanced Emissions 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, Advanced Emissions' short interest history, or implied volatility extrapolated from Advanced Emissions options trading.

Pair Trading with Advanced Emissions

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 Advanced Emissions 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 Advanced Emissions will appreciate offsetting losses from the drop in the long position's value.

Moving together with Advanced Emissions

+0.7ACTGAcacia Research Aggressive PushPairCorr
The ability to find closely correlated positions to Advanced Emissions could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Advanced Emissions 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 Advanced Emissions - 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 Advanced Emissions Solutions to buy it.
The correlation of Advanced Emissions 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 Advanced Emissions moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Advanced Emissions 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 Advanced Emissions 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 Advanced Emissions Piotroski F Score and Advanced Emissions Altman Z Score analysis. Note that the Advanced Emissions information on this page should be used as a complementary analysis to other Advanced Emissions' 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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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When running Advanced Emissions price analysis, check to measure Advanced Emissions' 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 Advanced Emissions is operating at the current time. Most of Advanced Emissions' value examination focuses on studying past and present price action to predict the probability of Advanced Emissions' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Advanced Emissions' price. Additionally, you may evaluate how the addition of Advanced Emissions to your portfolios can decrease your overall portfolio volatility.
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Is Advanced Emissions' 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 Advanced Emissions. If investors know Advanced 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 Advanced Emissions 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
12.28
Market Capitalization
54.1 M
Quarterly Revenue Growth YOY
(0.08) 
Return On Assets
(0.0294) 
Return On Equity
5.0E-4
The market value of Advanced Emissions is measured differently than its book value, which is the value of Advanced that is recorded on the company's balance sheet. Investors also form their own opinion of Advanced Emissions' value that differs from its market value or its book value, called intrinsic value, which is Advanced Emissions' 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 Advanced Emissions' market value can be influenced by many factors that don't directly affect Advanced Emissions' 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 Advanced Emissions' value and its price as these two are different measures arrived at by different means. Investors typically determine Advanced Emissions value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Advanced Emissions' 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.