Banco Beneish M Score

BCH
 Stock
  

USD 18.54  0.76  3.94%   

This module uses fundamental data of Banco DE to approximate the value of its Beneish M Score. Banco DE 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. Continue to Banco DE Piotroski F Score and Banco DE Altman Z Score analysis.
  
The current Debt to Equity Ratio is estimated to increase to 10.32, while Total Debt is projected to decrease to roughly 9398.2 B. Banco DE Dividends per Basic Common Share is most likely to slightly decrease in the upcoming years. The last year's value of Dividends per Basic Common Share was reported at 0.61. The current Enterprise Value over EBIT is estimated to increase to 20.85, while Asset Turnover is projected to decrease to 0.0441.
At this time, it appears that Banco DE Chile is an unlikely manipulator. The earnings manipulation may begin if Banco DE'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 Banco DE 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 Banco DE'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.
-3.58
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense Coverage1.14Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.14Focus
Depreciation Resistance1.1Focus
Net Sales Growth0.91Focus
Financial Leverage ConditionN/AFocus

Banco DE 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 Banco DE'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
Revenues2014.3 B2214.9 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense807.2 B775.6 B
Sufficiently Up
Increasing
Slightly volatile
Net Cash Flow from Operations3242.9 B3005.6 B
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion66.4 B76.8 B
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net312.5 B322.5 B
Sufficiently Down
Increasing
Slightly volatile
Total Debt9398.2 B10476.9 B
Moderately Down
Increasing
Slightly volatile
Operating Income1109 B1330.5 B
Fairly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Banco DE 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

905.31 Billion

Banco DE Operating Expenses is most likely to increase significantly in the upcoming years. The last year's value of Operating Expenses was reported at 884.42 Billion

Banco DE 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 Banco DE. 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)
Revenues1,466.29 B1,596.3 B1,673.62 B1,387.7 B2,214.91 B2,014.28 B
Property Plant and Equipment Net216.26 B215.87 B370.93 B336.76 B322.51 B312.54 B
Depreciation Amortization and Accretion37.54 B37.68 B70.54 B73.36 B76.8 B66.42 B
Selling General and Administrative Expense720.79 B772.11 B805.3 B776.06 B775.58 B807.17 B
Total Debt7,804.92 B7,404.15 B7,821.17 B9,110.33 B10,476.87 B9,398.17 B
Operating Income681.93 B756.59 B771.37 B509.95 B1,330.49 B1,108.97 B
Net Cash Flow from Operations872.56 B(1,334.74 B)1,388.97 B(2,472.36 B)3,005.64 B3,242.93 B

About Banco DE Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Banco DE Chile's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Banco DE using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Banco DE Chile 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.
Banco de Chile, together with its subsidiaries, provides banking and financial products and services to customers in Chile. Banco de Chile was founded in 1893 and is headquartered in Santiago, Chile. Banco DE operates under Banks - Regional classification in the United States and is traded on New York Stock Exchange.
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 Banco DE 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, Banco DE's short interest history, or implied volatility extrapolated from Banco DE options trading.

Pair Trading with Banco DE

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 Banco DE 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 Banco DE will appreciate offsetting losses from the drop in the long position's value.

Moving together with Banco DE

0.89BSACBanco Santander Chile Downward RallyPairCorr
The ability to find closely correlated positions to Banco DE could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Banco DE 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 Banco DE - 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 Banco DE Chile to buy it.
The correlation of Banco DE 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 Banco DE moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Banco DE Chile 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 Banco DE 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
Continue to Banco DE Piotroski F Score and Banco DE Altman Z Score analysis. Note that the Banco DE Chile information on this page should be used as a complementary analysis to other Banco DE'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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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When running Banco DE Chile price analysis, check to measure Banco DE'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 Banco DE is operating at the current time. Most of Banco DE's value examination focuses on studying past and present price action to predict the probability of Banco DE's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Banco DE's price. Additionally, you may evaluate how the addition of Banco DE to your portfolios can decrease your overall portfolio volatility.
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Is Banco DE'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 Banco DE. If investors know Banco 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 Banco DE 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
1.64
Market Capitalization
9.3 B
Quarterly Revenue Growth YOY
0.77
Return On Assets
0.0234
Return On Equity
0.28
The market value of Banco DE Chile is measured differently than its book value, which is the value of Banco that is recorded on the company's balance sheet. Investors also form their own opinion of Banco DE's value that differs from its market value or its book value, called intrinsic value, which is Banco DE'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 Banco DE's market value can be influenced by many factors that don't directly affect Banco DE'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 Banco DE's value and its price as these two are different measures arrived at by different means. Investors typically determine Banco DE value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Banco DE'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.