Banco Beneish M Score

BMA
 Stock
  

USD 13.71  0.36  2.70%   

This module uses fundamental data of Banco Macro to approximate the value of its Beneish M Score. Banco Macro 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 Macro Piotroski F Score and Banco Macro Altman Z Score analysis.
  
Banco Macro Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 112.9 Billion. The current year Debt to Equity Ratio is expected to grow to 3.81, whereas Issuance Repayment of Debt Securities is forecasted to decline to (7.3 B). Banco Macro Asset Turnover is projected to increase slightly based on the last few years of reporting. The past year's Asset Turnover was at 0.18. The current year Book Value per Share is expected to grow to 4,043, whereas Dividend Yield is forecasted to decline to 0.0484.
At this time, it appears that Banco Macro SA is an unlikely manipulator. The earnings manipulation may begin if Banco Macro'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 Macro 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 Macro'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.
-2.68
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.01Focus
Asset QualityN/AFocus
Expense Coverage1.0Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.0Focus
Depreciation Resistance1.13Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

Banco Macro 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 Macro'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
Revenues206.4 B191.3 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense64.3 B59.6 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations45.4 B44.7 B
Fairly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion6.7 B7.1 B
Notably Down
Increasing
Slightly volatile
Total Assets1078.2 B999.3 B
Significantly Up
Increasing
Slightly volatile
Investments829.4 B768.7 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net57 B52.9 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables1.6 B1.5 B
Significantly Up
Decreasing
Slightly volatile
Total Liabilities819.6 B759.7 B
Significantly Up
Increasing
Slightly volatile
Total Debt121.8 B112.9 B
Significantly Up
Increasing
Slightly volatile
Operating Income71.6 B90.4 B
Significantly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Banco Macro 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

108.87 Billion

Banco Macro Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 100.9 Billion

Banco Macro 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 Macro. 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)
Revenues86.6 B128.73 B246.65 B205.21 B191.26 B206.36 B
Total Assets338.07 B540.3 B606.15 B1,169.09 B999.3 B1,078.19 B
Property Plant and Equipment Net15.21 B23.91 B35.05 B51.88 B52.87 B57.05 B
Selling General and Administrative Expense31.03 B43.46 B69.87 B62.1 B59.57 B64.28 B
Total Liabilities266.32 B446.61 B461.76 B940.34 B759.66 B819.64 B
Total Debt35.45 B61.5 B70.8 B133.5 B112.9 B121.81 B
Operating Income36.35 B56.3 B125.18 B105.56 B90.36 B71.56 B
Net Cash Flow from Operations(26.08 B)159.43 B28.48 B180.75 B44.65 B45.4 B
Investments276.62 B425.06 B465.23 B930.54 B768.69 B829.38 B

About Banco Macro Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Banco Macro SA's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Banco Macro using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Banco Macro SA 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 Macro S.A. provides various banking products and services to retail and corporate customers in Argentina. The company was incorporated in 1966 and is headquartered in Buenos Aires, Argentina. Banco Macro operates under Banks - Regional classification in the United States and is traded on New York Stock Exchange. It employs 7982 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Banco Macro 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 Banco Macro

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

Moving together with Banco Macro

0.91AEGAegon NV ADR Downward RallyPairCorr
0.82ALLYAlly Financial TrendingPairCorr
The ability to find closely correlated positions to Banco Macro 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 Macro 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 Macro - 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 Macro SA to buy it.
The correlation of Banco Macro 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 Macro moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Banco Macro SA 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 Macro 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 Macro Piotroski F Score and Banco Macro Altman Z Score analysis. Note that the Banco Macro SA information on this page should be used as a complementary analysis to other Banco Macro'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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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When running Banco Macro SA price analysis, check to measure Banco Macro'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 Macro is operating at the current time. Most of Banco Macro's value examination focuses on studying past and present price action to predict the probability of Banco Macro's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Banco Macro's price. Additionally, you may evaluate how the addition of Banco Macro to your portfolios can decrease your overall portfolio volatility.
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Is Banco Macro'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 Macro. 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 Macro 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
0.77
Market Capitalization
853.6 M
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.0312
Return On Equity
0.13
The market value of Banco Macro SA 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 Macro's value that differs from its market value or its book value, called intrinsic value, which is Banco Macro'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 Macro's market value can be influenced by many factors that don't directly affect Banco Macro'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 Macro's value and its price as these two are different measures arrived at by different means. Investors typically determine Banco Macro value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Banco Macro'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.