Compania Beneish M Score

CCU
 Stock
  

USD 11.21  0.04  0.36%   

This module uses fundamental data of Compania Cervecerias to approximate the value of its Beneish M Score. Compania Cervecerias 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 Compania Cervecerias Piotroski F Score and Compania Cervecerias Altman Z Score analysis.
  
Total Debt is likely to drop to about 486.6 B in 2022. Debt Current is likely to drop to about 99 B in 2022. Compania Cervecerias Payout Ratio is comparatively stable at the moment as compared to the past year. Compania Cervecerias reported Payout Ratio of 1.56 in 2021. Price to Book Value is likely to gain to 2.10 in 2022, whereas Earnings per Diluted Share are likely to drop 1,027 in 2022.
At this time, it appears that Compania Cervecerias is an unlikely manipulator. The earnings manipulation may begin if Compania Cervecerias' 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 Compania Cervecerias 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 Compania Cervecerias' 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.
-2.7
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.06Focus
Asset Quality1.04Focus
Expense Coverage1.04Focus
Gross Margin Strengs0.98Focus
Accruals Factor1.04Focus
Depreciation ResistanceN/AFocus
Net Sales Growth0.89Focus
Financial Leverage Condition0.91Focus

Compania Cervecerias 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 Compania Cervecerias' 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
Revenues2215.3 B2484.7 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense815.9 B884.1 B
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations354.1 B389.3 B
Significantly Down
Increasing
Slightly volatile
Total Assets2652.4 B2846.8 B
Significantly Down
Increasing
Slightly volatile
Investments199.8 B240.4 B
Significantly Down
Increasing
Slightly volatile
Investments Current44.8 B53.2 B
Fairly Down
Increasing
Slightly volatile
Investments Non Current155 B187.2 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net1178.8 B1250.6 B
Notably Down
Increasing
Slightly volatile
Trade and Non Trade Receivables360.7 B382.2 B
Notably Down
Increasing
Slightly volatile
Total Liabilities1222.7 B1421.2 B
Fairly Down
Increasing
Slightly volatile
Current Assets1017.5 B1091.4 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current1635 B1755.4 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities684.6 B781.1 B
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current538.1 B640.1 B
Fairly Down
Increasing
Slightly volatile
Total Debt486.6 B594.9 B
Significantly Down
Increasing
Slightly volatile
Debt Current99 B107.6 B
Significantly Down
Increasing
Very volatile
Debt Non Current387.5 B487.3 B
Significantly Down
Increasing
Slightly volatile
Operating Income305.2 B320.9 B
Notably Down
Increasing
Slightly volatile
Gross Margin0.470.48
Fairly Down
Decreasing
Slightly volatile

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

About Compania Cervecerias 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

790.82 Billion

Compania Cervecerias Operating Expenses is comparatively stable at the moment as compared to the past year. Compania Cervecerias reported Operating Expenses of 872.27 Billion in 2021

Compania Cervecerias 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 Compania Cervecerias. 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)
Revenues1,698.36 B1,783.28 B1,822.54 B1,857.59 B2,484.71 B2,215.33 B
Total Assets1,976.23 B2,405.86 B2,353.69 B2,525.34 B2,846.75 B2,652.45 B
Current Assets729.11 B941.01 B789.28 B960.01 B1,091.37 B1,017.46 B
Assets Non Current1,247.12 B1,464.86 B1,564.41 B1,565.33 B1,755.38 B1,634.99 B
Total Liabilities749.4 B1,016.75 B910.76 B1,116.52 B1,421.24 B1,222.73 B
Current Liabilities468.75 B645.72 B483.28 B521.52 B781.12 B684.59 B
Total Debt214.59 B290.95 B330.16 B514.14 B594.86 B486.57 B
Debt Current53.59 B62.77 B68.39 B74.06 B107.58 B99.03 B
Debt Non Current161 B228.19 B261.77 B440.08 B487.28 B387.54 B
Operating Income234.89 B468.72 B230.81 B186.59 B320.88 B305.18 B
Investments138.22 B200.67 B188.34 B186.74 B240.37 B199.77 B
Investments Current26.56 B41.61 B32.21 B27.49 B53.18 B44.8 B

About Compania Cervecerias Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Compania Cervecerias Unidas's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Compania Cervecerias using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Compania Cervecerias Unidas 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.
Compaa Cerveceras Unidas S.A. operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. Compaa Cerveceras Unidas S.A. is a subsidiary of Inversiones y Rentas S.A. Compania Cervecerias operates under BeveragesBrewers classification in the United States and is traded on New York Stock Exchange. It employs 9317 people.

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Our tools can tell you how much better you can do entering a position in Compania Cervecerias 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 Compania Cervecerias

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

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The ability to find closely correlated positions to Compania Cervecerias could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Compania Cervecerias 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 Compania Cervecerias - 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 Compania Cervecerias Unidas to buy it.
The correlation of Compania Cervecerias 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 Compania Cervecerias moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Compania Cervecerias 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 Compania Cervecerias 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 Compania Cervecerias Piotroski F Score and Compania Cervecerias Altman Z Score analysis. Note that the Compania Cervecerias information on this page should be used as a complementary analysis to other Compania Cervecerias' 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.

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Is Compania Cervecerias' 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 Compania Cervecerias. If investors know Compania 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 Compania Cervecerias 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
1.85
Market Capitalization
2.1 B
Quarterly Revenue Growth YOY
0.19
Return On Assets
0.0629
Return On Equity
0.13
The market value of Compania Cervecerias is measured differently than its book value, which is the value of Compania that is recorded on the company's balance sheet. Investors also form their own opinion of Compania Cervecerias' value that differs from its market value or its book value, called intrinsic value, which is Compania Cervecerias' 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 Compania Cervecerias' market value can be influenced by many factors that don't directly affect Compania Cervecerias' 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 Compania Cervecerias' value and its price as these two are different measures arrived at by different means. Investors typically determine Compania Cervecerias value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Compania Cervecerias' 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.