Cadiz Beneish M Score

CDZI
 Stock
  

USD 2.06  0.01  0.48%   

This module uses fundamental data of Cadiz to approximate the value of its Beneish M Score. Cadiz 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 Cadiz Piotroski F Score and Cadiz Altman Z Score analysis.
  
Cadiz Debt Non Current is most likely to increase significantly in the upcoming years. The last year's value of Debt Non Current was reported at 68.59 Million. The current Long Term Debt to Equity is estimated to increase to 1.90, while Issuance Repayment of Debt Securities is projected to decrease to (28.2 M). Cadiz Receivables Turnover is most likely to slightly grow in the upcoming years. The last year's value of Receivables Turnover was reported at 3.47. The current Cash and Equivalents Turnover is estimated to increase to 0.07, while Accounts Payable Turnover is projected to decrease to 1.22.
At this time, it appears that Cadiz Inc is a possible manipulator. The earnings manipulation may begin if Cadiz'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 Cadiz 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 Cadiz'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.
-1.64
Beneish M Score - Possible Manipulator
Elasticity of Receivables1.02Focus
Asset Quality3.14Focus
Expense Coverage0.88Focus
Gross Margin Strengs1.08Focus
Accruals Factor0.88Focus
Depreciation Resistance0.93Focus
Net Sales Growth1.05Focus
Financial Leverage Condition1.16Focus

Cadiz 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 Cadiz'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
Selling General and Administrative Expense16.4 M17.7 M
Significantly Down
Increasing
Slightly volatile
Revenues595 K564 K
Notably Up
Decreasing
Stable
Trade and Non Trade Receivables291.3 K270 K
Significantly Up
Decreasing
Very volatile
Property Plant and Equipment Net71.6 M82.2 M
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current97.5 M69.4 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities2.7 M2.5 M
Notably Up
Increasing
Slightly volatile
Total Liabilities81.5 M71.9 M
Moderately Up
Increasing
Slightly volatile
Investments Non Current9.3 M8.6 M
Significantly Up
Increasing
Slightly volatile
Investments9.3 M8.6 M
Significantly Up
Increasing
Slightly volatile
Gross Margin(12.25)(11.35)
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion409.5 K438 K
Notably Down
Increasing
Stable
Debt Non Current94.9 M68.6 M
Significantly Up
Increasing
Slightly volatile
Debt Current171.6 K131 K
Significantly Up
Increasing
Stable
Total Debt95.1 M68.7 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current85.7 M99.3 M
Fairly Down
Increasing
Slightly volatile
Current Assets11.6 M13.2 M
Fairly Down
Increasing
Slightly volatile
Total Assets121.4 M112.5 M
Significantly Up
Increasing
Slightly volatile

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

About Cadiz 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

409,526

Cadiz Depreciation Amortization and Accretion is most likely to increase significantly in the upcoming years. The last year's value of Depreciation Amortization and Accretion was reported at 438,000

Cadiz 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 Cadiz. 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)
Revenues437 K440 K441 K541 K564 K595 K
Total Assets66.5 M69.31 M76.72 M74.36 M112.49 M121.37 M
Current Assets13.48 M13 M16.12 M8.04 M13.21 M11.62 M
Assets Non Current53.03 M56.3 M60.61 M66.33 M99.28 M85.71 M
Total Liabilities145.2 M155.55 M158.84 M99.66 M71.88 M81.5 M
Current Liabilities6.49 M4.14 M4.8 M3.13 M2.51 M2.69 M
Total Debt125.18 M150.72 M153.3 M95.84 M68.72 M95.12 M
Debt Current1.41 M59 K31 K66 K131 K171.63 K
Debt Non Current123.77 M150.66 M153.27 M95.78 M68.59 M94.95 M
Operating Income(12.64 M)(11.22 M)(11.99 M)(11.75 M)(17.51 M)(18.89 M)

About Cadiz Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Cadiz Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Cadiz using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Cadiz Inc 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.
Cadiz Inc., together with its subsidiaries, operates as a natural resources development company in the United States. Cadiz Inc. was founded in 1983 and is headquartered in Los Angeles, California. Cadiz operates under UtilitiesRegulated Water classification in the United States and is traded on NASDAQ Exchange. It employs 10 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 Cadiz 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, Cadiz's short interest history, or implied volatility extrapolated from Cadiz options trading.

Pair Trading with Cadiz

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

Moving together with Cadiz

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

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When running Cadiz Inc price analysis, check to measure Cadiz'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 Cadiz is operating at the current time. Most of Cadiz's value examination focuses on studying past and present price action to predict the probability of Cadiz's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Cadiz's price. Additionally, you may evaluate how the addition of Cadiz to your portfolios can decrease your overall portfolio volatility.
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Is Cadiz'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 Cadiz. If investors know Cadiz 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 Cadiz listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Cadiz Inc is measured differently than its book value, which is the value of Cadiz that is recorded on the company's balance sheet. Investors also form their own opinion of Cadiz's value that differs from its market value or its book value, called intrinsic value, which is Cadiz'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 Cadiz's market value can be influenced by many factors that don't directly affect Cadiz'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 Cadiz's value and its price as these two are different measures arrived at by different means. Investors typically determine Cadiz value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cadiz'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.