Chembio Beneish M Score

CEMI -  USA Stock  

USD 0.65  0.03  4.41%

This module uses fundamental data of Chembio Diagnostics to approximate the value of its Beneish M Score. Chembio Diagnostics 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 Chembio Diagnostics Piotroski F Score and Chembio Diagnostics Altman Z Score analysis.
  
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Chembio Diagnostics 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 23.7 Million. The current Long Term Debt to Equity is estimated to increase to 0.56, while Issuance Repayment of Debt Securities is projected to decrease to (63.5 K). Chembio Diagnostics Calculated Tax Rate is most likely to increase significantly in the upcoming years. The last year's value of Calculated Tax Rate was reported at 43.06. The current PPandE Turnover is estimated to increase to 5.55, while Receivables Turnover is projected to decrease to 6.10.
At this time, it appears that Chembio Diagnostics is an unlikely manipulator. The earnings manipulation may begin if Chembio Diagnostics' 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 Chembio Diagnostics 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 Chembio Diagnostics' 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.
-2.89
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.23Focus
Asset QualityN/AFocus
Expense Coverage1.23Focus
Gross Margin Strengs1.11Focus
Accruals Factor1.23Focus
Depreciation Resistance1.0Focus
Net Sales Growth0.88Focus
Financial Leverage Condition1.36Focus

Chembio Diagnostics 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 Chembio Diagnostics' 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
Revenues41.9 M47.8 M
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense26.8 M24.8 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations(31.7 M)(30.9 M)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion3.2 M2.9 M
Significantly Up
Increasing
Slightly volatile
Total Assets58.3 M73.3 M
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net15.8 M14.6 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables12.3 M11.4 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities42.1 M39 M
Significantly Up
Increasing
Slightly volatile
Current Assets59.6 M55.2 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current15.9 M18 M
Fairly Down
Increasing
Slightly volatile
Current Liabilities16.5 M15.3 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current18.7 M23.7 M
Significantly Down
Increasing
Slightly volatile
Total Debt27.9 M25.9 M
Significantly Up
Increasing
Slightly volatile
Debt Current2.3 M2.2 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current25.6 M23.7 M
Significantly Up
Increasing
Slightly volatile
Operating Income(31.9 M)(31.1 M)
Fairly Down
Decreasing
Slightly volatile
Gross Margin0.310.279
Significantly Up
Decreasing
Slightly volatile

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

About Chembio Diagnostics 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

3.16 Million

Share
Chembio Diagnostics 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 2.93 Million

Chembio Diagnostics 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 Chembio Diagnostics. 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)
Revenues24.02 M34.58 M34.46 M32.47 M47.82 M41.89 M
Total Assets16.62 M40.91 M55.73 M64.89 M73.25 M58.3 M
Current Assets10.85 M28.45 M32.22 M39.74 M55.23 M59.59 M
Assets Non Current5.76 M12.46 M23.51 M25.15 M18.02 M15.89 M
Total Liabilities3.54 M7.58 M31.69 M37.12 M38.99 M42.07 M
Current Liabilities3.1 M6.52 M6.44 M12.35 M15.28 M16.49 M
Operating Income(6.48 M)(7.98 M)(13.33 M)(23.14 M)(31.05 M)(31.87 M)
Gross Margin0.470.460.350.270.280.31

About Chembio Diagnostics Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Chembio Diagnostics's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Chembio Diagnostics using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Chembio Diagnostics 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.
Chembio Diagnostics, Inc., together with its subsidiaries, develops, manufactures, and commercializes point-of-care diagnostic tests that are used to detect or diagnose diseases. Chembio Diagnostics, Inc. was founded in 1985 and is headquartered in Hauppauge, New York. Chembio Diagnostics operates under Diagnostics Research classification in the United States and is traded on NASDAQ Exchange. It employs 337 people.

Chembio Diagnostics Investors Sentiment

The influence of Chembio Diagnostics' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Chembio. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Chembio Diagnostics Implied Volatility

    
  0.0  
Chembio Diagnostics' implied volatility exposes the market's sentiment of Chembio Diagnostics stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Chembio Diagnostics' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Chembio Diagnostics stock will not fluctuate a lot when Chembio Diagnostics' options are near their expiration.
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 Chembio Diagnostics 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, Chembio Diagnostics' short interest history, or implied volatility extrapolated from Chembio Diagnostics options trading.

Current Sentiment - CEMI

Chembio Diagnostics Investor Sentiment

Most of Macroaxis users are currently bullish on Chembio Diagnostics. What is your opinion about investing in Chembio Diagnostics? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

Pair Trading with Chembio Diagnostics

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

Chembio Diagnostics Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

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

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When running Chembio Diagnostics price analysis, check to measure Chembio Diagnostics' 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 Chembio Diagnostics is operating at the current time. Most of Chembio Diagnostics' value examination focuses on studying past and present price action to predict the probability of Chembio Diagnostics' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Chembio Diagnostics' price. Additionally, you may evaluate how the addition of Chembio Diagnostics to your portfolios can decrease your overall portfolio volatility.
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Is Chembio Diagnostics' 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 Chembio Diagnostics. If investors know Chembio 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 Chembio Diagnostics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
20.4 M
Quarterly Revenue Growth YOY
1.16
Return On Assets
-0.26
Return On Equity
-1.53
The market value of Chembio Diagnostics is measured differently than its book value, which is the value of Chembio that is recorded on the company's balance sheet. Investors also form their own opinion of Chembio Diagnostics' value that differs from its market value or its book value, called intrinsic value, which is Chembio Diagnostics' 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 Chembio Diagnostics' market value can be influenced by many factors that don't directly affect Chembio Diagnostics' 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 Chembio Diagnostics' value and its price as these two are different measures arrived at by different means. Investors typically determine Chembio Diagnostics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chembio Diagnostics' 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.