Championx Beneish M Score

CHX
 Stock
  

USD 20.72  0.27  1.29%   

This module uses fundamental data of Championx Corp to approximate the value of its Beneish M Score. Championx Corp 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 Championx Corp Piotroski F Score and Championx Corp Altman Z Score analysis.
  
Total Debt is likely to drop to about 802.7 M in 2022. Debt Current is likely to drop to about 52.9 M in 2022. Championx Corp Total Assets Per Share are fairly stable at the moment as compared to the past year. Championx Corp reported Total Assets Per Share of 17.42 in 2021. Quick Ratio is likely to rise to 1.29 in 2022, whereas Long Term Debt to Equity is likely to drop 0.36 in 2022.
At this time, it appears that Championx Corp is an unlikely manipulator. The earnings manipulation may begin if Championx Corp'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 Championx Corp 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 Championx Corp'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.
-3.09
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.06Focus
Asset QualityN/AFocus
Expense Coverage1.07Focus
Gross Margin Strengs1.03Focus
Accruals Factor1.07Focus
Depreciation Resistance0.95Focus
Net Sales Growth0.8Focus
Financial Leverage Condition0.96Focus

Championx Corp 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 Championx Corp'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
Revenues2.5 B3.1 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense489.8 M570.4 M
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations286.5 M328.2 M
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion211 M237.3 M
Fairly Down
Increasing
Slightly volatile
Total Assets3.3 B3.5 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net739.9 M892.3 M
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables496.4 M584.4 M
Fairly Down
Increasing
Slightly volatile
Total Liabilities1.5 B1.8 B
Fairly Down
Increasing
Slightly volatile
Current Assets1.2 B1.5 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current2.1 B2.1 B
Slightly Down
Increasing
Slightly volatile
Current Liabilities865.7 M802.3 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current899.9 M978.1 M
Significantly Down
Increasing
Slightly volatile
Total Debt802.7 M834.4 M
Sufficiently Down
Increasing
Slightly volatile
Debt Current52.9 M63.2 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current753.7 M771.2 M
Fairly Down
Increasing
Slightly volatile
Operating Income220.8 M204.6 M
Significantly Up
Decreasing
Stable
Gross Margin0.250.242
Sufficiently Up
Decreasing
Slightly volatile

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

About Championx Corp 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

525.2 Million

Championx Corp Operating Expenses is fairly stable at the moment as compared to the past year. Championx Corp reported Operating Expenses of 538.67 Million in 2021

Championx Corp 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 Championx Corp. 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)
Revenues1.01 B1.22 B1.13 B1.9 B3.07 B2.46 B
Total Assets1.91 B1.97 B1.92 B3.48 B3.53 B3.28 B
Current Assets441.48 M531.22 M493.44 M1.27 B1.46 B1.21 B
Assets Non Current1.47 B1.44 B1.43 B2.21 B2.07 B2.07 B
Total Liabilities266.23 M997.13 M886.61 M1.86 B1.78 B1.52 B
Current Liabilities150.49 M213.75 M199.68 M622.56 M802.33 M865.67 M
Operating Income98.66 M152.06 M98.49 M(711.02 M)204.61 M220.76 M
Gross Margin0.320.340.330.220.240.25

About Championx Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Championx Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Championx Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Championx Corp 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.
ChampionX Corporation provides chemistry solutions, and engineered equipment and technologies to oil and gas companies worldwide. ChampionX Corporation is headquartered in The Woodlands, Texas. Championx Corp operates under Oil Gas Equipment Services classification in the United States and is traded on NASDAQ Exchange. It employs 7000 people.

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Our tools can tell you how much better you can do entering a position in Championx Corp 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 Championx Corp

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

Moving together with Championx Corp

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The ability to find closely correlated positions to Championx Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Championx Corp 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 Championx Corp - 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 Championx Corp to buy it.
The correlation of Championx Corp 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 Championx Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Championx Corp 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 Championx Corp 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 Championx Corp Piotroski F Score and Championx Corp Altman Z Score analysis. Note that the Championx Corp information on this page should be used as a complementary analysis to other Championx Corp'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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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Is Championx Corp'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 Championx Corp. If investors know Championx 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 Championx Corp 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
3.33
Market Capitalization
4.2 B
Quarterly Revenue Growth YOY
0.25
Return On Assets
0.0502
Return On Equity
0.0982
The market value of Championx Corp is measured differently than its book value, which is the value of Championx that is recorded on the company's balance sheet. Investors also form their own opinion of Championx Corp's value that differs from its market value or its book value, called intrinsic value, which is Championx Corp'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 Championx Corp's market value can be influenced by many factors that don't directly affect Championx Corp'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 Championx Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Championx Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Championx Corp'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.