Clearsign Beneish M Score

CLIR
 Stock
  

USD 1.26  0.05  4.13%   

This module uses fundamental data of Clearsign Combustion to approximate the value of its Beneish M Score. Clearsign Combustion 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 Clearsign Combustion Piotroski F Score and Clearsign Combustion Altman Z Score analysis.
  
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Clearsign Combustion Debt Non Current is relatively stable at the moment as compared to the past year. Clearsign Combustion reported last year Debt Non Current of 350,000. As of 07/02/2022, Issuance Repayment of Debt Securities is likely to grow to about 311.4 K, while Total Debt is likely to drop slightly above 542.7 K. Clearsign Combustion Price to Book Value is relatively stable at the moment as compared to the past year. Clearsign Combustion reported last year Price to Book Value of 5.26. As of 07/02/2022, Price to Sales Ratio is likely to grow to 65.58, while Return on Investment is likely to drop (474.16) .
At this time, it appears that Clearsign Combustion is an unlikely manipulator. The earnings manipulation may begin if Clearsign Combustion'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 Clearsign Combustion 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 Clearsign Combustion'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.
-2.84
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.62Focus
Asset Quality0.86Focus
Expense Coverage1.16Focus
Gross Margin Strengs1.03Focus
Accruals Factor1.16Focus
Depreciation Resistance1.0Focus
Net Sales Growth0.92Focus
Financial Leverage Condition1.12Focus

Clearsign Combustion 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 Clearsign Combustion'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
Revenues640.5 K698 K
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense5.4 MM
Notably Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion256.1 K260 K
Fairly Down
Increasing
Slightly volatile
Total Assets9.8 M9.4 M
Sufficiently Up
Increasing
Slightly volatile
Investments6.2 M6.2 M
Slightly Down
Decreasing
Slightly volatile
Investments Current6.2 M6.2 M
Slightly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net520.8 K530 K
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables44.3 K29.7 K
Way Up
Decreasing
Slightly volatile
Total Liabilities1.4 M1.1 M
Significantly Up
Increasing
Slightly volatile
Current AssetsMM
Slightly Down
Increasing
Slightly volatile
Assets Non Current1.8 M1.3 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities1.1 M731 K
Way Up
Increasing
Slightly volatile
Liabilities Non Current322.9 K350 K
Significantly Down
Increasing
Slightly volatile
Total Debt542.7 K555 K
Fairly Down
Increasing
Slightly volatile
Debt Current200.8 K205 K
Fairly Down
Increasing
Slightly volatile
Debt Non Current368.2 K350 K
Sufficiently Up
Increasing
Very volatile
Gross Margin(0.69)(0.67)
Fairly Down
Decreasing
Slightly volatile

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

About Clearsign Combustion 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

256,053

Share
Clearsign Combustion Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. Clearsign Combustion reported last year Depreciation Amortization and Accretion of 260,000

Clearsign Combustion 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 Clearsign Combustion. 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)
Revenues621 K540 K530 K607 K698.05 K640.54 K
Total Assets4.16 M18.64 M10.94 M11.12 M9.36 M9.81 M
Current Assets1.8 M16.41 M8.98 M9.38 M8.02 M8.01 M
Assets Non Current2.36 M2.23 M1.96 M1.74 M1.34 M1.8 M
Total Liabilities1.73 M1.73 M1.72 M1.58 M1.08 M1.37 M
Current Liabilities1.53 M1.64 M1.3 M1.08 M731 K1.06 M
Total Debt354 K307 K595 K669 K555 K542.71 K
Debt Current159 K216 K177 K169 K205 K200.78 K
Debt Non Current195 K91 K418 K500 K350 K368.22 K
Operating Income(9.71 M)(9.57 M)(8.58 M)(6.93 M)(8.14 M)(8.79 M)
Gross Margin0.220.30.19(0.74)(0.67)(0.69)

About Clearsign Combustion Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Clearsign Combustion's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Clearsign Combustion using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Clearsign Combustion 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.
ClearSign Technologies Corporation designs and develops products and technologies to enhance operational performance, energy efficiency, emission reduction, safety, and overall cost-effectiveness of industrial and commercial systems in the United States and the Peoples Republic of China. ClearSign Technologies Corporation was incorporated in 2008 and is headquartered in Tulsa, Oklahoma. Clearsign Combustion operates under Pollution Treatment Controls classification in the United States and is traded on NASDAQ Exchange. It employs 12 people.

Clearsign Combustion Investors Sentiment

The influence of Clearsign Combustion's 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 Clearsign. 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.

Clearsign Combustion Implied Volatility

    
  0.0  
Clearsign Combustion's implied volatility exposes the market's sentiment of Clearsign Combustion stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Clearsign Combustion's 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 Clearsign Combustion stock will not fluctuate a lot when Clearsign Combustion's 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 Clearsign Combustion 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, Clearsign Combustion's short interest history, or implied volatility extrapolated from Clearsign Combustion options trading.

Current Sentiment - CLIR

Clearsign Combustion Investor Sentiment

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

Pair Trading with Clearsign Combustion

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

Clearsign Combustion Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Clearsign Combustion could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Clearsign Combustion 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 Clearsign Combustion - 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 Clearsign Combustion to buy it.
The correlation of Clearsign Combustion 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 Clearsign Combustion moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Clearsign Combustion 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 Clearsign Combustion 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 Clearsign Combustion Piotroski F Score and Clearsign Combustion Altman Z Score analysis. Note that the Clearsign Combustion information on this page should be used as a complementary analysis to other Clearsign Combustion'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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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When running Clearsign Combustion price analysis, check to measure Clearsign Combustion'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 Clearsign Combustion is operating at the current time. Most of Clearsign Combustion's value examination focuses on studying past and present price action to predict the probability of Clearsign Combustion's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Clearsign Combustion's price. Additionally, you may evaluate how the addition of Clearsign Combustion to your portfolios can decrease your overall portfolio volatility.
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Is Clearsign Combustion'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 Clearsign Combustion. If investors know Clearsign 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 Clearsign Combustion listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
44 M
Return On Assets
-0.43
Return On Equity
-0.76
The market value of Clearsign Combustion is measured differently than its book value, which is the value of Clearsign that is recorded on the company's balance sheet. Investors also form their own opinion of Clearsign Combustion's value that differs from its market value or its book value, called intrinsic value, which is Clearsign Combustion'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 Clearsign Combustion's market value can be influenced by many factors that don't directly affect Clearsign Combustion'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 Clearsign Combustion's value and its price as these two are different measures arrived at by different means. Investors typically determine Clearsign Combustion value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Clearsign Combustion'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.