Invesco Beneish M Score

IVR
 Stock
  

USD 13.37  0.12  0.91%   

This module uses fundamental data of Invesco Mortgage to approximate the value of its Beneish M Score. Invesco Mortgage 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. Please see Invesco Mortgage Piotroski F Score and Invesco Mortgage Altman Z Score analysis.
  
Invesco Mortgage Total Debt is relatively stable at the moment as compared to the past year. Invesco Mortgage reported last year Total Debt of 6.99 Billion. As of 12/05/2022, Debt to Equity Ratio is likely to grow to 0.55, while Long Term Debt is likely to drop slightly above 1.5 B. Invesco Mortgage Dividend Yield is relatively stable at the moment as compared to the past year. Invesco Mortgage reported last year Dividend Yield of 0.13. As of 12/05/2022, Dividends per Basic Common Share is likely to grow to 3.59, while Long Term Debt to Equity is likely to drop 0.63.
At this time, it appears that Invesco Mortgage Capital is an unlikely manipulator. The earnings manipulation may begin if Invesco Mortgage'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 Invesco Mortgage 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 Invesco Mortgage'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.
-3.16
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset QualityN/AFocus
Expense Coverage1.1Focus
Gross Margin Strengs1.03Focus
Accruals Factor1.1Focus
Depreciation ResistanceN/AFocus
Net Sales Growth1.03Focus
Financial Leverage Condition1.17Focus

Invesco Mortgage 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 Invesco Mortgage'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 Expense33.1 M29.2 M
Moderately Up
Increasing
Very volatile
Revenues(76.7 M)(74.7 M)
Fairly Down
Decreasing
Slightly volatile
Trade and Non Trade Receivables25.4 M24.8 M
Fairly Up
Decreasing
Slightly volatile
Operating Income(87.3 M)(85 M)
Fairly Down
Decreasing
Slightly volatile
Net Cash Flow from Operations156.3 M152.3 M
Fairly Up
Decreasing
Slightly volatile
Current Liabilities11.9 B12.5 B
Sufficiently Down
Increasing
Stable
Total Liabilities7.2 BB
Fairly Up
Decreasing
Stable
Investments277.1 K270 K
Fairly Up
Decreasing
Slightly volatile
Gross Margin(9.86)(9.61)
Fairly Down
Decreasing
Slightly volatile
Total Debt9.6 BB
Significantly Up
Decreasing
Slightly volatile
Current Assets409.7 M333.5 M
Fairly Up
Decreasing
Stable
Total Assets8.7 B8.4 B
Fairly Up
Decreasing
Stable

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

About Invesco Mortgage 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

33.77 Million

Invesco Mortgage Operating Expenses is relatively stable at the moment as compared to the past year. Invesco Mortgage reported last year Operating Expenses of 29.23 Million

Invesco Mortgage 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 Invesco Mortgage. 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)
Trade and Non Trade Receivables73.22 M80.1 M100.54 M16.92 M24.75 M25.4 M
Revenues595.72 M312.72 M880.37 M(1.55 B)(74.69 M)(76.66 M)
Total Assets18.66 B17.81 B22.35 B8.63 B8.44 B8.67 B
Current Assets443.96 M413.32 M236.47 M289.96 M333.46 M409.69 M
Selling General and Administrative Expense44.75 M47.79 M46.17 M40.23 M29.23 M33.15 M
Total Liabilities16.03 B15.53 B19.41 B7.27 B7.04 B7.23 B
Current Liabilities12.22 B11.25 B14.17 B13.85 B12.47 B11.9 B
Total Debt15.87 B15.25 B19.18 B7.23 B6.99 B9.63 B
Operating Income92.58 M255.31 M354.38 M(73.94 M)(85.03 M)(87.27 M)
Net Cash Flow from Operations317.95 M304.26 M343.36 M170.46 M152.29 M156.3 M
Investments18.39 B17.41 B21.96 B10 M270 K277.11 K

About Invesco Mortgage Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Invesco Mortgage Capital's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Invesco Mortgage using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Invesco Mortgage Capital 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.
Invesco Mortgage Capital Inc. operates as a real estate investment trust that primarily focuses on investing in, financing, and managing mortgage-backed securities and other mortgage-related assets. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia. Invesco Mortgage operates under REITMortgage classification in the United States and is traded on New York Stock Exchange.

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Please see Invesco Mortgage Piotroski F Score and Invesco Mortgage Altman Z Score analysis. You can also try Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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When running Invesco Mortgage Capital price analysis, check to measure Invesco Mortgage'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 Invesco Mortgage is operating at the current time. Most of Invesco Mortgage's value examination focuses on studying past and present price action to predict the probability of Invesco Mortgage's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Invesco Mortgage's price. Additionally, you may evaluate how the addition of Invesco Mortgage to your portfolios can decrease your overall portfolio volatility.
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Is Invesco Mortgage'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 Invesco Mortgage. If investors know Invesco 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 Invesco Mortgage 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
(0.69) 
Market Capitalization
474.6 M
Quarterly Revenue Growth YOY
(0.34) 
Return On Assets
(0.07) 
Return On Equity
(0.45) 
The market value of Invesco Mortgage Capital is measured differently than its book value, which is the value of Invesco that is recorded on the company's balance sheet. Investors also form their own opinion of Invesco Mortgage's value that differs from its market value or its book value, called intrinsic value, which is Invesco Mortgage'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 Invesco Mortgage's market value can be influenced by many factors that don't directly affect Invesco Mortgage'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 Invesco Mortgage's value and its price as these two are different measures arrived at by different means. Investors typically determine Invesco Mortgage value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Invesco Mortgage'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.