Merchants Beneish M Score

MBIN
 Stock
  

USD 22.76  0.61  2.61%   

This module uses fundamental data of Merchants Bancorp to approximate the value of its Beneish M Score. Merchants Bancorp 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. Additionally, see Merchants Bancorp Piotroski F Score and Merchants Bancorp Altman Z Score analysis.
  
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Merchants Bancorp Long Term Debt is quite stable at the moment as compared to the past year. The company's current value of Long Term Debt is estimated at 172.63 Million. Total Debt is expected to rise to about 1.1 B this year, although the value of Issuance Repayment of Debt Securities will most likely fall to (322.6 M). Merchants Bancorp Dividend Yield is quite stable at the moment as compared to the past year. The company's current value of Dividend Yield is estimated at 0.009895. EBITDA Margin is expected to rise to 0.77 this year, although the value of Cash and Equivalents Turnover will most likely fall to 0.67.
At this time, it appears that Merchants Bancorp is an unlikely manipulator. The earnings manipulation may begin if Merchants Bancorp'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 Merchants Bancorp 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 Merchants Bancorp'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.
-3.58
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense Coverage1.0Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.0Focus
Depreciation Resistance0.8Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.03Focus

Merchants Bancorp 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 Merchants Bancorp'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
Revenues464.3 M430.3 M
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense100.4 M93.1 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations(53.1 M)(49.2 M)
Significantly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion2.4 M2.2 M
Significantly Up
Increasing
Slightly volatile
Total Assets9.2 B11.3 B
Significantly Down
Increasing
Slightly volatile
Investments8.2 B10 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net26.3 M31.2 M
Fairly Down
Increasing
Slightly volatile
Total Liabilities8.3 B10.1 B
Significantly Down
Increasing
Slightly volatile
Total Debt1.1 BB
Significantly Up
Increasing
Slightly volatile
Operating Income329 M304.9 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Merchants Bancorp 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

2.36 Million

Merchants Bancorp Depreciation Amortization and Accretion is quite stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 2.36 Million

Merchants Bancorp 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 Merchants Bancorp. 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)
Revenues111.81 M134.93 M165.45 M339.78 M430.31 M464.29 M
Total Assets3.39 B3.88 B6.37 B9.65 B11.28 B9.21 B
Property Plant and Equipment Net5.35 M15.14 M29.27 M29.76 M31.21 M26.32 M
Depreciation Amortization and Accretion296 K461 K852 K1.9 M2.19 M2.36 M
Selling General and Administrative Expense23.07 M35.03 M42.7 M64.93 M93.09 M100.44 M
Total Liabilities3.03 B3.46 B5.72 B8.83 B10.12 B8.29 B
Total Debt56.61 M195.45 M181.44 M1.35 B1.03 B1.12 B
Operating Income77.16 M84.03 M102.13 M243.36 M304.93 M329 M
Net Cash Flow from Operations(175.89 M)204.34 M(1.26 B)(874.89 M)(49.22 M)(53.1 M)
Investments2.99 B3.47 B5.77 B9.26 B9.97 B8.18 B

About Merchants Bancorp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Merchants Bancorp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Merchants Bancorp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Merchants Bancorp 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.
Merchants Bancorp operates as the diversified bank holding company in the United States. Merchants Bancorp was founded in 1990 and is headquartered in Carmel, Indiana. Merchants Bancorp operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 481 people.

Merchants Bancorp Investors Sentiment

The influence of Merchants Bancorp'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 Merchants. 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.
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 Merchants Bancorp 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, Merchants Bancorp's short interest history, or implied volatility extrapolated from Merchants Bancorp options trading.

Current Sentiment - MBIN

Merchants Bancorp Investor Sentiment

Macroaxis portfolio users are evenly split in their trading attitude regarding investing in Merchants Bancorp. What is your trading attitude regarding investing in Merchants Bancorp? Are you bullish or bearish?
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Bearish
50% Bullish
50% Bearish

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Additionally, see Merchants Bancorp Piotroski F Score and Merchants Bancorp Altman Z Score analysis. Note that the Merchants Bancorp information on this page should be used as a complementary analysis to other Merchants Bancorp'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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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Is Merchants Bancorp'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 Merchants Bancorp. If investors know Merchants 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 Merchants Bancorp 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
-0.24
Market Capitalization
984.8 M
Quarterly Revenue Growth YOY
-0.14
Return On Assets
0.0222
Return On Equity
0.2
The market value of Merchants Bancorp is measured differently than its book value, which is the value of Merchants that is recorded on the company's balance sheet. Investors also form their own opinion of Merchants Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Merchants Bancorp'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 Merchants Bancorp's market value can be influenced by many factors that don't directly affect Merchants Bancorp'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 Merchants Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine Merchants Bancorp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merchants Bancorp'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.