Shore Beneish M Score

SHBI -  USA Stock  

USD 19.82  0.17  0.85%

This module uses fundamental data of Shore Bancshares to approximate the value of its Beneish M Score. Shore Bancshares 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, take a look at Shore Bancshares Piotroski F Score and Shore Bancshares Altman Z Score analysis.

Shore Beneish M Score 

 
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The current Long Term Debt is estimated to increase to about 23.7 M. The current Total Debt is estimated to increase to about 7.9 M. Shore Bancshares Accrued Expenses Turnover is most likely to increase significantly in the upcoming years. The last year's value of Accrued Expenses Turnover was reported at 129.40. The current Cash and Equivalents Turnover is estimated to increase to 0.83, while Total Assets Per Share are projected to decrease to 128.21.
At this time, it appears that Shore Bancshares is an unlikely manipulator. The earnings manipulation may begin if Shore Bancshares' 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 Shore Bancshares 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 Shore Bancshares' 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.
-3.04
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
0.92
Asset Quality
N/A
Expense Coverage
1.0
Gross Margin Strengs
0.99
Accruals Factor
1.0
Depreciation Resistance
1.03
Net Sales Growth
0.95
Financial Leverage Condition
1.0

Shore Bancshares 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 Shore Bancshares' 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
Revenues60.1 M63.4 M
Notably Down
Decreasing
Very volatile
Selling General and Administrative Expense31.5 M33.4 M
Notably Down
Increasing
Stable
Net Cash Flow from Operations21.8 M21.2 M
Fairly Up
Decreasing
Stable
Depreciation Amortization and AccretionM2.2 M
Moderately Down
Increasing
Very volatile
Total Assets1.5 B1.7 B
Fairly Down
Increasing
Slightly volatile
Investments845.8 M902.8 M
Notably Down
Increasing
Slightly volatile
Property Plant and Equipment Net14.2 M15.2 M
Notably Down
Increasing
Slightly volatile
Trade and Non Trade Receivables847.9 K974.7 K
Fairly Down
Decreasing
Stable
Total Liabilities1.3 B1.6 B
Fairly Down
Increasing
Slightly volatile
Total Debt7.9 M7.7 M
Fairly Up
Decreasing
Slightly volatile
Operating Income11.8 M13.2 M
Fairly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Shore Bancshares 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

1.98 MillionShare
Shore Bancshares 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 2.19 Million

About Shore Bancshares Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Shore Bancshares's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Shore Bancshares using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Shore Bancshares 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.
Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank that provides various commercial and consumer banking products and services to individuals, businesses, and other organizations. The company was founded in 1876 and is headquartered in Easton, Maryland. Shore Bancshares operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 287 people.

Shore Bancshares Investors Sentiment

The influence of Shore Bancshares' 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 Shore. 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 Shore Bancshares 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, Shore Bancshares' short interest history, or implied volatility extrapolated from Shore Bancshares options trading.

Current Sentiment - SHBI

Shore Bancshares Investor Sentiment

Most of Macroaxis users are at this time bullish on Shore Bancshares. What is your outlook on investing in Shore Bancshares? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Additionally, take a look at Shore Bancshares Piotroski F Score and Shore Bancshares Altman Z Score analysis. Note that the Shore Bancshares information on this page should be used as a complementary analysis to other Shore Bancshares' 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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Is Shore Bancshares' 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 Shore Bancshares. If investors know Shore 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 Shore Bancshares listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Shore Bancshares is measured differently than its book value, which is the value of Shore that is recorded on the company's balance sheet. Investors also form their own opinion of Shore Bancshares' value that differs from its market value or its book value, called intrinsic value, which is Shore Bancshares' 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 Shore Bancshares' market value can be influenced by many factors that don't directly affect Shore Bancshares' 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 Shore Bancshares' value and its price as these two are different measures arrived at by different means. Investors typically determine Shore Bancshares value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shore Bancshares' 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.