Altisource Asset Management Stock Beneish M Score

AAMC Stock  USD 2.17  0.14  6.06%   
This module uses fundamental data of Altisource Asset to approximate the value of its Beneish M Score. Altisource Asset 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. Check out Altisource Asset Piotroski F Score and Altisource Asset Altman Z Score analysis.
  
The current year's Cash Flow To Debt Ratio is expected to grow to 4.78, whereas Net Debt is projected to grow to (7.4 M). At present, Altisource Asset's Book Value Per Share is projected to drop based on the last few years of reporting. The current year's Free Cash Flow Yield is expected to grow to 0.47, whereas Price To Sales Ratio is projected to grow to (0.98).
At this time, Altisource Asset's M Score is unavailable. The earnings manipulation may begin if Altisource Asset'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 Altisource Asset 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 Altisource Asset'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.
-8.05
Beneish M Score - Unavailable
Elasticity of Receivables

1.11

Focus
Asset Quality

1.15

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.74

Focus
Net Sales Growth

0.95

Focus
Financial Leverage Condition

1.0

Focus

Altisource Asset 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 Altisource Asset'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
Total Assets24.3 M25.5 M
Notably Down
Slightly volatile
Total Current Assets8.3 M8.7 M
Notably Down
Slightly volatile
Non Current Assets Total10.6 M11.2 M
Notably Down
Slightly volatile
Depreciation And Amortization1.3 M680 K
Way Up
Very volatile
Selling General Administrative8.6 MM
Notably Down
Pretty Stable
Total Current Liabilities855 K900 K
Notably Down
Pretty Stable
Non Current Liabilities TotalM6.3 M
Notably Down
Slightly volatile

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

About Altisource Asset 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.

Total Assets

24.26 Million

At present, Altisource Asset's Total Assets are projected to decrease significantly based on the last few years of reporting.

Altisource Asset 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 Altisource Asset. 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.
201920202021202220232024 (projected)
Net Receivables5.0M3.4M0.083.1M95.6M100.4M
Total Revenue15.8M244K3.1M563K(11.7M)(11.1M)
Total Assets53.2M99.8M81.5M117.6M25.5M24.3M
Total Current Assets47.2M96.6M80.2M10.7M8.7M8.3M
Net Debt(15.5M)(40.9M)(77.5M)42.2M(7.8M)(7.4M)
Short Term Debt265K75K139K51.7M300K285K
Operating Income(16.4M)(27.5M)(17.0M)(9.1M)(24.8M)(23.5M)
Investments67K3.6M58.9M(72.9M)54.7M57.5M
Gross Profit Margin(0.0804)(48.09)(0.84)(9.37)1.111.17

Altisource Asset ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Altisource Asset's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Altisource Asset's managers, analysts, and investors.
Environmental
Governance
Social

About Altisource Asset Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Altisource Asset Management's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Altisource Asset using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Altisource Asset Management 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.

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Additional Information and Resources on Investing in Altisource Stock

When determining whether Altisource Asset Man offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Altisource Asset's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Altisource Asset Management Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Altisource Asset Management Stock:
Check out Altisource Asset Piotroski F Score and Altisource Asset Altman Z Score analysis.
You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Is Real Estate Management & Development space 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 Altisource Asset. If investors know Altisource 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 Altisource Asset 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
(0.98)
Earnings Share
39.85
Revenue Per Share
0.452
Quarterly Revenue Growth
(0.89)
Return On Assets
(0.28)
The market value of Altisource Asset Man is measured differently than its book value, which is the value of Altisource that is recorded on the company's balance sheet. Investors also form their own opinion of Altisource Asset's value that differs from its market value or its book value, called intrinsic value, which is Altisource Asset'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 Altisource Asset's market value can be influenced by many factors that don't directly affect Altisource Asset'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 Altisource Asset's value and its price as these two are different measures arrived at by different means. Investors typically determine if Altisource Asset is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Altisource Asset'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.