Archer Aviation Stock Beneish M Score
| ACHR Stock | USD 3.93 0.28 7.67% |
Archer | Beneish M Score |
At this time, it appears that Archer Aviation is an unlikely manipulator. The earnings manipulation may begin if Archer Aviation'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 Archer Aviation 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 Archer Aviation'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.
-6.32
Beneish M Score - Unlikely Manipulator
Archer Aviation 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 Archer Aviation'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 Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Assets | 426.4 M | 554.3 M |
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| Total Current Assets | 399.9 M | 480.2 M |
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| Non Current Assets Total | 77.8 M | 74.1 M |
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| Property Plant Equipment | 28.3 M | 26.9 M |
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| Depreciation And Amortization | 5.5 M | 5.8 M |
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| Selling General Administrative | 113 M | 168.4 M |
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| Total Current Liabilities | 119.7 M | 114 M |
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| Non Current Liabilities Total | 76.9 M | 73.2 M |
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| Short Term Debt | 2.7 M | 2.8 M |
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| Long Term Debt | 6.2 M | 8.3 M |
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Archer Aviation 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 Archer Aviation's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Archer Aviation in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Archer Aviation's degree of accounting gimmicks and manipulations.
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About Archer Aviation 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 And Amortization |
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About Archer Aviation Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Archer Aviation's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Archer Aviation using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Archer Aviation 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.
Pair Trading with Archer Aviation
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 Archer Aviation 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 Archer Aviation will appreciate offsetting losses from the drop in the long position's value.Moving together with Archer Stock
| 0.69 | AZ | A2Z Smart Technologies | PairCorr |
| 0.72 | BA | Boeing Earnings Call Tomorrow | PairCorr |
Moving against Archer Stock
| 0.75 | GE | GE Aerospace Earnings Call Today | PairCorr |
| 0.71 | GD | General Dynamics Earnings Call Tomorrow | PairCorr |
| 0.65 | CW | Curtiss Wright Financial Report 1st of May 2024 | PairCorr |
| 0.54 | EH | Ehang Holdings | PairCorr |
| 0.52 | VSEC | VSE Corporation Earnings Call This Week | PairCorr |
The ability to find closely correlated positions to Archer Aviation could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Archer Aviation 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 Archer Aviation - 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 Archer Aviation to buy it.
The correlation of Archer Aviation is a statistical measure of how it moves in relation to other instruments. 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 Archer Aviation moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Archer Aviation 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 Archer Aviation 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.Check out Archer Aviation Piotroski F Score and Archer Aviation Altman Z Score analysis. To learn how to invest in Archer Stock, please use our How to Invest in Archer Aviation guide.Note that the Archer Aviation information on this page should be used as a complementary analysis to other Archer Aviation'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 the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Complementary Tools for Archer Stock analysis
When running Archer Aviation's price analysis, check to measure Archer Aviation'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 Archer Aviation is operating at the current time. Most of Archer Aviation's value examination focuses on studying past and present price action to predict the probability of Archer Aviation's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Archer Aviation's price. Additionally, you may evaluate how the addition of Archer Aviation to your portfolios can decrease your overall portfolio volatility.
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Is Archer Aviation'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 Archer Aviation. If investors know Archer 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 Archer Aviation listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.69) | Return On Assets (0.49) | Return On Equity (1.06) |
The market value of Archer Aviation is measured differently than its book value, which is the value of Archer that is recorded on the company's balance sheet. Investors also form their own opinion of Archer Aviation's value that differs from its market value or its book value, called intrinsic value, which is Archer Aviation'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 Archer Aviation's market value can be influenced by many factors that don't directly affect Archer Aviation'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 Archer Aviation's value and its price as these two are different measures arrived at by different means. Investors typically determine if Archer Aviation is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Archer Aviation'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.