| AREN Stock | | | USD 2.94 0.18 5.77% |
This module uses fundamental data of Arena Group to approximate the value of its Beneish M Score. Arena Group 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
Arena Group Piotroski F Score and
Arena Group Altman Z Score analysis.
At this time, Arena Group's
Debt Current is very stable as compared to the past year. As of the 6th of December 2023,
Debt Non Current is likely to grow to about 367.4
K, while
Total Debt is likely to drop about 95.8
M. At this time, Arena Group's
Current Ratio is very stable as compared to the past year. As of the 6th of December 2023,
Gross Margin is likely to grow to 0.43, while
Asset Turnover is likely to drop 0.99.
At this time, it appears that Arena Group Holdings is an unlikely manipulator. The earnings manipulation may begin if Arena Group'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 Arena Group 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 Arena Group'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.
-3.51
Beneish M Score - Unlikely Manipulator
| Elasticity of Receivables | 0.8 | Focus |
| Gross Margin Strengs | 1.08 | Focus |
| Depreciation Resistance | 1.01 | Focus |
| Net Sales Growth | 1.08 | Focus |
| Financial Leverage Condition | 0.93 | Focus |
Arena Group 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 Arena Group'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.
Arena Group Holdings 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 Arena Group's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Arena Group in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Arena Group's degree of accounting gimmicks and manipulations.
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About Arena Group 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.
Arena Group 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 Arena Group. 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.
About Arena Group Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Arena Group Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Arena Group using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Arena Group Holdings 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.
The Arena Group Holdings, Inc., together with its subsidiaries, operates digital media platform the United States and internationally. The Arena Group Holdings, Inc. was incorporated in 1990 and is based in New York, New York. Arena operates under Internet Content Information classification in the United States and is traded on AMEX Exchange. It employs 333 people.
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 Arena Group 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, Arena Group's short interest history, or implied volatility extrapolated from Arena Group options trading.
Pair Trading with Arena Group
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 Arena Group 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 Arena Group will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Arena Group could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arena Group 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 Arena Group - 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 Arena Group Holdings to buy it.
The correlation of Arena Group is a statistical measure of how it moves in relation to other equities. 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 Arena Group moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arena Group Holdings 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 Arena Group 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.
When determining whether Arena Group Holdings
offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Arena Group'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 Arena Group Holdings Stock.
Outlined below are crucial reports that will aid in making a well-informed decision on Arena Group Holdings Stock: Check out
Arena Group Piotroski F Score and
Arena Group Altman Z Score analysis.
Note that the Arena Group Holdings information on this page should be used as a complementary analysis to other Arena Group'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
Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for Arena Stock analysis
When running Arena Group's price analysis, check to
measure Arena Group'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 Arena Group is operating at the current time. Most of Arena Group's value examination focuses on studying past and present price action to
predict the probability of Arena Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arena Group's price. Additionally, you may evaluate how the addition of Arena Group to your portfolios can decrease your overall portfolio volatility.
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Is Arena Group'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 Arena Group. If investors know Arena 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 Arena Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share | Revenue Per Share | Quarterly Revenue Growth | Return On Assets |
The market value of Arena Group Holdings is measured differently than its book value, which is the value of Arena that is recorded on the company's balance sheet. Investors also form their own opinion of Arena Group's value that differs from its market value or its book value, called intrinsic value, which is Arena Group'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 Arena Group's market value can be influenced by many factors that don't directly affect Arena Group'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 Arena Group's value and its price as these two are different measures arrived at by different means. Investors typically determine
if Arena Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arena Group'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.