Community Bank System Stock Beneish M Score

CBU Stock  USD 48.03  0.63  1.33%   
This module uses fundamental data of Community Bank to approximate the value of its Beneish M Score. Community Bank 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 Community Bank Piotroski F Score and Community Bank Altman Z Score analysis.
  
At this time, Community Bank's Net Debt is comparatively stable compared to the past year. Long Term Debt To Capitalization is likely to gain to 0.39 in 2024, whereas Long Term Debt is likely to drop slightly above 262.3 M in 2024. At this time, Community Bank's Total Debt To Capitalization is comparatively stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to gain to 5.25 in 2024, whereas Price To Sales Ratio is likely to drop 2.69 in 2024.
At this time, it appears that Community Bank System is an unlikely manipulator. The earnings manipulation may begin if Community Bank'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 Community Bank 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 Community Bank'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.
-2.58
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.01

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.94

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.6

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Community Bank 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 Community Bank'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
Net Receivables57.3 M54.5 M
Sufficiently Up
Slightly volatile
Total Revenue793.8 M756 M
Sufficiently Up
Slightly volatile
Total Assets16.4 B15.6 B
Sufficiently Up
Slightly volatile
Total Current Assets234.4 M246.7 M
Notably Down
Pretty Stable
Non Current Assets Total16.2 B15.4 B
Sufficiently Up
Slightly volatile
Property Plant Equipment104.3 M184.9 M
Way Down
Slightly volatile
Depreciation And Amortization28.9 M27.5 M
Sufficiently Up
Slightly volatile
Selling General Administrative295.9 M281.8 M
Sufficiently Up
Slightly volatile
Total Current Liabilities6.7 B6.4 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total7.8 B7.4 B
Sufficiently Up
Slightly volatile
Short Term Debt231.3 M361.4 M
Way Down
Very volatile
Long Term Debt262.3 M407.6 M
Way Down
Slightly volatile
Total Cash From Operating Activities239.8 M228.4 M
Sufficiently Up
Slightly volatile
Short Term Investments2.7 B2.9 B
Significantly Down
Slightly volatile
Long Term Investments5.1 B4.1 B
Fairly Up
Slightly volatile
Gross Profit Margin0.450.48
Notably Down
Slightly volatile

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

About Community Bank 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.

Other Operating Expenses

606.62 Million

At this time, Community Bank's Other Operating Expenses is comparatively stable compared to the past year.

Community Bank 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 Community Bank. 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 Receivables31.6M39.0M35.9M52.6M54.5M57.3M
Total Revenue589.8M596.4M620.6M679.4M756.0M793.8M
Total Assets11.4B13.9B15.6B15.8B15.6B16.4B
Total Current Assets3.3B5.2B6.8B4.4B246.7M234.4M
Net Debt139.8M(1.3B)(1.5B)1.7B615.6M646.4M
Short Term Debt8.3M287.7M333.4M768.4M361.4M231.3M
Long Term Debt91.1M80.6M329.9M1.1B407.6M262.3M
Operating Income209.3M206.1M241.3M278.6M(13.0M)(12.3M)
Investments(148.1M)(415.5M)(1.5B)(2.1B)378.8M397.8M

About Community Bank Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Community Bank System's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Community Bank using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Community Bank System 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.
Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, and municipal customers. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York. Community Bank operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 2728 people.

Pair Trading with Community Bank

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 Community Bank 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 Community Bank will appreciate offsetting losses from the drop in the long position's value.

Moving together with Community Stock

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Moving against Community Stock

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  0.62RF-PC Regions FinancialPairCorr
The ability to find closely correlated positions to Community Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Community Bank 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 Community Bank - 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 Community Bank System to buy it.
The correlation of Community Bank 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 Community Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Community Bank System 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 Community Bank 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.
Pair CorrelationCorrelation Matching
When determining whether Community Bank System is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Community Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Community Bank System Stock. Highlighted below are key reports to facilitate an investment decision about Community Bank System Stock:
Check out Community Bank Piotroski F Score and Community Bank Altman Z Score analysis.
Note that the Community Bank System information on this page should be used as a complementary analysis to other Community Bank'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.

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When running Community Bank's price analysis, check to measure Community Bank'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 Community Bank is operating at the current time. Most of Community Bank's value examination focuses on studying past and present price action to predict the probability of Community Bank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Community Bank's price. Additionally, you may evaluate how the addition of Community Bank to your portfolios can decrease your overall portfolio volatility.
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Is Community Bank'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 Community Bank. If investors know Community 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 Community Bank 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
(0.36)
Dividend Share
1.78
Earnings Share
2.45
Revenue Per Share
11.953
Quarterly Revenue Growth
(0)
The market value of Community Bank System is measured differently than its book value, which is the value of Community that is recorded on the company's balance sheet. Investors also form their own opinion of Community Bank's value that differs from its market value or its book value, called intrinsic value, which is Community Bank'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 Community Bank's market value can be influenced by many factors that don't directly affect Community Bank'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 Community Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if Community Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Community Bank'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.