Chemocentryx Beneish M Score

CCXI -  USA Stock  

USD 25.26  1.12  4.64%

This module uses fundamental data of Chemocentryx to approximate the value of its Beneish M Score. Chemocentryx 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. Continue to Chemocentryx Piotroski F Score and Chemocentryx Altman Z Score analysis.

Chemocentryx Beneish M Score 

 
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The current Total Debt is estimated to increase to about 78.3 M. The current Debt Current is estimated to increase to about 7.8 M. Chemocentryx Receivables Turnover is most likely to increase significantly in the upcoming years. The last year's value of Receivables Turnover was reported at 372.16. The current Accounts Payable Turnover is estimated to increase to 10.60, while Operating Margin is projected to decrease to (100.36) .
At this time, it appears that Chemocentryx is an unlikely manipulator. The earnings manipulation may begin if Chemocentryx'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 Chemocentryx 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 Chemocentryx'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.
-2.25
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.28
Asset Quality
1.0
Expense Coverage
1.35
Gross Margin Strengs
0.99
Accruals Factor
1.35
Depreciation Resistance
1.0
Net Sales Growth
0.8
Financial Leverage Condition
0.82

Chemocentryx 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 Chemocentryx'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
Revenues59.6 M74.6 M
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense52.3 M48.5 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations(75 M)(73 M)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion3.4 M3.2 M
Significantly Up
Increasing
Slightly volatile
Total Assets643.8 M596.7 M
Significantly Up
Increasing
Slightly volatile
Investments531.1 M492.3 M
Significantly Up
Increasing
Slightly volatile
Investments Current501.6 M464.9 M
Significantly Up
Increasing
Slightly volatile
Investments Non Current24.2 M27.4 M
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net64.6 M59.9 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables199.5 K194.3 K
Fairly Up
Decreasing
Very volatile
Total Liabilities122.3 M153.3 M
Significantly Down
Increasing
Slightly volatile
Current Assets547.9 M507.8 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current95.9 M88.9 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities47.9 M59.3 M
Significantly Down
Increasing
Slightly volatile
Liabilities Non Current74.5 M94 M
Significantly Down
Increasing
Slightly volatile
Total Debt78.3 M72.5 M
Significantly Up
Increasing
Slightly volatile
Debt Current7.8 M7.2 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current70.4 M65.3 M
Significantly Up
Increasing
Slightly volatile
Operating Income(53.6 M)(49.7 M)
Significantly Down
Decreasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Chemocentryx 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

3.43 MillionShare
Chemocentryx 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 3.18 Million

Chemocentryx 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 Chemocentryx. 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.
201720182019202020212022 (projected)
Revenues82.5 M42.88 M36.13 M64.89 M74.62 M59.65 M
Total Assets189.33 M183.31 M209.08 M518.9 M596.73 M643.84 M
Current Assets179.83 M181.38 M174.36 M441.57 M507.81 M547.9 M
Assets Non Current9.5 M1.93 M34.72 M77.33 M88.93 M95.95 M
Total Liabilities110.06 M168.57 M143.08 M133.29 M153.28 M122.34 M
Current Liabilities32.94 M64.4 M59.08 M51.56 M59.29 M47.85 M
Operating Income16.49 M(40.27 M)(58.3 M)(55.18 M)(49.66 M)(53.58 M)
Investments95.2 M148.9 M163.06 M428.07 M492.28 M531.15 M
Investments Current87.27 M148.9 M133.61 M404.27 M464.91 M501.62 M

About Chemocentryx Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Chemocentryx's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Chemocentryx using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Chemocentryx 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.
ChemoCentryx, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of new medications for inflammatory disorders, autoimmune diseases, and cancer in the United States. It develops Avacopan, an orally administered selective complement 5a receptor inhibitor for the treatment of anti-neutrophil cytoplasmic autoantibody-associated vasculitis and completed Phase II clinical trial for the treatment of patients with severe hidradenitis suppurativa, as well as patients with complement 3 glomerulopathy. The company is also developing CCX559, an orally-administered inhibitor for programmed death protein 1programmed death-ligand 1 for the treatment of various cancers and CCX507, an orally-administered inhibitor of the chemokine receptor CC9, which has completed Phase I clinical trial or the treatment of inflammatory bowel disease. In addition, it develops CCX587 for the treatment of TH17 driven diseases. ChemoCentryx, Inc. was incorporated in 1996 and is headquartered in San Carlos, California.

Chemocentryx Investors Sentiment

The influence of Chemocentryx's 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 Chemocentryx. 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.

Chemocentryx Implied Volatility

    
  77.74  
Chemocentryx's implied volatility exposes the market's sentiment of Chemocentryx stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Chemocentryx's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Chemocentryx stock will not fluctuate a lot when Chemocentryx's options are near their expiration.
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 Chemocentryx 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, Chemocentryx's short interest history, or implied volatility extrapolated from Chemocentryx options trading.

Current Sentiment - CCXI

Chemocentryx Investor Sentiment

Most of Macroaxis users are currently bullish on Chemocentryx. What is your opinion about investing in Chemocentryx? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Pair Trading with Chemocentryx

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

Chemocentryx Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Chemocentryx and Brickell Biotech. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Continue to Chemocentryx Piotroski F Score and Chemocentryx Altman Z Score analysis. Note that the Chemocentryx information on this page should be used as a complementary analysis to other Chemocentryx'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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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Is Chemocentryx'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 Chemocentryx. If investors know Chemocentryx 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 Chemocentryx 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 Chemocentryx is measured differently than its book value, which is the value of Chemocentryx that is recorded on the company's balance sheet. Investors also form their own opinion of Chemocentryx's value that differs from its market value or its book value, called intrinsic value, which is Chemocentryx'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 Chemocentryx's market value can be influenced by many factors that don't directly affect Chemocentryx'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 Chemocentryx's value and its price as these two are different measures arrived at by different means. Investors typically determine Chemocentryx value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chemocentryx'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.