Capstone Beneish M Score

CGRN
 Stock
  

USD 1.66  0.01  0.60%   

This module uses fundamental data of Capstone Green to approximate the value of its Beneish M Score. Capstone Green 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 Capstone Green Piotroski F Score and Capstone Green Altman Z Score analysis.
  
Capstone Green Total Debt is quite stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 61.97 Million. Debt Current is expected to rise to about 692.8 K this year, although the value of Issuance Repayment of Debt Securities will most likely fall to (703 K). Capstone Green Accrued Expenses Turnover is quite stable at the moment as compared to the past year. The company's current value of Accrued Expenses Turnover is estimated at 20.11. Cash and Equivalents Turnover is expected to rise to 2.43 this year, although the value of Operating Margin will most likely fall to (27.58) .
At this time, it appears that Capstone Green Energy is an unlikely manipulator. The earnings manipulation may begin if Capstone Green'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 Capstone Green 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 Capstone Green'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.
-2.47
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.74Focus
Asset QualityN/AFocus
Expense Coverage0.78Focus
Gross Margin Strengs0.83Focus
Accruals Factor0.78Focus
Depreciation Resistance1.21Focus
Net Sales Growth1.27Focus
Financial Leverage Condition1.08Focus

Capstone Green 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 Capstone Green'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
Selling General and Administrative Expense22.6 M23 M
Fairly Down
Decreasing
Slightly volatile
Revenues88.5 M69.6 M
Significantly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables24.3 M25.9 M
Notably Down
Increasing
Stable
Property Plant and Equipment Net19.5 M18 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations(29.7 M)(27.5 M)
Significantly Down
Increasing
Stable
Liabilities Non Current62.3 M57.7 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities42.9 M37.6 M
Fairly Up
Decreasing
Slightly volatile
Total Liabilities102.9 M95.4 M
Significantly Up
Increasing
Slightly volatile
Gross Margin10.2212.2593
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion2.2 M2.6 M
Fairly Down
Decreasing
Slightly volatile
Debt Non Current61.2 M56.8 M
Significantly Up
Increasing
Slightly volatile
Debt Current692.8 K675 K
Fairly Up
Decreasing
Slightly volatile
Total Debt62 M57.4 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current31.9 M29.6 M
Significantly Up
Increasing
Slightly volatile
Current Assets78.4 M71.2 M
Significantly Up
Decreasing
Stable
Total Assets100.9 M100.8 M
Slightly Up
Increasing
Very volatile

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

About Capstone Green 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

2.23 Million

Capstone Green Depreciation Amortization and Accretion is quite stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 2.23 Million

Capstone Green 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 Capstone Green. 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)
Revenues82.84 M83.41 M68.93 M67.64 M69.64 M88.48 M
Total Assets58.37 M79.96 M73.95 M106.02 M100.77 M100.86 M
Current Assets53.81 M70.11 M56.76 M86.91 M71.21 M78.42 M
Assets Non Current4.56 M9.85 M17.2 M19.11 M29.57 M31.9 M
Total Liabilities32.61 M56.81 M60.93 M92.85 M95.36 M102.89 M
Current Liabilities32.09 M28.09 M26.95 M34.46 M37.62 M42.9 M
Total Debt8.85 M27.34 M33.51 M58.2 M57.43 M61.97 M
Debt Current8.72 M31 K477 K576 K675 K692.76 K
Debt Non Current130 K27.31 M33.04 M57.63 M56.76 M61.24 M
Operating Income(8.67 M)(15.11 M)(16.83 M)(13.95 M)(17.8 M)(19.21 M)
Gross Margin18.0811.3313.110.1412.2610.22

About Capstone Green Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Capstone Green Energy's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Capstone Green using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Capstone Green Energy 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.
Capstone Green Energy Corporation develops, manufactures, markets, and services microturbine technology solutions for use in stationary distributed power generation and distribution networks applications worldwide. Capstone Green Energy Corporation was founded in 1988 and is headquartered in Van Nuys, California. Capstone Green operates under Specialty Industrial Machinery classification in the United States and is traded on NASDAQ Exchange. It employs 133 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Capstone Green without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Capstone Green

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 Capstone Green 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 Capstone Green will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Capstone Green could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Capstone Green 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 Capstone Green - 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 Capstone Green Energy to buy it.
The correlation of Capstone Green 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 Capstone Green moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Capstone Green Energy 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 Capstone Green 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
Continue to Capstone Green Piotroski F Score and Capstone Green Altman Z Score analysis. You can also try Money Managers module to screen money managers from public funds and ETFs managed around the world.

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Is Capstone Green'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 Capstone Green. If investors know Capstone 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 Capstone Green listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
30.6 M
Quarterly Revenue Growth YOY
0.21
Return On Assets
(0.07) 
Return On Equity
(1.66) 
The market value of Capstone Green Energy is measured differently than its book value, which is the value of Capstone that is recorded on the company's balance sheet. Investors also form their own opinion of Capstone Green's value that differs from its market value or its book value, called intrinsic value, which is Capstone Green'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 Capstone Green's market value can be influenced by many factors that don't directly affect Capstone Green'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 Capstone Green's value and its price as these two are different measures arrived at by different means. Investors typically determine Capstone Green value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Capstone Green'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.