Circor Beneish M Score

CIR
 Stock
  

USD 24.79  0.45  1.78%   

This module uses fundamental data of Circor International to approximate the value of its Beneish M Score. Circor International 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 Circor International Piotroski F Score and Circor International Altman Z Score analysis.
  
Circor International Debt Current is relatively stable at the moment as compared to the past year. Circor International reported last year Debt Current of 1.61 Million. As of 11/28/2022, Long Term Debt to Equity is likely to grow to 4.13, while Debt Non Current is likely to drop slightly above 467.7 M. Circor International Net Current Assets as percentage of Total Assets are relatively stable at the moment as compared to the past year. Circor International reported last year Net Current Assets as percentage of Total Assets of 19.68. As of 11/28/2022, Asset Turnover is likely to grow to 0.89, while Receivables Turnover is likely to drop 6.28.
At this time, it appears that Circor International is an unlikely manipulator. The earnings manipulation may begin if Circor International'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 Circor International 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 Circor International'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.
-2.59
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.16Focus
Asset Quality0.9Focus
Expense Coverage1.06Focus
Gross Margin Strengs0.94Focus
Accruals Factor1.06Focus
Depreciation Resistance1.13Focus
Net Sales Growth0.97Focus
Financial Leverage Condition0.9Focus

Circor International 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 Circor International'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 Expense231.5 M224.9 M
Fairly Up
Increasing
Slightly volatile
Revenues737.3 M758.7 M
Fairly Down
Increasing
Very volatile
Trade and Non Trade Receivables113.2 M100.1 M
Moderately Up
Decreasing
Slightly volatile
Property Plant and Equipment Net160.3 M154.5 M
Sufficiently Up
Increasing
Slightly volatile
Operating Income(30.1 M)(29.3 M)
Fairly Down
Decreasing
Slightly volatile
Net Cash Flow from Operations10.7 M10.4 M
Fairly Up
Decreasing
Stable
Liabilities Non Current630.3 M692 M
Significantly Down
Increasing
Slightly volatile
Current Liabilities187.1 M193.5 M
Sufficiently Down
Increasing
Very volatile
Total Liabilities729.7 M885.6 M
Significantly Down
Increasing
Slightly volatile
Investments Current86.4 K85.5 K
Fairly Up
Decreasing
Slightly volatile
Investments86.4 K85.5 K
Fairly Up
Decreasing
Slightly volatile
Gross Margin28.6530.3659
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion56.8 M65.2 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current467.7 M511.7 M
Significantly Down
Increasing
Slightly volatile
Debt Current1.7 M1.6 M
Fairly Up
Decreasing
Slightly volatile
Total Debt471.3 M513.3 M
Significantly Down
Increasing
Slightly volatile
Assets Non Current665 M625.1 M
Notably Up
Increasing
Slightly volatile
Current Assets406.2 M394.2 M
Fairly Up
Increasing
Stable
Total Assets968.4 MB
Notably Down
Increasing
Slightly volatile

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

About Circor International 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.

Operating Expenses

263.89 Million

Circor International Operating Expenses is relatively stable at the moment as compared to the past year. Circor International reported last year Operating Expenses of 259.7 Million

Circor International 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 Circor International. 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)
Revenues661.71 M1.18 B964.31 M773.27 M758.67 M737.31 M
Total Assets1.91 B1.79 B1.47 B1.13 B1.02 B968.4 M
Current Assets638.39 M648.05 M575.12 M406.56 M394.17 M406.23 M
Assets Non Current1.27 B1.14 B895.83 M698.15 M625.13 M664.99 M
Total Liabilities1.3 B1.26 B1.08 B924.49 M885.58 M729.69 M
Current Liabilities322.52 M284.06 M236.38 M165.19 M193.54 M187.14 M
Total Debt795.21 M786.04 M636.3 M509.51 M513.3 M471.27 M
Debt Non Current787.34 M778.19 M636.3 M507.89 M511.69 M467.73 M
Operating Income20.57 M9.38 M37.68 M(60.45 M)(29.32 M)(30.09 M)
Gross Margin31.0230.3529.0632.0231.3528.65

About Circor International Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Circor International's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Circor International using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Circor International 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.
CIRCOR International, Inc. designs, manufactures, and distributes flow and motion control products in Europe, the Middle East, Africa, North America, and internationally. CIRCOR International, Inc. was incorporated in 1999 and is headquartered in Burlington, Massachusetts. Circor International operates under Specialty Industrial Machinery classification in the United States and is traded on New York Stock Exchange. It employs 3100 people.

Circor International Investors Sentiment

The influence of Circor International'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 Circor. 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.
Investor biases related to Circor International's public news can be used to forecast risks associated with investment in Circor. The trend in average sentiment can be used to explain how an investor holding Circor can time the market purely based on public headlines and social activities around Circor International. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Circor International's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Circor International's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Circor International's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Circor International.
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 Circor International 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, Circor International's short interest history, or implied volatility extrapolated from Circor International options trading.

Pair Trading with Circor International

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

Moving together with Circor International

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The ability to find closely correlated positions to Circor International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Circor International 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 Circor International - 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 Circor International to buy it.
The correlation of Circor International 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 Circor International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Circor International 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 Circor International 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 Circor International Piotroski F Score and Circor International Altman Z Score analysis. You can also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running Circor International price analysis, check to measure Circor International'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 Circor International is operating at the current time. Most of Circor International's value examination focuses on studying past and present price action to predict the probability of Circor International's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Circor International's price. Additionally, you may evaluate how the addition of Circor International to your portfolios can decrease your overall portfolio volatility.
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Is Circor International'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 Circor International. If investors know Circor 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 Circor International 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 YOY
27.57
Market Capitalization
514 M
Quarterly Revenue Growth YOY
0.03
Return On Assets
0.022
Return On Equity
(0.09) 
The market value of Circor International is measured differently than its book value, which is the value of Circor that is recorded on the company's balance sheet. Investors also form their own opinion of Circor International's value that differs from its market value or its book value, called intrinsic value, which is Circor International'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 Circor International's market value can be influenced by many factors that don't directly affect Circor International'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 Circor International's value and its price as these two are different measures arrived at by different means. Investors typically determine Circor International value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Circor International'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.