Cvr Energy Stock Beneish M Score

CVI Stock  USD 34.87  0.28  0.80%   
This module uses fundamental data of CVR Energy to approximate the value of its Beneish M Score. CVR Energy 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 CVR Energy Piotroski F Score and CVR Energy Altman Z Score analysis.
For more detail on how to invest in CVR Stock please use our How to Invest in CVR Energy guide.
  
As of now, CVR Energy's Short and Long Term Debt is increasing as compared to previous years. As of now, CVR Energy's Price Book Value Ratio is decreasing as compared to previous years. The CVR Energy's current Price Earnings To Growth Ratio is estimated to increase to 0.21, while Short Term Coverage Ratios is projected to decrease to 1.45.
At this time, it appears that CVR Energy is a possible manipulator. The earnings manipulation may begin if CVR Energy'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 CVR Energy 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 CVR Energy'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.
-1.67
Beneish M Score - Possible Manipulator
Elasticity of Receivables

0.98

Focus
Asset Quality

3.81

Focus
Expense Coverage

1.12

Focus
Gross Margin Strengs

0.8

Focus
Accruals Factor

1.12

Focus
Depreciation Resistance

0.76

Focus
Net Sales Growth

0.7

Focus
Financial Leverage Condition

1.41

Focus

CVR Energy 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 CVR Energy'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 Receivables197.2 M286 M
Way Down
Slightly volatile
Total Revenue6.5 B9.2 B
Way Down
Slightly volatile
Total Assets3.5 B4.7 B
Way Down
Slightly volatile
Total Current Assets1.2 B2.2 B
Way Down
Slightly volatile
Non Current Assets Total2.2 B2.5 B
Fairly Down
Slightly volatile
Property Plant EquipmentB2.6 B
Way Down
Slightly volatile
Selling General Administrative111.2 M141 M
Significantly Down
Slightly volatile
Total Current Liabilities1.8 B1.7 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total1.5 BB
Way Down
Slightly volatile
Short Term Debt651 M620 M
Sufficiently Up
Slightly volatile
Long Term DebtB1.5 B
Way Down
Slightly volatile
Total Cash From Operating Activities995.4 M948 M
Sufficiently Up
Slightly volatile
Long Term Investments48.6 M95.2 M
Way Down
Slightly volatile

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

About CVR Energy 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

6.08 Billion

As of now, CVR Energy's Other Operating Expenses is increasing as compared to previous years.

CVR Energy 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 CVR Energy. 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 Receivables182M178M299M358M286M197.2M
Total Revenue6.4B3.9B7.2B10.9B9.2B6.5B
Total Assets3.9B4.0B3.9B4.1B4.7B3.5B
Total Current Assets1.3B1.4B1.4B1.6B2.2B1.2B
Net Debt557M1.0B1.2B1.1B1.6B1.7B
Short Term Debt3M19M22M21M620M651M
Long Term Debt1.1B1.6B1.7B1.5B1.5B1.0B
Operating Income580M(333M)87M963M1.1B1.2B
Investments(121M)(140M)3M(271M)(239M)(227.1M)

About CVR Energy Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze CVR Energy's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of CVR Energy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of CVR 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.
CVR Energy, Inc., together with its subsidiaries, engages in the petroleum refining and nitrogen fertilizer manufacturing activities in the United States. The company was founded in 1906 and is headquartered in Sugar Land, Texas. Cvr Energy operates under Oil Gas Refining Marketing classification in the United States and is traded on New York Stock Exchange. It employs 1429 people.

CVR Energy Investors Sentiment

The influence of CVR Energy'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 CVR. 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 market does not have solid backing from leading economists and market statisticians.
Investor biases related to CVR Energy's public news can be used to forecast risks associated with an investment in CVR. The trend in average sentiment can be used to explain how an investor holding CVR can time the market purely based on public headlines and social activities around CVR Energy. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
CVR Energy'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 CVR Energy'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 CVR Energy's news discussions. The higher the estimated score, the more favorable is the investor's outlook on CVR Energy.
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 CVR Energy 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, CVR Energy's short interest history, or implied volatility extrapolated from CVR Energy options trading.

Pair Trading with CVR Energy

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

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The ability to find closely correlated positions to CVR Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CVR Energy 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 CVR Energy - 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 CVR Energy to buy it.
The correlation of CVR Energy 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 CVR Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CVR 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 CVR Energy 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 CVR Energy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of CVR Energy'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 Cvr Energy Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cvr Energy Stock:
Check out CVR Energy Piotroski F Score and CVR Energy Altman Z Score analysis.
For more detail on how to invest in CVR Stock please use our How to Invest in CVR Energy guide.
You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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Is CVR Energy'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 CVR Energy. If investors know CVR 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 CVR Energy 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
(0.19)
Dividend Share
2
Earnings Share
7.65
Revenue Per Share
92.01
Quarterly Revenue Growth
(0.18)
The market value of CVR Energy is measured differently than its book value, which is the value of CVR that is recorded on the company's balance sheet. Investors also form their own opinion of CVR Energy's value that differs from its market value or its book value, called intrinsic value, which is CVR Energy'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 CVR Energy's market value can be influenced by many factors that don't directly affect CVR Energy'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 CVR Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if CVR Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CVR Energy'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.