Ebang International Holdings Stock Beneish M Score

EBON Stock  USD 9.06  0.36  3.82%   
This module uses fundamental data of Ebang International to approximate the value of its Beneish M Score. Ebang 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. Check out Ebang International Piotroski F Score and Ebang International Altman Z Score analysis.
  
As of the 28th of March 2024, Short and Long Term Debt Total is likely to grow to about 8.2 M, though Net Debt is likely to grow to (208.7 M). At this time, Ebang International's Company Equity Multiplier is very stable compared to the past year. As of the 28th of March 2024, Cash Per Share is likely to grow to 38.93, though Price Earnings Ratio is likely to grow to (0.45).
At this time, it appears that Ebang International is an unlikely manipulator. The earnings manipulation may begin if Ebang 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 Ebang 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 Ebang 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.
-3.04
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.11

Focus
Gross Margin Strengs

0.51

Focus
Accruals Factor

1.11

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.95

Focus
Financial Leverage Condition

0.9

Focus

Ebang 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 Ebang 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
Net Receivables2.9 MM
Notably Down
Very volatile
Total Revenue35.3 M37.2 M
Notably Down
Pretty Stable
Total Assets415.6 M395.8 M
Sufficiently Up
Slightly volatile
Total Current Assets324.9 M309.5 M
Sufficiently Up
Slightly volatile
Non Current Assets Total90.6 M86.3 M
Sufficiently Up
Slightly volatile
Property Plant Equipment44.2 M42.1 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization12.9 M12.3 M
Sufficiently Up
Slightly volatile
Selling General Administrative71.8 M68.4 M
Sufficiently Up
Slightly volatile
Total Current Liabilities13.2 M13.9 M
Notably Down
Pretty Stable
Non Current Liabilities Total4.5 M7.9 M
Way Down
Slightly volatile
Short Term Debt1.3 M1.4 M
Notably Down
Pretty Stable
Long Term Debt12.2 M20.3 M
Way Down
Slightly volatile
Short Term Investments6.4 M6.7 M
Notably Down
Slightly volatile

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

About Ebang 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.

Depreciation And Amortization

12.93 Million

At this time, Ebang International's Depreciation And Amortization is very stable compared to the past year.

Ebang 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 Ebang 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.
201920202021202220232024 (projected)
Net Receivables8.1M8.0M9.9M3.3M3.0M2.9M
Total Revenue109.1M19.0M51.5M32.3M37.2M35.3M
Total Assets82.6M144.2M385.9M344.2M395.8M415.6M
Total Current Assets28.8M68.6M298.8M269.1M309.5M324.9M
Net Debt20.2M(11.0M)(236.6M)(244.1M)(219.7M)(208.7M)
Short Term Debt5.7M2.5M1.4M1.5M1.4M1.3M
Operating Income(50.6M)(26.6M)2.0M(22.8M)(20.5M)(19.5M)
Investments(5.8M)(40.8M)2.0M6.6M5.9M6.2M
Gross Profit Margin(0.28)(0.15)0.570.620.710.36

About Ebang International Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ebang International Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ebang International using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ebang International Holdings 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.
Ebang International Holdings Inc., through its subsidiaries, engages in the research, design, and development of application-specific integrated circuit chips and manufacture of Bitcoin mining machines under the Ebit brand in China, the United States, Hong Kong, and internationally. The company was incorporated in 2018 and is headquartered in Hangzhou, China. Ebang International operates under Computer Hardware classification in the United States and is traded on NASDAQ Exchange. It employs 262 people.
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 Ebang 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, Ebang International's short interest history, or implied volatility extrapolated from Ebang International options trading.

Pair Trading with Ebang 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 Ebang 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 Ebang International will appreciate offsetting losses from the drop in the long position's value.

Moving together with Ebang Stock

  0.65KN Knowles Cor Financial Report 25th of April 2024 PairCorr

Moving against Ebang Stock

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The ability to find closely correlated positions to Ebang 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 Ebang 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 Ebang 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 Ebang International Holdings to buy it.
The correlation of Ebang International 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 Ebang International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ebang 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 Ebang 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
When determining whether Ebang International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ebang International'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 Ebang International Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ebang International Holdings Stock:

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Is Ebang 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 Ebang International. If investors know Ebang 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 Ebang International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(6.67)
Revenue Per Share
1.814
Quarterly Revenue Growth
(0.84)
Return On Assets
(0.09)
Return On Equity
(0.13)
The market value of Ebang International is measured differently than its book value, which is the value of Ebang that is recorded on the company's balance sheet. Investors also form their own opinion of Ebang International's value that differs from its market value or its book value, called intrinsic value, which is Ebang 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 Ebang International's market value can be influenced by many factors that don't directly affect Ebang 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 Ebang International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ebang International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ebang 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.