Eurodry Beneish M Score

EDRY
 Stock
  

USD 17.80  0.29  1.60%   

This module uses fundamental data of Eurodry to approximate the value of its Beneish M Score. Eurodry 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 Eurodry Piotroski F Score and Eurodry Altman Z Score analysis.
  
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Eurodry Issuance Repayment of Debt Securities is fairly stable at the moment as compared to the past year. Eurodry reported Issuance Repayment of Debt Securities of 30.54 Million in 2021. Debt to Equity Ratio is likely to rise to 1.21 in 2022, whereas Total Debt is likely to drop slightly above 72 M in 2022. Eurodry Return on Average Equity is fairly stable at the moment as compared to the past year. Eurodry reported Return on Average Equity of 0.53 in 2021. Return on Invested Capital is likely to rise to 0.22 in 2022, whereas Asset Turnover is likely to drop 0.40 in 2022.
At this time, it appears that Eurodry is an unlikely manipulator. The earnings manipulation may begin if Eurodry'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 Eurodry 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 Eurodry'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.
-2.69
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.17Focus
Asset QualityN/AFocus
Expense Coverage0.87Focus
Gross Margin Strengs0.91Focus
Accruals Factor0.87Focus
Depreciation Resistance1.01Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

Eurodry 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 Eurodry'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
Revenues69.5 M64.4 M
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense2.5 M2.6 M
Notably Down
Increasing
Slightly volatile
Net Cash Flow from Operations42.2 M39.1 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion7.4 M7.7 M
Sufficiently Down
Increasing
Slightly volatile
Total Assets152.3 M161.3 M
Notably Down
Increasing
Slightly volatile
Property Plant and Equipment Net124.6 M128.5 M
Sufficiently Down
Increasing
Slightly volatile
Trade and Non Trade Receivables2.6 MM
Significantly Up
Increasing
Slightly volatile
Total Liabilities80.6 M82.4 M
Fairly Down
Increasing
Slightly volatile
Current Assets32.8 M30.4 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current129.4 M130.9 M
Fairly Down
Increasing
Slightly volatile
Current Liabilities16 M17.7 M
Moderately Down
Increasing
Slightly volatile
Liabilities Non Current56.3 M64.7 M
Fairly Down
Increasing
Very volatile
Total Debt72 M78.7 M
Significantly Down
Increasing
Slightly volatile
Debt Current12.2 M13.9 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current59.8 M64.7 M
Significantly Down
Increasing
Slightly volatile
Operating Income42 M38.9 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.730.8
Significantly Down
Increasing
Slightly volatile

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

About Eurodry 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

7.38 Million

Share
Eurodry Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Eurodry reported Depreciation Amortization and Accretion of 7.66 Million in 2021

Eurodry 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 Eurodry. 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)
Revenues19.16 M24.52 M27.24 M22.29 M64.44 M69.53 M
Total Assets97.45 M127.71 M117.69 M107.51 M161.33 M152.3 M
Current Assets7.62 M14.47 M9.58 M6.06 M30.41 M32.81 M
Assets Non Current89.83 M113.24 M108.11 M101.46 M130.92 M129.45 M
Total Liabilities64.59 M65.41 M61.16 M56.97 M82.41 M80.63 M
Current Liabilities9.64 M8.98 M11.17 M19.26 M17.71 M15.97 M
Total Debt38.33 M63.36 M56.5 M51.11 M78.65 M72.03 M
Debt Current7.97 M6.93 M6.81 M13.79 M13.95 M12.24 M
Debt Non Current30.36 M56.43 M49.69 M37.32 M64.7 M59.79 M
Operating Income2.63 M3.99 M3.01 M(2.74 M)38.89 M41.96 M
Gross Margin0.510.550.50.370.80.73

About Eurodry Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Eurodry's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Eurodry using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Eurodry 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.
EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. The company owns and operates drybulk carriers that transport major bulks, such as iron ore, coal, and grains and minor bulks, including bauxite, phosphate, and fertilizers. As of March 31, 2022, it operated a fleet of ten drybulk carriers comprising five Panamax drybulk carriers, two Ultramax drybulk carrier, two Kamsarmax carriers, and one Supramax drybulk carrier with a cargo capacity of 726,555 deadweight tons. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.

Eurodry Investors Sentiment

The influence of Eurodry'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 Eurodry. 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.
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 Eurodry 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, Eurodry's short interest history, or implied volatility extrapolated from Eurodry options trading.

Current Sentiment - EDRY

Eurodry Investor Sentiment

Macroaxis portfolio users are insensible in their opinion about investing in Eurodry. What is your opinion about investing in Eurodry? Are you bullish or bearish?
Bullish
Bearish
50% Bullish
50% Bearish

Pair Trading with Eurodry

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

Eurodry Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Eurodry could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Eurodry 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 Eurodry - 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 Eurodry to buy it.
The correlation of Eurodry 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 Eurodry moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Eurodry 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 Eurodry 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 Eurodry Piotroski F Score and Eurodry Altman Z Score analysis. Note that the Eurodry information on this page should be used as a complementary analysis to other Eurodry'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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When running Eurodry price analysis, check to measure Eurodry'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 Eurodry is operating at the current time. Most of Eurodry's value examination focuses on studying past and present price action to predict the probability of Eurodry's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Eurodry's price. Additionally, you may evaluate how the addition of Eurodry to your portfolios can decrease your overall portfolio volatility.
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Is Eurodry'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 Eurodry. If investors know Eurodry 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 Eurodry 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
18.16
Market Capitalization
52 M
Quarterly Revenue Growth YOY
1.13
Return On Assets
0.21
Return On Equity
0.59
The market value of Eurodry is measured differently than its book value, which is the value of Eurodry that is recorded on the company's balance sheet. Investors also form their own opinion of Eurodry's value that differs from its market value or its book value, called intrinsic value, which is Eurodry'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 Eurodry's market value can be influenced by many factors that don't directly affect Eurodry'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 Eurodry's value and its price as these two are different measures arrived at by different means. Investors typically determine Eurodry value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eurodry'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.