Gran Beneish M Score

Stocks . USA . 
Stock . Gran Tierra Energy
GTE Stock  USD 5.12  0.14  2.66%   
This module uses fundamental data of Gran Tierra to approximate the value of its Beneish M Score. Gran Tierra 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 Gran Tierra Piotroski F Score and Gran Tierra Altman Z Score analysis.
  
Gran Tierra Debt Non Current is projected to increase significantly based on the last few years of reporting. The past year's Debt Non Current was at 589.59 Million. Gran Tierra Calculated Tax Rate is projected to decrease significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 43.24. The current year's Receivables Turnover is expected to grow to 64.25, whereas PPandE Turnover is forecasted to decline to 0.63.
At this time, it appears that Gran Tierra Energy is a possible manipulator. The earnings manipulation may begin if Gran Tierra'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 Gran Tierra 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 Gran Tierra'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.
-1.5
Beneish M Score - Possible Manipulator
Elasticity of Receivables1.12Focus
Asset Quality3.52Focus
Expense Coverage1.0Focus
Gross Margin Strengs0.92Focus
Accruals Factor1.0Focus
Depreciation Resistance0.91Focus
Net Sales Growth0.92Focus
Financial Leverage Condition0.96Focus

Gran Tierra 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 Gran Tierra'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 Expense37.7 M41 M
Significantly Down
Slightly volatile
Revenues653.7 M711.4 M
Significantly Down
Pretty Stable
Trade and Non Trade Receivables11 M10.7 M
Fairly Up
Slightly volatile
Property Plant and Equipment Net1.1 B1.1 B
Sufficiently Down
Pretty Stable
Operating Income342.6 M317.6 M
Significantly Up
Very volatile
Net Cash Flow from Operations354.4 M427.7 M
Significantly Down
Pretty Stable
Liabilities Non Current613.3 M676.4 M
Moderately Down
Slightly volatile
Current Liabilities233.5 M241.6 M
Sufficiently Down
Very volatile
Total Liabilities846.8 M918 M
Significantly Down
Slightly volatile
Investments Non Current10 M7.8 M
Significantly Up
Slightly volatile
Investments Current50 M55.6 M
Moderately Down
Slightly volatile
Investments52.7 M55.6 M
Notably Down
Slightly volatile
Gross Margin0.70.757
Significantly Down
Slightly volatile
Depreciation Amortization and Accretion196.4 M183.1 M
Notably Up
Pretty Stable
Debt Non Current600.2 M589.6 M
Fairly Up
Slightly volatile
Debt Current59.9 M60.3 M
Slightly Down
Slightly volatile
Total Debt605.8 M589.6 M
Fairly Up
Slightly volatile
Assets Non Current1.1 B1.2 B
Fairly Down
Pretty Stable
Current Assets195.9 M168.6 M
Fairly Up
Slightly volatile
Total Assets1.3 B1.3 B
Slightly Up
Slightly volatile

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

280.99 Million

Gran Tierra Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 221.24 Million

Gran Tierra 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 Gran Tierra. 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.
201820192020202120222023 (projected)
Revenues613.43 M570.98 M237.84 M473.72 M711.39 M653.67 M
Total Assets1.68 B2.04 B1.2 B1.19 B1.34 B1.34 B
Current Assets202.53 M290.69 M133.87 M101.8 M168.59 M195.86 M
Assets Non Current1.47 B1.75 B1.07 B1.09 B1.17 B1.15 B
Total Liabilities646.83 M1.01 B944.69 M887.03 M918.04 M846.8 M
Current Liabilities169.38 M199.34 M113.64 M227.99 M241.64 M233.51 M
Total Debt399.42 M700.46 M774.77 M654.39 M589.59 M605.76 M
Debt Non Current399.42 M700.46 M774.77 M587.4 M589.59 M600.22 M
Operating Income199.02 M105.84 M(743.93 M)150.25 M317.57 M342.64 M
Gross Margin0.770.640.470.690.760.7

About Gran Tierra Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Gran Tierra Energy's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Gran Tierra using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Gran Tierra 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.
Gran Tierra Energy Inc., together with its subsidiaries, engages in the exploration and production of oil and gas properties in Colombia and Ecuador. The company was incorporated in 2003 and is headquartered in Calgary, Canada. Gran Tierra operates under Oil Gas EP classification in the United States and is traded on AMEX Exchange. It employs 319 people.

Gran Tierra Investors Sentiment

The influence of Gran Tierra'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 Gran. 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 Gran Tierra's public news can be used to forecast risks associated with an investment in Gran. The trend in average sentiment can be used to explain how an investor holding Gran can time the market purely based on public headlines and social activities around Gran Tierra Energy. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Gran Tierra'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 Gran Tierra'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 Gran Tierra's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Gran Tierra.
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 Gran Tierra 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, Gran Tierra's short interest history, or implied volatility extrapolated from Gran Tierra options trading.

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Check out Gran Tierra Piotroski F Score and Gran Tierra Altman Z Score analysis. You can also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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When running Gran Tierra's price analysis, check to measure Gran Tierra'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 Gran Tierra is operating at the current time. Most of Gran Tierra's value examination focuses on studying past and present price action to predict the probability of Gran Tierra's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gran Tierra's price. Additionally, you may evaluate how the addition of Gran Tierra to your portfolios can decrease your overall portfolio volatility.
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Is Gran Tierra'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 Gran Tierra. If investors know Gran 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 Gran Tierra 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
(0.44) 
Earnings Share
2.86
Revenue Per Share
18.984
Quarterly Revenue Growth
(0.17) 
Return On Assets
0.1289
The market value of Gran Tierra Energy is measured differently than its book value, which is the value of Gran that is recorded on the company's balance sheet. Investors also form their own opinion of Gran Tierra's value that differs from its market value or its book value, called intrinsic value, which is Gran Tierra'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 Gran Tierra's market value can be influenced by many factors that don't directly affect Gran Tierra's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
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Please note, there is a significant difference between Gran Tierra's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gran Tierra is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gran Tierra'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. Check out Gran Tierra Piotroski F Score and Gran Tierra Altman Z Score analysis.


 
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