Itau Unibanco Banco Stock Beneish M Score

ITUB Stock  USD 6.93  0.01  0.14%   
This module uses fundamental data of Itau Unibanco to approximate the value of its Beneish M Score. Itau Unibanco 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 Itau Unibanco Piotroski F Score and Itau Unibanco Altman Z Score analysis.
  
At present, Itau Unibanco's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Net Debt is expected to grow to about 1 T, whereas Short and Long Term Debt is forecasted to decline to about 109.7 B. At present, Itau Unibanco's Short Term Coverage Ratios is projected to slightly decrease based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 11.96, whereas Price To Sales Ratio is forecasted to decline to 0.91.
At this time, Itau Unibanco's M Score is unavailable. The earnings manipulation may begin if Itau Unibanco'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 Itau Unibanco 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 Itau Unibanco'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.
-2.23
Beneish M Score - Unavailable
Elasticity of Receivables

1.0

Focus
Asset Quality

1.08

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.73

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Itau Unibanco 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 Itau Unibanco'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 Receivables94.6 B90.1 B
Sufficiently Up
Slightly volatile
Total Revenue362 B344.8 B
Sufficiently Up
Slightly volatile
Total Assets2.7 T2.6 T
Sufficiently Up
Slightly volatile
Total Current Assets468.9 B612.9 B
Way Down
Pretty Stable
Non Current Assets TotalT1.9 T
Sufficiently Up
Slightly volatile
Property Plant Equipment14 B13.4 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization6.9 B6.5 B
Sufficiently Up
Slightly volatile
Selling General Administrative76.1 B72.5 B
Sufficiently Up
Slightly volatile
Total Current Liabilities883.4 B841.3 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total1.6 T1.5 T
Sufficiently Up
Slightly volatile
Short Term Debt551.1 B524.9 B
Sufficiently Up
Slightly volatile
Long Term Debt332.9 B317.1 B
Sufficiently Up
Slightly volatile
Operating Income140.6 M148 M
Notably Down
Pretty Stable
Short Term Investments146.2 B139.2 B
Sufficiently Up
Slightly volatile
Long Term Investments439.5 B815.9 B
Way Down
Slightly volatile
Gross Profit Margin0.780.45
Way Up
Slightly volatile

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

About Itau Unibanco 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.

Total Assets

2.68 Trillion

At present, Itau Unibanco's Total Assets are projected to increase significantly based on the last few years of reporting.

Itau Unibanco 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 Itau Unibanco. 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 Receivables10.0B56.9B66.3B78.4B90.1B94.6B
Total Revenue112.1B94.7B121.8B138.6B344.8B362.0B
Total Assets1.6T2.0T2.1T2.3T2.6T2.7T
Total Current Assets242.9B358.8B391.0B7.0B612.9B468.9B
Net Debt123.1B107.6B102.2B217.2B998.5B1.0T
Short Term Debt123.9B102.1B104.8B148.3B524.9B551.1B
Long Term Debt155.3B192.4B211.1B275.7B317.1B332.9B
Operating Income30.5B9.1B40.6B175.0B148M140.6M
Investments(38.7B)753M4.0B(73.6B)(67.1B)(63.7B)

About Itau Unibanco Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Itau Unibanco Banco's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Itau Unibanco using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Itau Unibanco Banco 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.
Ita Unibanco Holding S.A. offers a range of financial products and services to individuals and corporate customers in Brazil and internationally. Ita Unibanco Holding S.A. is a subsidiary of IUPAR - Ita Unibanco Participaes S.A. Itau Unibanco operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 99600 people.

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When determining whether Itau Unibanco Banco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Itau Unibanco'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 Itau Unibanco Banco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Itau Unibanco Banco Stock:
Check out Itau Unibanco Piotroski F Score and Itau Unibanco Altman Z Score analysis.
You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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Is Itau Unibanco'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 Itau Unibanco. If investors know Itau 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 Itau Unibanco 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
0.203
Dividend Share
2.193
Earnings Share
0.68
Revenue Per Share
12.708
Quarterly Revenue Growth
0.113
The market value of Itau Unibanco Banco is measured differently than its book value, which is the value of Itau that is recorded on the company's balance sheet. Investors also form their own opinion of Itau Unibanco's value that differs from its market value or its book value, called intrinsic value, which is Itau Unibanco'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 Itau Unibanco's market value can be influenced by many factors that don't directly affect Itau Unibanco'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 Itau Unibanco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Itau Unibanco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Itau Unibanco'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.