Loop Industries Beneish M Score

LOOP -  USA Stock  

USD 13.18  0.47  3.44%

This module uses fundamental data of Loop Industries to approximate the value of its Beneish M Score. Loop Industries 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. Additionally, see Loop Industries Piotroski F Score and Loop Industries Altman Z Score analysis.

Loop Industries Beneish M Score 

 
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Loop Industries Total Debt is very stable at the moment as compared to the past year. Loop Industries reported last year Total Debt of 2.45 Million. As of 8th of December 2021, Debt Non Current is likely to grow to about 2 M, while Debt Current is likely to drop about 521.2 K. Loop Industries Book Value per Share is very stable at the moment as compared to the past year. Loop Industries reported last year Book Value per Share of 0.80. As of 8th of December 2021, Current Ratio is likely to grow to 10.69, though Earnings per Diluted Share are likely to grow to (0.67) .
At this time, it appears that Loop Industries is an unlikely manipulator. The earnings manipulation may begin if Loop Industries' 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 Loop Industries 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 Loop Industries' 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.
-5.08
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
N/A
Asset Quality
0.63
Expense Coverage
N/A
Gross Margin Strengs
1.0
Accruals Factor
N/A
Depreciation Resistance
1.41
Net Sales Growth
N/A
Financial Leverage Condition
0.76

Loop Industries 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 Loop Industries' 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 Expense9.9 M11.5 M
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion833.2 K775.7 K
Notably Up
Increasing
Slightly volatile
Total Assets45.4 M43.4 M
Sufficiently Up
Increasing
Slightly volatile
Investments1.2 M1.5 M
Significantly Down
Decreasing
Slightly volatile
Investments Non Current1.2 M1.5 M
Significantly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net5.7 M3.5 M
Way Up
Increasing
Slightly volatile
Total Liabilities7.9 M10.6 M
Way Down
Increasing
Slightly volatile
Current Assets38 M37.6 M
Slightly Up
Increasing
Slightly volatile
Assets Non Current7.4 M5.8 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities5.9 M9.1 M
Way Down
Increasing
Slightly volatile
Liabilities Non CurrentM1.5 M
Significantly Up
Increasing
Slightly volatile
Total Debt2.5 M2.5 M
Fairly Up
Increasing
Slightly volatile
Debt Current521.2 K938.1 K
Way Down
Increasing
Slightly volatile
Debt Non CurrentM1.5 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.770.77
Steady
Decreasing
Slightly volatile

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

About Loop Industries 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

833,222Share
Loop Industries Depreciation Amortization and Accretion is very stable at the moment as compared to the past year. Loop Industries reported last year Depreciation Amortization and Accretion of 775,675

About Loop Industries Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Loop Industries's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Loop Industries using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Loop Industries 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.
Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate plastics and polyester fibers into base building blocks. The company was incorporated in 2010 and is based in Terrebonne, Canada. Loop Industries operates under Specialty Chemicals classification in the United States and is traded on NASDAQ Exchange. It employs 64 people.

Loop Industries Investors Sentiment

The influence of Loop Industries' 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 Loop Industries. 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.

Loop Industries Implied Volatility

    
  64.93  
Loop Industries' implied volatility exposes the market's sentiment of Loop Industries stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Loop Industries' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Loop Industries stock will not fluctuate a lot when Loop Industries' options are near their expiration.
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 Loop Industries 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, Loop Industries' short interest history, or implied volatility extrapolated from Loop Industries options trading.

Current Sentiment - LOOP

Loop Industries Investor Sentiment

Most of Macroaxis users are now bullish on Loop Industries. What is your trading attitude regarding investing in Loop Industries? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Additionally, see Loop Industries Piotroski F Score and Loop Industries Altman Z Score analysis. Note that the Loop Industries information on this page should be used as a complementary analysis to other Loop Industries' 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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Is Loop Industries' 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 Loop Industries. If investors know Loop Industries 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 Loop Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Loop Industries is measured differently than its book value, which is the value of Loop Industries that is recorded on the company's balance sheet. Investors also form their own opinion of Loop Industries' value that differs from its market value or its book value, called intrinsic value, which is Loop Industries' 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 Loop Industries' market value can be influenced by many factors that don't directly affect Loop Industries' 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 Loop Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine Loop Industries value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Loop Industries' 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.