Permian Basin Royalty Stock Beneish M Score
| PBT Stock | USD 12.54 0.07 0.56% |
Permian | Beneish M Score |
At this time, it appears that Permian Basin Royalty is a possible manipulator. The earnings manipulation may begin if Permian Basin'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 Permian Basin 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 Permian Basin'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.
98.66
Beneish M Score - Possible Manipulator
Permian Basin 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 Permian Basin'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 Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Net Receivables | 374.1 K | 420.8 K |
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| Total Revenue | 39.1 M | 29.1 M |
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| Total Assets | 4.3 M | 6.3 M |
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| Total Current Assets | 3.7 M | 6.1 M |
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| Non Current Assets Total | 210.4 K | 221.5 K |
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| Property Plant Equipment | 394.9 K | 251.5 K |
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| Selling General Administrative | 888.7 K | 1.1 M |
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| Total Current Liabilities | 2.8 M | 5 M |
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| Non Current Liabilities Total | 915.6 K | 990 K |
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| Operating Income | 37.9 M | 28 M |
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| Long Term Investments | 457.1 K | 382.1 K |
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| Gross Profit Margin | 797.6 K | 897.3 K |
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Permian Basin Royalty 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 Permian Basin's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Permian Basin in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Permian Basin's degree of accounting gimmicks and manipulations.
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About Permian Basin 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.
Other Operating Expenses |
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Permian Basin 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 Permian Basin. 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.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Total Revenue | 20.5M | 12.0M | 11.8M | 54.5M | 29.1M | 39.1M | |
| Total Assets | 3.3M | 2.1M | 2.6M | 3.1M | 6.3M | 4.3M | |
| Total Current Assets | 2.9M | 1.7M | 2.2M | 2.9M | 6.1M | 3.7M | |
| Non Current Assets Total | 424.5K | 382.9K | 352.7K | 279.4K | 221.5K | 210.4K | |
| Property Plant Equipment | 424.5K | 382.9K | 352.7K | 279.4K | 251.5K | 394.9K | |
| Selling General Administrative | 1.1M | 1.0M | 1.1M | 922.4K | 1.1M | 888.7K | |
| Total Current Liabilities | 1.8M | 625.4K | 1.1M | 1.8M | 5.0M | 2.8M | |
| Net Debt | (2.9B) | (1.7B) | (2.2B) | (2.86) | (6.1B) | (5.7B) | |
| Operating Income | 19.4M | 11.0M | 10.7M | 53.5M | 28.0M | 37.9M | |
| Total Cash From Operating Activities | 19.4M | (41.6M) | (30.2M) | (73.3M) | (58.0M) | (55.1M) |
Permian Basin ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Permian Basin's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Permian Basin's managers, analysts, and investors.Environmental | Governance | Social |
About Permian Basin Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Permian Basin Royalty's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Permian Basin using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Permian Basin Royalty 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.
Pair Trading with Permian Basin
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 Permian Basin 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 Permian Basin will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Permian Basin could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Permian Basin 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 Permian Basin - 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 Permian Basin Royalty to buy it.
The correlation of Permian Basin 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 Permian Basin moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Permian Basin Royalty 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 Permian Basin 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.Check out Permian Basin Piotroski F Score and Permian Basin Altman Z Score analysis. Note that the Permian Basin Royalty information on this page should be used as a complementary analysis to other Permian Basin'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 the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for Permian Stock analysis
When running Permian Basin's price analysis, check to measure Permian Basin'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 Permian Basin is operating at the current time. Most of Permian Basin's value examination focuses on studying past and present price action to predict the probability of Permian Basin's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Permian Basin's price. Additionally, you may evaluate how the addition of Permian Basin to your portfolios can decrease your overall portfolio volatility.
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Is Permian Basin'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 Permian Basin. If investors know Permian 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 Permian Basin 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 0.159 | Dividend Share 0.616 | Earnings Share 0.62 | Revenue Per Share 0.642 | Quarterly Revenue Growth 0.158 |
The market value of Permian Basin Royalty is measured differently than its book value, which is the value of Permian that is recorded on the company's balance sheet. Investors also form their own opinion of Permian Basin's value that differs from its market value or its book value, called intrinsic value, which is Permian Basin'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 Permian Basin's market value can be influenced by many factors that don't directly affect Permian Basin'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 Permian Basin's value and its price as these two are different measures arrived at by different means. Investors typically determine if Permian Basin is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Permian Basin'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.