This module uses fundamental data of Purecycle Technologies to approximate the value of its Beneish M Score. Purecycle Technologies 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 Purecycle Technologies Piotroski F Score and Purecycle Technologies Altman Z Score analysis.
At this time, Purecycle Technologies' Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 466.9 M in 2024, whereas Debt To Equity is likely to drop 1.17 in 2024. At this time, Purecycle Technologies' Average Payables is comparatively stable compared to the past year. Capex To Operating Cash Flow is likely to gain to 1.76 in 2024, despite the fact that Free Cash Flow Yield is likely to grow to (0.36).
At this time, it appears that Purecycle Technologies is an unlikely manipulator. The earnings manipulation may begin if Purecycle Technologies' 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 Purecycle Technologies 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 Purecycle Technologies' 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.
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 Purecycle Technologies' 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.
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 Purecycle Technologies' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Purecycle Technologies in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Purecycle Technologies' degree of accounting gimmicks and manipulations.
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.
Reconciled Depreciation
19.37 Million
At this time, Purecycle Technologies' Reconciled Depreciation is comparatively stable compared to the past year.
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 Purecycle Technologies. 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.
The Macroaxis Fundamental Analysis modules help investors analyze Purecycle Technologies Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Purecycle Technologies using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Purecycle Technologies Holdings 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.
Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Purecycle Technologies using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.
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When determining whether Purecycle Technologies is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Purecycle Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Purecycle Technologies Holdings Stock. Highlighted below are key reports to facilitate an investment decision about Purecycle Technologies Holdings Stock:
For more information on how to buy Purecycle Stock please use our How to Invest in Purecycle Technologies guide.You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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When running Purecycle Technologies' price analysis, check to measure Purecycle Technologies' 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 Purecycle Technologies is operating at the current time. Most of Purecycle Technologies' value examination focuses on studying past and present price action to predict the probability of Purecycle Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Purecycle Technologies' price. Additionally, you may evaluate how the addition of Purecycle Technologies to your portfolios can decrease your overall portfolio volatility.
Use Commodity Channel Index to analyze current equity momentum
Is Purecycle Technologies' 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 Purecycle Technologies. If investors know Purecycle 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 Purecycle Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.62)
Return On Assets
(0.07)
Return On Equity
(0.22)
The market value of Purecycle Technologies is measured differently than its book value, which is the value of Purecycle that is recorded on the company's balance sheet. Investors also form their own opinion of Purecycle Technologies' value that differs from its market value or its book value, called intrinsic value, which is Purecycle Technologies' 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 Purecycle Technologies' market value can be influenced by many factors that don't directly affect Purecycle Technologies' 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 Purecycle Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Purecycle Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Purecycle Technologies' 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.
