Advent Technologies Holdings Stock Beneish M Score

ADN Stock  USD 5.31  0.22  4.32%   
This module uses fundamental data of Advent Technologies to approximate the value of its Beneish M Score. Advent 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 Advent Technologies Piotroski F Score and Advent Technologies Altman Z Score analysis.
  
At this time, Advent Technologies' Short and Long Term Debt Total is very stable compared to the past year. As of the 28th of November 2024, Short Term Debt is likely to grow to about 5.5 M, while Net Debt is likely to drop (19.6 M). At this time, Advent Technologies' Debt To Equity is very stable compared to the past year. As of the 28th of November 2024, Capex Per Share is likely to grow to 2.57, while Price To Sales Ratio is likely to drop 2.50.
At this time, it appears that Advent Technologies is an unlikely manipulator. The earnings manipulation may begin if Advent 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 Advent 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 Advent 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.
-6.98
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.99

Focus
Asset Quality

0.95

Focus
Expense Coverage

0.8

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

0.8

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.96

Focus
Financial Leverage Condition

1.65

Focus

Advent Technologies 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 Advent 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.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables181.4 K191 K
Notably Down
Slightly volatile
Total Revenue4.7 M4.9 M
Sufficiently Down
Slightly volatile
Total Assets33 M34.7 M
Notably Down
Slightly volatile
Total Current Assets8.4 M8.8 M
Notably Down
Slightly volatile
Non Current Assets Total24.6 M25.9 M
Notably Down
Slightly volatile
Property Plant Equipment10.4 M9.9 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization5.1 M4.9 M
Sufficiently Up
Slightly volatile
Selling General Administrative25 M32.5 M
Significantly Down
Slightly volatile
Total Current LiabilitiesM11.9 M
Way Down
Slightly volatile
Non Current Liabilities Total8.9 M9.4 M
Notably Down
Pretty Stable
Short Term Debt5.5 M5.2 M
Sufficiently Up
Slightly volatile
Long Term Debt99.3 K158.5 K
Way Down
Slightly volatile

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

About Advent Technologies 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

65.62 Million

At this time, Advent Technologies' Other Operating Expenses is very stable compared to the past year.

Advent Technologies 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 Advent 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.
201920202021202220232024 (projected)
Net Receivables368.4K1.0M9.2M2.4M191K181.5K
Total Assets226.0M93.9M163.0M89.6M34.7M33.0M
Total Current Assets577.5K582.5K97.4M49.5M8.8M8.4M
Net Debt(20.4K)2.7M(79.6M)(20.8M)(18.7M)(19.6M)
Gross Profit Margin0.29(0.61)0.24(0.0949)(2.76)(2.63)

Advent Technologies 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, Advent Technologies' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Advent Technologies' managers, analysts, and investors.
Environmental
Governance
Social

About Advent Technologies Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Advent Technologies Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Advent Technologies using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Advent 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.
Please read more on our fundamental analysis page.

Pair Trading with Advent Technologies

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 Advent Technologies 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 Advent Technologies will appreciate offsetting losses from the drop in the long position's value.

Moving together with Advent Stock

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Moving against Advent Stock

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The ability to find closely correlated positions to Advent Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Advent Technologies 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 Advent Technologies - 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 Advent Technologies Holdings to buy it.
The correlation of Advent Technologies 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 Advent Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Advent Technologies 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 Advent Technologies 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.
Pair CorrelationCorrelation Matching
When determining whether Advent Technologies is a strong investment it is important to analyze Advent Technologies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Advent Technologies' future performance. For an informed investment choice regarding Advent Stock, refer to the following important reports:
Check out Advent Technologies Piotroski F Score and Advent Technologies Altman Z Score analysis.
You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Is Electric Utilities space 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 Advent Technologies. If investors know Advent 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 Advent 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
(25.90)
Revenue Per Share
2.998
Quarterly Revenue Growth
(0.28)
Return On Assets
(0.74)
Return On Equity
(3.13)
The market value of Advent Technologies is measured differently than its book value, which is the value of Advent that is recorded on the company's balance sheet. Investors also form their own opinion of Advent Technologies' value that differs from its market value or its book value, called intrinsic value, which is Advent 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 Advent Technologies' market value can be influenced by many factors that don't directly affect Advent 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 Advent Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Advent Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Advent 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.