Aspen Aerogels Stock Beneish M Score
| ASPN Stock | USD 14.80 0.32 2.21% |
Aspen | Beneish M Score |
At this time, it appears that Aspen Aerogels is an unlikely manipulator. The earnings manipulation may begin if Aspen Aerogels' 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 Aspen Aerogels 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 Aspen Aerogels' 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.
-2.47
Beneish M Score - Unlikely Manipulator
Aspen Aerogels 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 Aspen Aerogels' 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 | 73.5 M | 70 M |
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| Total Revenue | 250.7 M | 238.7 M |
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| Total Assets | 738.2 M | 703 M |
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| Total Current Assets | 279.6 M | 266.3 M |
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| Non Current Assets Total | 458.6 M | 436.7 M |
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| Property Plant Equipment | 313 M | 298.1 M |
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| Depreciation And Amortization | 19.1 M | 18.2 M |
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| Selling General Administrative | 59.6 M | 56.8 M |
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| Total Current Liabilities | 82 M | 78.1 M |
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| Non Current Liabilities Total | 143.7 M | 136.9 M |
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| Short Term Debt | 3.7 M | 3.7 M |
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Aspen Aerogels 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 Aspen Aerogels' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Aspen Aerogels in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Aspen Aerogels' degree of accounting gimmicks and manipulations.
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About Aspen Aerogels 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 And Amortization |
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Aspen Aerogels 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 Aspen Aerogels. 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) | ||
| Net Receivables | 32.3M | 15.7M | 20.4M | 57.4M | 70.0M | 73.5M | |
| Total Revenue | 104.4M | 139.4M | 100.3M | 121.6M | 238.7M | 250.7M | |
| Total Assets | 103.5M | 97.4M | 183.0M | 646.6M | 703.0M | 738.2M | |
| Total Current Assets | 45.8M | 47.1M | 112.2M | 369.7M | 266.3M | 279.6M | |
| Net Debt | 4.8M | (8.2M) | (61.3M) | (154.7M) | (951K) | (998.6K) | |
| Short Term Debt | 4.2M | 3.7M | 4.5M | 2.4M | 3.7M | 3.7M | |
| Operating Income | (33.9M) | (14.2M) | (21.6M) | (40.6M) | (49.2M) | (46.7M) | |
| Investments | (2.1M) | (3.4M) | (13.8M) | 2.7M | (206.3M) | (196.0M) |
Aspen Aerogels 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, Aspen Aerogels' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Aspen Aerogels' managers, analysts, and investors.Environmental | Governance | Social |
About Aspen Aerogels Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Aspen Aerogels's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Aspen Aerogels using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Aspen Aerogels 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 Aspen Aerogels
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 Aspen Aerogels 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 Aspen Aerogels will appreciate offsetting losses from the drop in the long position's value.Moving against Aspen Stock
| 0.87 | AWI | Armstrong World Indu | PairCorr |
| 0.81 | LMB | Limbach Holdings | PairCorr |
| 0.78 | OC | Owens Corning | PairCorr |
| 0.77 | JCI | Johnson Controls Int Fiscal Year End 10th of December 2024 | PairCorr |
| 0.74 | NX | Quanex Building Products Fiscal Year End 12th of December 2024 | PairCorr |
The ability to find closely correlated positions to Aspen Aerogels could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aspen Aerogels 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 Aspen Aerogels - 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 Aspen Aerogels to buy it.
The correlation of Aspen Aerogels 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 Aspen Aerogels moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aspen Aerogels 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 Aspen Aerogels 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 Aspen Aerogels Piotroski F Score and Aspen Aerogels Altman Z Score analysis. To learn how to invest in Aspen Stock, please use our How to Invest in Aspen Aerogels guide.You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Is Oil & Gas Equipment & Services 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 Aspen Aerogels. If investors know Aspen 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 Aspen Aerogels listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 0.02 | Revenue Per Share 5.532 | Quarterly Revenue Growth 0.931 | Return On Assets 0.0433 | Return On Equity 0.0033 |
The market value of Aspen Aerogels is measured differently than its book value, which is the value of Aspen that is recorded on the company's balance sheet. Investors also form their own opinion of Aspen Aerogels' value that differs from its market value or its book value, called intrinsic value, which is Aspen Aerogels' 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 Aspen Aerogels' market value can be influenced by many factors that don't directly affect Aspen Aerogels' 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 Aspen Aerogels' value and its price as these two are different measures arrived at by different means. Investors typically determine if Aspen Aerogels is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aspen Aerogels' 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.