Chatham Lodging Trust Stock Beneish M Score

CLDT Stock  USD 9.20  0.01  0.11%   
This module uses fundamental data of Chatham Lodging to approximate the value of its Beneish M Score. Chatham Lodging 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 Chatham Lodging Piotroski F Score and Chatham Lodging Altman Z Score analysis.
  
At this time, Chatham Lodging's Debt Ratio is comparatively stable compared to the past year. At this time, Chatham Lodging's POCF Ratio is comparatively stable compared to the past year. Payout Ratio is likely to gain to 8.80 in 2024, whereas Book Value Per Share is likely to drop 13.49 in 2024.
At this time, it appears that Chatham Lodging Trust is an unlikely manipulator. The earnings manipulation may begin if Chatham Lodging'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 Chatham Lodging 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 Chatham Lodging'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.
-3.36
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.29

Focus
Asset Quality

-0.0921

Focus
Expense Coverage

1.56

Focus
Gross Margin Strengs

0.9

Focus
Accruals Factor

1.56

Focus
Depreciation Resistance

0.53

Focus
Net Sales Growth

0.67

Focus
Financial Leverage Condition

1.31

Focus

Chatham Lodging 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 Chatham Lodging'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 ValueLast YearChange From Last Year 10 Year Trend
Net Receivables3.8 M4.4 M
Fairly Down
Slightly volatile
Total Revenue209.4 M311.1 M
Way Down
Slightly volatile
Total Assets1.1 B1.3 B
Significantly Down
Slightly volatile
Total Current Assets94.6 M90.1 M
Sufficiently Up
Slightly volatile
Non Current Assets Total1.2 B1.3 B
Significantly Down
Slightly volatile
Property Plant Equipment976.8 M1.5 B
Way Down
Slightly volatile
Depreciation And Amortization77.1 M58.3 M
Significantly Up
Slightly volatile
Selling General Administrative30.3 M28.9 M
Sufficiently Up
Slightly volatile
Total Current Liabilities31.1 M34.7 M
Moderately Down
Slightly volatile
Non Current Liabilities Total507.4 M504.9 M
Slightly Up
Slightly volatile
Short Term Debt23.4 M24.6 M
Notably Down
Very volatile
Long Term Debt392 M484.1 M
Significantly Down
Slightly volatile
Short Term Investments874 K920 K
Notably Down
Slightly volatile
Gross Profit Margin0.440.4868
Moderately Down
Pretty Stable

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

About Chatham Lodging 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

77.14 Million

At this time, Chatham Lodging's Depreciation And Amortization is comparatively stable compared to the past year.

Chatham Lodging 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 Chatham Lodging. 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 Receivables4.6M1.7M3.0M5.2M4.4M3.8M
Total Revenue328.3M144.9M204.0M294.9M311.1M209.4M
Total Assets1.4B1.4B1.4B1.3B1.3B1.1B
Total Current Assets27.4M35.4M35.7M50.3M90.1M94.6M
Net Debt602.6M610.9M547.8M465.7M436.8M455.4M
Short Term Debt90M137.4M70M118.0M24.6M23.4M
Long Term Debt495.5M460.1M439.3M469.9M484.1M392.0M
Operating Income53.4M(43.1M)(12.5M)36.5M28.6M24.5M
Investments2.7M1.5M2.8M30.0M(24.0M)(22.8M)

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

About Chatham Lodging Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Chatham Lodging Trust's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Chatham Lodging using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Chatham Lodging Trust 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.

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Additional Tools for Chatham Stock Analysis

When running Chatham Lodging's price analysis, check to measure Chatham Lodging'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 Chatham Lodging is operating at the current time. Most of Chatham Lodging's value examination focuses on studying past and present price action to predict the probability of Chatham Lodging's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chatham Lodging's price. Additionally, you may evaluate how the addition of Chatham Lodging to your portfolios can decrease your overall portfolio volatility.