Commercial Vehicle Group Stock Beneish M Score

CVGI Stock  USD 2.41  0.06  2.55%   
This module uses fundamental data of Commercial Vehicle to approximate the value of its Beneish M Score. Commercial Vehicle 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 Commercial Vehicle Piotroski F Score and Commercial Vehicle Altman Z Score analysis.
  
As of now, Commercial Vehicle's Long Term Debt Total is decreasing as compared to previous years. The Commercial Vehicle's current Debt To Equity is estimated to increase to 0.86, while Short Term Debt is projected to decrease to under 16.8 M. As of now, Commercial Vehicle's Stock Based Compensation To Revenue is increasing as compared to previous years. The Commercial Vehicle's current PB Ratio is estimated to increase to 1.41, while Days Sales Outstanding is projected to decrease to 43.39.
At this time, it appears that Commercial Vehicle is an unlikely manipulator. The earnings manipulation may begin if Commercial Vehicle'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 Commercial Vehicle 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 Commercial Vehicle'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.
-2.23
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.18

Focus
Asset Quality

1.21

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.03

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.96

Focus
Net Sales Growth

0.77

Focus
Financial Leverage Condition

1.08

Focus

Commercial Vehicle 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 Commercial Vehicle'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 Receivables121.5 M133.9 M
Moderately Down
Slightly volatile
Total Revenue763.5 M994.7 M
Way Down
Slightly volatile
Total Assets445.5 M483.2 M
Significantly Down
Slightly volatile
Total Current Assets280.1 M327.7 M
Fairly Down
Slightly volatile
Non Current Assets Total123.7 M155.5 M
Significantly Down
Pretty Stable
Property Plant Equipment77.8 M78 M
Slightly Down
Slightly volatile
Depreciation And Amortization18.5 M17.6 M
Sufficiently Up
Slightly volatile
Selling General Administrative62 M80.9 M
Way Down
Slightly volatile
Total Current Liabilities125.2 M145.2 M
Fairly Down
Slightly volatile
Non Current Liabilities Total221.2 M165.1 M
Significantly Up
Slightly volatile
Net Debt154.2 M135.8 M
Moderately Up
Pretty Stable
Short Term Debt16.8 M22.9 M
Way Down
Slightly volatile
Long Term Debt190.2 M126.2 M
Way Up
Slightly volatile
Long Term Investments128.2 K135 K
Notably Down
Slightly volatile
Gross Profit Margin0.140.1357
Sufficiently Up
Slightly volatile

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

About Commercial Vehicle 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.

Accumulated Depreciation

(135.87 Million)

As of now, Commercial Vehicle's Accumulated Depreciation is decreasing as compared to previous years.

Commercial Vehicle 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 Commercial Vehicle. 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 Receivables115.1M151.1M174.5M152.6M133.9M121.5M
Total Revenue901.2M717.7M971.6M981.6M994.7M763.5M
Total Assets435.8M454.4M507.7M470.3M483.2M445.5M
Total Current Assets256.0M310.5M370.7M339.6M327.7M280.1M
Net Debt153.9M129.2M187.6M147.5M135.8M154.2M
Short Term Debt10.9M12.0M19.1M18.5M22.9M16.8M
Long Term Debt153.1M144.1M185.6M141.5M126.2M190.2M
Operating Income40.6M5.1M32.0M(8.5M)48.1M50.5M
Investments(58.0M)(6.4M)(17.6M)(19.7M)(22.4M)(23.5M)

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

About Commercial Vehicle Fundamental Analysis

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

Currently Active Assets on Macroaxis

When determining whether Commercial Vehicle offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Commercial Vehicle's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Commercial Vehicle Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Commercial Vehicle Group Stock:
Check out Commercial Vehicle Piotroski F Score and Commercial Vehicle Altman Z Score analysis.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Is Construction Machinery & Heavy Transportation Equipment 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 Commercial Vehicle. If investors know Commercial 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 Commercial Vehicle 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
0.286
Earnings Share
0.82
Revenue Per Share
27.395
Quarterly Revenue Growth
(0.15)
Return On Assets
0.0346
The market value of Commercial Vehicle is measured differently than its book value, which is the value of Commercial that is recorded on the company's balance sheet. Investors also form their own opinion of Commercial Vehicle's value that differs from its market value or its book value, called intrinsic value, which is Commercial Vehicle'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 Commercial Vehicle's market value can be influenced by many factors that don't directly affect Commercial Vehicle'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 Commercial Vehicle's value and its price as these two are different measures arrived at by different means. Investors typically determine if Commercial Vehicle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Commercial Vehicle'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.