Eagle Point Credit Stock Beneish M Score

ECCF Stock   24.83  0.14  0.56%   
This module uses fundamental data of Eagle Point to approximate the value of its Beneish M Score. Eagle Point 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 Eagle Point Piotroski F Score and Eagle Point Altman Z Score analysis.
  
At this time, Eagle Point's Debt To Equity is most likely to slightly decrease in the upcoming years. The Eagle Point's current Debt To Assets is estimated to increase to 0.29, while Interest Debt Per Share is projected to decrease to 2.69. At this time, Eagle Point's EV To Sales is most likely to drop in the upcoming years. The Eagle Point's current ROIC is estimated to increase to 0.11, while PTB Ratio is projected to decrease to 0.74.
At this time, it appears that Eagle Point Credit is an unlikely manipulator. The earnings manipulation may begin if Eagle Point'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 Eagle Point 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 Eagle Point'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.
-3.62
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

N/A

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.25

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

1.25

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

N/A

Focus

Eagle Point 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 Eagle Point'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
Total Assets823.7 M954.5 M
Fairly Down
Slightly volatile
Selling General AdministrativeM4.5 M
Significantly Up
Slightly volatile
Net Debt115.5 M111.3 M
Sufficiently Up
Slightly volatile
Long Term Investments756.8 M870.7 M
Fairly Down
Slightly volatile
Gross Profit Margin1.11.16
Notably Down
Pretty Stable

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

About Eagle Point 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.

Total Assets

823.7 Million

At this time, Eagle Point's Total Assets are most likely to increase significantly in the upcoming years.

About Eagle Point Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Eagle Point Credit's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Eagle Point using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Eagle Point Credit 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 Eagle Point Credit offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Eagle Point'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 Eagle Point Credit Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Eagle Point Credit Stock:
Check out Eagle Point Piotroski F Score and Eagle Point Altman Z Score analysis.
You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Is Asset Management 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 Eagle Point. If investors know Eagle 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 Eagle Point listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Eagle Point Credit is measured differently than its book value, which is the value of Eagle that is recorded on the company's balance sheet. Investors also form their own opinion of Eagle Point's value that differs from its market value or its book value, called intrinsic value, which is Eagle Point'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 Eagle Point's market value can be influenced by many factors that don't directly affect Eagle Point'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 Eagle Point's value and its price as these two are different measures arrived at by different means. Investors typically determine if Eagle Point is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eagle Point'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.