Cpi Card Group Stock Beneish M Score

PMTS Stock  USD 34.30  0.60  1.78%   
This module uses fundamental data of CPI Card to approximate the value of its Beneish M Score. CPI Card 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 CPI Card Piotroski F Score and CPI Card Altman Z Score analysis.
  
At this time, CPI Card's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 279.7 M in 2024, whereas Short and Long Term Debt is likely to drop slightly above 8.8 M in 2024. At this time, CPI Card's Cash Per Share is comparatively stable compared to the past year. POCF Ratio is likely to gain to 11.58 in 2024, whereas Days Sales Outstanding is likely to drop 48.52 in 2024.
At this time, it appears that CPI Card Group is an unlikely manipulator. The earnings manipulation may begin if CPI Card'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 CPI Card 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 CPI Card'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.
-2.3
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.04

Focus
Asset Quality

1.63

Focus
Expense Coverage

1.13

Focus
Gross Margin Strengs

0.74

Focus
Accruals Factor

1.13

Focus
Depreciation Resistance

0.77

Focus
Net Sales Growth

0.77

Focus
Financial Leverage Condition

1.13

Focus

CPI Card 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 CPI Card'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 Receivables59 M73.7 M
Significantly Down
Slightly volatile
Total Revenue341 M444.5 M
Way Down
Slightly volatile
Total Assets276.3 M293.7 M
Notably Down
Slightly volatile
Total Current Assets124.5 M165.4 M
Way Down
Slightly volatile
Non Current Assets Total110.3 M128.3 M
Fairly Down
Very volatile
Property Plant Equipment51.2 M65.8 M
Significantly Down
Slightly volatile
Depreciation And Amortization17.5 M15.9 M
Significantly Up
Slightly volatile
Selling General Administrative76.1 M88.2 M
Fairly Down
Slightly volatile
Total Current Liabilities50.4 M49.4 M
Fairly Up
Slightly volatile
Non Current Liabilities Total331.4 M296.2 M
Moderately Up
Slightly volatile
Net Debt279.7 M259.9 M
Significantly Up
Slightly volatile
Short Term DebtM7.3 M
Notably Down
Very volatile
Long Term Debt316.3 M265 M
Fairly Up
Slightly volatile
Total Cash From Operating Activities19.5 M34 M
Way Down
Very volatile
Gross Profit Margin0.260.3498
Way Down
Slightly volatile

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

About CPI Card 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

17.49 Million

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

CPI Card 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 CPI Card. 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 Receivables47.0M65.1M61.5M80.6M73.7M59.0M
Total Revenue278.1M312.2M375.1M475.7M444.5M341.0M
Total Assets213.5M266.2M268.1M296.7M293.7M276.3M
Total Current Assets92.2M152.5M145.7M167.6M165.4M124.5M
Net Debt289.1M279.1M282.9M280.2M259.9M279.7M
Short Term Debt4.5M12.4M4.1M5.7M7.3M7.0M
Long Term Debt307.8M328.7M303.6M285.5M265.0M316.3M
Operating Income19.5M38.4M59.5M79.1M61.6M38.7M
Investments(2.6M)(7.1M)(9.9M)(17.8M)(9.3M)(9.8M)

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

About CPI Card Fundamental Analysis

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

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Additional Tools for CPI Stock Analysis

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