Universal Security Instruments Stock Beneish M Score

UUU Stock  USD 2.21  0.01  0.45%   
This module uses fundamental data of Universal Security to approximate the value of its Beneish M Score. Universal Security 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 Universal Security Piotroski F Score and Universal Security Altman Z Score analysis.
  
At this time, Universal Security's Cash Flow To Debt Ratio is comparatively stable compared to the past year. At this time, Universal Security's POCF Ratio is comparatively stable compared to the past year. Capex To Operating Cash Flow is likely to gain to 0.000008 in 2024, whereas Book Value Per Share is likely to drop 2.04 in 2024.
At this time, Universal Security's M Score is unavailable. The earnings manipulation may begin if Universal Security'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 Universal Security 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 Universal Security'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.
-5.5
Beneish M Score - Unavailable
Elasticity of Receivables

0.94

Focus
Asset Quality

-4.08

Focus
Expense Coverage

1.15

Focus
Gross Margin Strengs

0.65

Focus
Accruals Factor

1.15

Focus
Depreciation Resistance

0.88

Focus
Net Sales Growth

0.76

Focus
Financial Leverage Condition

0.86

Focus

Universal Security 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 Universal Security'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 Receivables2.4 M3.3 M
Way Down
Pretty Stable
Total Revenue15.1 M19.9 M
Way Down
Slightly volatile
Total Assets8.1 M8.5 M
Notably Down
Slightly volatile
Total Current Assets7.5 M8.4 M
Moderately Down
Slightly volatile
Non Current Assets Total181.4 K191 K
Notably Down
Slightly volatile
Property Plant Equipment246.8 K286.8 K
Fairly Down
Slightly volatile
Selling General AdministrativeM5.6 M
Fairly Down
Slightly volatile
Total Current Liabilities2.9 M3.6 M
Significantly Down
Slightly volatile
Non Current Liabilities Total12.7 K13.3 K
Notably Down
Very volatile
Short Term Debt1.3 M927.6 K
Significantly Up
Slightly volatile
Gross Profit Margin0.190.2918
Way Down
Very volatile

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

About Universal Security 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.

Other Operating Expenses

15.34 Million

At this time, Universal Security's Other Operating Expenses is comparatively stable compared to the past year.

Universal Security 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 Universal Security. 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 Receivables2.4M2.6M3.8M3.7M3.3M2.4M
Total Revenue14.8M17.5M19.5M22.2M19.9M15.1M
Total Assets8.2M7.5M11.5M8.4M8.5M8.1M
Total Current Assets7.8M7.3M11.0M8.0M8.4M7.5M
Net Debt1.8M29.4K3.3M1.6M875.8K734.3K
Short Term Debt1.7M190.0K3.4M302.5K927.6K1.3M
Operating Income(1.6M)133.8K69.7K972.6K(264.8K)(278.0K)

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

About Universal Security Fundamental Analysis

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

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