Chatham Lodging Trust Stock Beneish M Score
| CLDT Stock | USD 9.17 0.16 1.71% |
Chatham | Beneish M Score |
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.
-3.05
Beneish M Score - Unlikely Manipulator
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 Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Net Receivables | 3.8 M | 4.4 M |
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| Total Revenue | 209.4 M | 311.1 M |
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| Total Assets | 1.1 B | 1.3 B |
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| Total Current Assets | 94.6 M | 90.1 M |
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| Non Current Assets Total | 1.2 B | 1.3 B |
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| Property Plant Equipment | 976.8 M | 1.5 B |
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| Depreciation And Amortization | 39.4 M | 58 M |
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| Selling General Administrative | 12.2 M | 17.5 M |
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| Total Current Liabilities | 31.1 M | 34.7 M |
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| Non Current Liabilities Total | 507.4 M | 504.9 M |
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| Short Term Debt | 23.4 M | 24.6 M |
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| Long Term Debt | 392 M | 484.1 M |
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| Short Term Investments | 874 K | 920 K |
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| Gross Profit Margin | 0.43 | 0.3566 |
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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.
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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 |
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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.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Net Receivables | 4.6M | 1.7M | 3.0M | 5.2M | 4.4M | 3.8M | |
| Total Revenue | 328.3M | 144.9M | 204.0M | 294.9M | 311.1M | 209.4M | |
| Total Assets | 1.4B | 1.4B | 1.4B | 1.3B | 1.3B | 1.1B | |
| Total Current Assets | 27.4M | 35.4M | 35.7M | 50.3M | 90.1M | 94.6M | |
| Net Debt | 602.6M | 610.9M | 547.8M | 465.7M | 436.8M | 455.4M | |
| Short Term Debt | 90M | 135.3M | 70M | 118.0M | 24.6M | 23.4M | |
| Long Term Debt | 495.5M | 460.1M | 439.3M | 469.9M | 484.1M | 392.0M | |
| Operating Income | 53.4M | (43.1M) | (12.5M) | 36.5M | 28.6M | 24.5M | |
| Investments | 2.7M | 1.5M | 2.8M | 30.0M | (24.0M) | (22.8M) |
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.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Chatham Lodging in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Chatham Lodging's short interest history, or implied volatility extrapolated from Chatham Lodging options trading.
Pair Trading with Chatham Lodging
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Chatham Lodging position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chatham Lodging will appreciate offsetting losses from the drop in the long position's value.Moving together with Chatham Stock
| 0.75 | FR | First Industrial Realty | PairCorr |
Moving against Chatham Stock
| 0.57 | EPRT | Essential Properties | PairCorr |
| 0.52 | WELL | Welltower Financial Report 7th of May 2024 | PairCorr |
| 0.51 | PK | Park Hotels Resorts Earnings Call Today | PairCorr |
The ability to find closely correlated positions to Chatham Lodging could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chatham Lodging when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Chatham Lodging - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Chatham Lodging Trust to buy it.
The correlation of Chatham Lodging is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Chatham Lodging moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chatham Lodging Trust moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Chatham Lodging can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Chatham Lodging Piotroski F Score and Chatham Lodging Altman Z Score analysis. Note that the Chatham Lodging Trust information on this page should be used as a complementary analysis to other Chatham Lodging's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Complementary 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.
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Is Chatham Lodging's industry 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 Chatham Lodging. If investors know Chatham 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 Chatham Lodging 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 (0.48) | Dividend Share 0.28 | Earnings Share (0.11) | Revenue Per Share 6.343 | Quarterly Revenue Growth 0.029 |
The market value of Chatham Lodging Trust is measured differently than its book value, which is the value of Chatham that is recorded on the company's balance sheet. Investors also form their own opinion of Chatham Lodging's value that differs from its market value or its book value, called intrinsic value, which is Chatham Lodging'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 Chatham Lodging's market value can be influenced by many factors that don't directly affect Chatham Lodging'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 Chatham Lodging's value and its price as these two are different measures arrived at by different means. Investors typically determine if Chatham Lodging is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chatham Lodging'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.