Cumulus Media Class Stock Beneish M Score

CMLS Stock  USD 2.73  0.05  1.87%   
This module uses fundamental data of Cumulus Media to approximate the value of its Beneish M Score. Cumulus Media 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 Cumulus Media Piotroski F Score and Cumulus Media Altman Z Score analysis.
  
At this time, Cumulus Media's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 1.2 B in 2024, whereas Long Term Debt Total is likely to drop slightly above 610.9 M in 2024. At this time, Cumulus Media's PFCF Ratio is comparatively stable compared to the past year. EV To Operating Cash Flow is likely to gain to 34.56 in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024.
At this time, it appears that Cumulus Media Class is an unlikely manipulator. The earnings manipulation may begin if Cumulus Media'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 Cumulus Media 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 Cumulus Media'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.
-2.72
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.01

Focus
Asset Quality

1.2

Focus
Expense Coverage

1.15

Focus
Gross Margin Strengs

0.64

Focus
Accruals Factor

1.15

Focus
Depreciation Resistance

0.91

Focus
Net Sales Growth

0.83

Focus
Financial Leverage Condition

0.9

Focus

Cumulus Media 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 Cumulus Media'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 Receivables152.3 M182.2 M
Fairly Down
Very volatile
Total Revenue699.3 M844.5 M
Significantly Down
Pretty Stable
Total Assets1.9 B1.4 B
Significantly Up
Slightly volatile
Total Current Assets260.3 M286.9 M
Moderately Down
Pretty Stable
Non Current Assets Total1.7 B1.2 B
Way Up
Slightly volatile
Property Plant Equipment162.3 M218.6 M
Way Down
Very volatile
Depreciation And Amortization55.2 M65.3 M
Fairly Down
Pretty Stable
Selling General Administrative49.7 M52.3 M
Notably Down
Slightly volatile
Total Current Liabilities97.7 M143.7 M
Way Down
Very volatile
Non Current Liabilities Total1.5 BB
Way Up
Slightly volatile
Net Debt1.2 B950.1 M
Significantly Up
Slightly volatile
Short Term Debt35.3 M37.2 M
Notably Down
Very volatile
Long Term Debt1.2 B672.4 M
Way Up
Slightly volatile
Short Term Investments7.8 M10.3 M
Way Down
Pretty Stable
Long Term Investments13.8 M15.6 M
Fairly Down
Slightly volatile
Gross Profit Margin0.340.528
Way Down
Slightly volatile

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

About Cumulus Media 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

55.2 Million

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

Cumulus Media 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 Cumulus Media. 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 Receivables245.4M203.3M198.8M212.3M182.2M152.3M
Total Revenue1.1B816.2M916.5M953.5M844.5M699.3M
Total Assets1.8B1.9B1.7B1.6B1.4B1.9B
Total Current Assets380.7M503.0M406.5M345.3M286.9M260.3M
Net Debt1.1B858.5M775.9M754.9M950.1M1.2B
Short Term Debt39.7M33.4M28.4M28.0M37.2M35.3M
Long Term Debt2.0B507.4M798.9M714.5M672.4M1.2B
Operating Income166.2M21.4M69.1M79.8M36.0M37.8M

About Cumulus Media Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Cumulus Media Class's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Cumulus Media using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Cumulus Media Class 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 Cumulus Media 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, Cumulus Media's short interest history, or implied volatility extrapolated from Cumulus Media options trading.

Pair Trading with Cumulus Media

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 Cumulus Media 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 Cumulus Media will appreciate offsetting losses from the drop in the long position's value.

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The ability to find closely correlated positions to Cumulus Media could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cumulus Media 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 Cumulus Media - 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 Cumulus Media Class to buy it.
The correlation of Cumulus Media 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 Cumulus Media moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cumulus Media Class 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 Cumulus Media 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.
Pair CorrelationCorrelation Matching
When determining whether Cumulus Media Class is a strong investment it is important to analyze Cumulus Media's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cumulus Media's future performance. For an informed investment choice regarding Cumulus Stock, refer to the following important reports:
Check out Cumulus Media Piotroski F Score and Cumulus Media Altman Z Score analysis.
You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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When running Cumulus Media's price analysis, check to measure Cumulus Media'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 Cumulus Media is operating at the current time. Most of Cumulus Media's value examination focuses on studying past and present price action to predict the probability of Cumulus Media's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cumulus Media's price. Additionally, you may evaluate how the addition of Cumulus Media to your portfolios can decrease your overall portfolio volatility.
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Is Cumulus Media'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 Cumulus Media. If investors know Cumulus 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 Cumulus Media 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
(0.64)
Earnings Share
(6.83)
Revenue Per Share
48.905
Quarterly Revenue Growth
(0.12)
Return On Assets
0.0097
The market value of Cumulus Media Class is measured differently than its book value, which is the value of Cumulus that is recorded on the company's balance sheet. Investors also form their own opinion of Cumulus Media's value that differs from its market value or its book value, called intrinsic value, which is Cumulus Media'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 Cumulus Media's market value can be influenced by many factors that don't directly affect Cumulus Media'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 Cumulus Media's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cumulus Media is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cumulus Media'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.