German American Bancorp Stock Beneish M Score

GABC Stock  USD 40.56  0.55  1.34%   
This module uses fundamental data of German American to approximate the value of its Beneish M Score. German American 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 German American Piotroski F Score and German American Altman Z Score analysis.
  
At present, German American's Long Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Long Term Debt Total is expected to grow to about 70.5 M, whereas Net Debt is forecasted to decline to about 46.2 M. At present, German American's PTB Ratio is projected to increase slightly based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 165.23, whereas Dividend Yield is forecasted to decline to 0.03.
At this time, it appears that German American Bancorp is an unlikely manipulator. The earnings manipulation may begin if German American'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 German American 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 German American'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.
-2.51
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.8

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.9

Focus

German American 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 German American'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 Receivables149.7 M142.6 M
Sufficiently Up
Slightly volatile
Total Revenue263.2 M250.7 M
Sufficiently Up
Slightly volatile
Total Assets6.5 B6.2 B
Sufficiently Up
Slightly volatile
Total Current Assets109.6 M115.3 M
Notably Down
Slightly volatile
Non Current Assets Total560.3 M293.4 M
Way Up
Slightly volatile
Property Plant Equipment135.5 M129.1 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization10 M9.6 M
Sufficiently Up
Slightly volatile
Selling General Administrative90.4 M86.1 M
Sufficiently Up
Slightly volatile
Total Current Liabilities6.7 M7.1 M
Notably Down
Very volatile
Non Current Liabilities Total5.8 B5.5 B
Sufficiently Up
Slightly volatile
Short Term Debt92.3 M92.7 M
Slightly Down
Pretty Stable
Long Term Debt127.9 M125.3 M
Fairly Up
Slightly volatile
Operating Income114.8 M109.3 M
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities112.6 M107.2 M
Sufficiently Up
Slightly volatile
Short Term Investments49.2 M36.5 M
Significantly Up
Slightly volatile
Long Term Investments2.1 B1.6 B
Significantly Up
Slightly volatile
Gross Profit Margin0.740.9219
Significantly Down
Slightly volatile

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

About German American 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

10.04 Million

At present, German American's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

German American 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 German American. 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 Receivables44.2M44.0M43.5M124.0M142.6M149.7M
Total Revenue190.7M209.7M220.3M259.7M250.7M263.2M
Total Assets4.4B5.0B5.6B6.2B6.2B6.5B
Total Current Assets150.1M391.0M441.2M119.6M115.3M109.6M
Net Debt289.7M136.6M105.0M151.6M48.7M46.2M
Short Term Debt124M62.9M70.1M25M92.7M92.3M
Long Term Debt178.6M194.5M152.2M203.8M125.3M127.9M
Operating Income71.2M75.0M102.8M117.5M109.3M114.8M
Investments31.1M(344.4M)(700.9M)(225.0M)(18.6M)(19.6M)

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

About German American Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze German American Bancorp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of German American using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of German American Bancorp 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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When determining whether German American Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of German American'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 German American Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on German American Bancorp Stock:
Check out German American Piotroski F Score and German American Altman Z Score analysis.
You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Regional Banks 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 German American. If investors know German 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 German American 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
(0.02)
Dividend Share
1.08
Earnings Share
2.77
Revenue Per Share
8.341
Quarterly Revenue Growth
0.005
The market value of German American Bancorp is measured differently than its book value, which is the value of German that is recorded on the company's balance sheet. Investors also form their own opinion of German American's value that differs from its market value or its book value, called intrinsic value, which is German American'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 German American's market value can be influenced by many factors that don't directly affect German American'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 German American's value and its price as these two are different measures arrived at by different means. Investors typically determine if German American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, German American'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.