Platinum Group Metals Stock Beneish M Score

PLG Stock  USD 1.17  0.05  4.10%   
This module uses fundamental data of Platinum Group to approximate the value of its Beneish M Score. Platinum Group 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 Platinum Group Piotroski F Score and Platinum Group Altman Z Score analysis.
  
At this time, Platinum Group's Debt To Equity is most likely to increase significantly in the upcoming years. The Platinum Group's current Debt To Assets is estimated to increase to 0.56, while Short and Long Term Debt Total is projected to decrease to roughly 249.8 K. At this time, Platinum Group's Capex To Depreciation is most likely to decrease significantly in the upcoming years. The Platinum Group's current PB Ratio is estimated to increase to 4.34, while Free Cash Flow Yield is projected to decrease to (0.06).
At this time, it appears that Platinum Group Metals is an unlikely manipulator. The earnings manipulation may begin if Platinum Group'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 Platinum Group 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 Platinum Group'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.
-4.35
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

N/A

Focus
Asset Quality

1.08

Focus
Expense Coverage

N/A

Focus
Gross Margin Strengs

1.03

Focus
Accruals Factor

N/A

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

N/A

Focus
Financial Leverage Condition

1.14

Focus

Platinum Group 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 Platinum Group'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 Receivables213.8 K225 K
Notably Down
Slightly volatile
Total Assets49.5 M52.1 M
Notably Down
Slightly volatile
Total Current AssetsM4.2 M
Notably Down
Slightly volatile
Non Current Assets Total45.5 M47.9 M
Notably Down
Slightly volatile
Property Plant Equipment44.5 M46.8 M
Notably Down
Slightly volatile
Depreciation And Amortization90.7 K95.5 K
Notably Down
Slightly volatile
Selling General AdministrativeM4.7 M
Significantly Up
Very volatile
Total Current Liabilities859.8 K905 K
Notably Down
Slightly volatile
Non Current Liabilities Total1.4 M1.4 M
Notably Down
Pretty Stable

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

About Platinum Group 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

6.07 Million

At this time, Platinum Group's Other Operating Expenses is most likely to increase significantly in the upcoming years.

Platinum Group 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 Platinum Group. 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 Receivables218K476K382K215.2K225K213.8K
Total Assets37.4M51.2M53.7M50.0M52.1M49.5M
Total Current Assets1.9M6.6M12.8M7.6M4.2M4.0M
Non Current Assets Total35.5M44.6M40.9M42.5M47.9M45.5M
Property Plant Equipment37.2M35.4M44.4M40.7M46.8M44.5M
Depreciation And Amortization182.8K122.5K88.1K83K95.5K90.7K
Selling General Administrative5.1M7.4M6.4M5.8M4.7M6.0M
Total Current Liabilities4.3M30.3M1.1M1.4M905K859.8K
Non Current Liabilities Total37.3M1.5M1.0M1.3M1.4M1.4M
Net Debt35.4M21.9M(12.3M)(6.7M)(3.4M)(3.6M)
Operating Income(5.5M)(7.7M)(6.6M)(5.9M)(4.8M)(5.0M)
Total Cash From Operating Activities(3.1M)(8.1M)(4.5M)(3.8M)(2.4M)(2.6M)
Investments(5.4M)(350K)(250K)(5.1M)(3.7M)(3.9M)
Long Term Investments65K108K170K190K218.5K341.9K

About Platinum Group Fundamental Analysis

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

Currently Active Assets on Macroaxis

When determining whether Platinum Group Metals is a strong investment it is important to analyze Platinum Group'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 Platinum Group's future performance. For an informed investment choice regarding Platinum Stock, refer to the following important reports:
Check out Platinum Group Piotroski F Score and Platinum Group Altman Z Score analysis.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Is Precious Metals & Minerals 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 Platinum Group. If investors know Platinum 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 Platinum Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.05)
Return On Assets
(0.11)
Return On Equity
(0.12)
The market value of Platinum Group Metals is measured differently than its book value, which is the value of Platinum that is recorded on the company's balance sheet. Investors also form their own opinion of Platinum Group's value that differs from its market value or its book value, called intrinsic value, which is Platinum Group'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 Platinum Group's market value can be influenced by many factors that don't directly affect Platinum Group'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 Platinum Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Platinum Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Platinum Group'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.