Applied Dna Sciences Stock Beneish M Score
| APDN Stock | USD 0.16 0.01 5.88% |
Applied | Beneish M Score |
At this time, it appears that Applied DNA Sciences is an unlikely manipulator. The earnings manipulation may begin if Applied DNA'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 Applied DNA 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 Applied DNA'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.
-2.93
Beneish M Score - Unlikely Manipulator
Applied DNA 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 Applied DNA'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 | 279.1 K | 293.8 K |
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| Total Revenue | 16.1 M | 15.4 M |
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| Total Assets | 16.5 M | 15.7 M |
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| Total Current Assets | 5 M | 9.3 M |
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| Non Current Assets Total | 6.7 M | 6.4 M |
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| Property Plant Equipment | 2.7 M | 2.6 M |
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| Selling General Administrative | 10 M | 11.5 M |
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| Total Current Liabilities | 3.9 M | 3.3 M |
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| Non Current Liabilities Total | 7.2 M | 6.8 M |
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| Gross Profit Margin | 0.74 | 0.48 |
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Applied DNA Sciences 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 Applied DNA's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Applied DNA in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Applied DNA's degree of accounting gimmicks and manipulations.
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About Applied DNA 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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Applied DNA 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 Applied DNA. 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 | 194.3K | 2.8M | 3.1M | 255.5K | 293.8K | 279.1K | |
| Total Revenue | 1.9M | 9.0M | 18.2M | 13.4M | 15.4M | 16.1M | |
| Total Assets | 11.3M | 14.4M | 22.3M | 13.7M | 15.7M | 16.5M | |
| Total Current Assets | 9.1M | 11.3M | 19.9M | 8.1M | 9.3M | 5.0M | |
| Net Debt | (5.4M) | (6.6M) | (15.2M) | (5.9M) | (5.3M) | (5.1M) | |
| Operating Income | (12.5M) | (12.3M) | (14.0M) | (11.0M) | (9.9M) | (10.4M) | |
| Investments | (1.1M) | (2.5M) | (489.6K) | (1.1M) | (986.2K) | (1.0M) | |
| Gross Profit Margin | 0.63 | 0.55 | 0.28 | 0.41 | 0.48 | 0.74 |
About Applied DNA Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Applied DNA Sciences's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Applied DNA using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Applied DNA Sciences 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.
Pair Trading with Applied DNA
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 Applied DNA 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 Applied DNA will appreciate offsetting losses from the drop in the long position's value.Moving against Applied Stock
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| 0.82 | AA | Alcoa Corp Fiscal Year End 15th of January 2025 | PairCorr |
| 0.82 | HD | Home Depot | PairCorr |
| 0.78 | AXP | American Express Fiscal Year End 24th of January 2025 | PairCorr |
The ability to find closely correlated positions to Applied DNA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Applied DNA 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 Applied DNA - 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 Applied DNA Sciences to buy it.
The correlation of Applied DNA 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 Applied DNA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Applied DNA Sciences 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 Applied DNA 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 Applied DNA Piotroski F Score and Applied DNA Altman Z Score analysis. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Is Electronic Equipment, Instruments & Components 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 Applied DNA. If investors know Applied 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 Applied DNA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (7.73) | Revenue Per Share 2.202 | Quarterly Revenue Growth (0.73) | Return On Assets (0.57) | Return On Equity (0.76) |
The market value of Applied DNA Sciences is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied DNA's value that differs from its market value or its book value, called intrinsic value, which is Applied DNA'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 Applied DNA's market value can be influenced by many factors that don't directly affect Applied DNA'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 Applied DNA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Applied DNA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied DNA'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.