Aware Inc Stock Beneish M Score

AWRE Stock  USD 1.50  0.01  0.66%   
This module uses fundamental data of Aware to approximate the value of its Beneish M Score. Aware 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 Aware Piotroski F Score and Aware Altman Z Score analysis.
  
At present, Aware's Interest Debt Per Share is projected to increase slightly based on the last few years of reporting. The current year's Cash Flow To Debt Ratio is expected to grow to 3.00, whereas Short Term Debt is forecasted to decline to about 674.3 K. At present, Aware's Free Cash Flow Yield is projected to slightly decrease based on the last few years of reporting. The current year's Operating Cash Flow Per Share is expected to grow to 0.09, whereas PTB Ratio is forecasted to decline to 0.97.
At this time, it appears that Aware Inc is an unlikely manipulator. The earnings manipulation may begin if Aware'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 Aware 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 Aware'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.
-3.32
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.05

Focus
Asset Quality

0.66

Focus
Expense Coverage

0.74

Focus
Gross Margin Strengs

0.69

Focus
Accruals Factor

0.74

Focus
Depreciation Resistance

0.96

Focus
Net Sales Growth

1.07

Focus
Financial Leverage Condition

0.79

Focus

Aware 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 Aware'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 Receivables4.4 M3.9 M
Moderately Up
Slightly volatile
Total Revenue19.6 M18.2 M
Notably Up
Very volatile
Total Assets61.5 M46.3 M
Significantly Up
Very volatile
Total Current Assets51.5 M35.8 M
Way Up
Pretty Stable
Non Current Assets Total7.3 M10.5 M
Way Down
Slightly volatile
Property Plant Equipment5.3 M4.7 M
Significantly Up
Slightly volatile
Depreciation And Amortization669.8 K578 K
Fairly Up
Slightly volatile
Selling General Administrative5.2 M6.5 M
Significantly Down
Slightly volatile
Total Current Liabilities7.9 M7.5 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total4.7 M4.4 M
Sufficiently Up
Slightly volatile
Short Term Debt674.3 K1.3 M
Way Down
Slightly volatile
Gross Profit Margin0.640.9302
Way Down
Slightly volatile

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

About Aware 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

669,806

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

Aware 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 Aware. 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 Receivables5.8M4.5M8.3M7.6M3.9M4.4M
Total Revenue12.2M11.3M16.9M16.0M18.2M19.6M
Total Assets57.6M51.6M48.4M51.2M46.3M61.5M
Total Current Assets53.8M43.7M38.2M36.6M35.8M51.5M
Net Debt(47.7M)(38.6M)(30.0M)(6.8M)(5.5M)(5.8M)
Operating Income(4.2M)(9.4M)(6.1M)(7.9M)(8.5M)(8.1M)
Investments(111K)(2.9M)(2.5M)(12.0M)(3.1M)(3.0M)

About Aware Fundamental Analysis

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

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether Aware Inc is a strong investment it is important to analyze Aware'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 Aware's future performance. For an informed investment choice regarding Aware Stock, refer to the following important reports:
Check out Aware Piotroski F Score and Aware Altman Z Score analysis.
You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Is Application Software 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 Aware. If investors know Aware 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 Aware 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
(0.58)
Earnings Share
(0.35)
Revenue Per Share
0.804
Quarterly Revenue Growth
(0.40)
Return On Assets
(0.08)
The market value of Aware Inc is measured differently than its book value, which is the value of Aware that is recorded on the company's balance sheet. Investors also form their own opinion of Aware's value that differs from its market value or its book value, called intrinsic value, which is Aware'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 Aware's market value can be influenced by many factors that don't directly affect Aware'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 Aware's value and its price as these two are different measures arrived at by different means. Investors typically determine if Aware is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aware'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.