Biohaven Pharmaceutical Holding Stock Beneish M Score

BHVN Stock  USD 46.38  0.90  1.90%   
This module uses fundamental data of Biohaven Pharmaceutical to approximate the value of its Beneish M Score. Biohaven Pharmaceutical 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 Biohaven Pharmaceutical Piotroski F Score and Biohaven Pharmaceutical Altman Z Score analysis.
  
At this time, Biohaven Pharmaceutical's Net Debt To EBITDA is very stable compared to the past year. As of the 29th of November 2024, Debt To Equity is likely to grow to 15.06, though Net Debt is likely to grow to (206.6 M). At this time, Biohaven Pharmaceutical's Price Book Value Ratio is very stable compared to the past year. As of the 29th of November 2024, Ebt Per Ebit is likely to grow to 1.11, while Book Value Per Share is likely to drop 3.63.
At this time, it appears that Biohaven Pharmaceutical is an unlikely manipulator. The earnings manipulation may begin if Biohaven Pharmaceutical'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 Biohaven Pharmaceutical 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 Biohaven Pharmaceutical'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.
-5.43
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

N/A

Focus
Asset Quality

1.97

Focus
Expense Coverage

N/A

Focus
Gross Margin Strengs

0.89

Focus
Accruals Factor

N/A

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

N/A

Focus
Financial Leverage Condition

1.44

Focus

Biohaven Pharmaceutical 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 Biohaven Pharmaceutical'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 Receivables13 M13.6 M
Notably Down
Slightly volatile
Total Assets347.2 M513.2 M
Way Down
Slightly volatile
Total Current Assets306.6 M442.4 M
Way Down
Slightly volatile
Non Current Assets Total40.6 M70.8 M
Way Down
Slightly volatile
Property Plant Equipment63 M60 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization7.3 M6.9 M
Sufficiently Up
Slightly volatile
Selling General Administrative60.1 M56.9 M
Notably Up
Slightly volatile
Total Current Liabilities49.1 M55.4 M
Fairly Down
Slightly volatile
Non Current Liabilities Total55.3 M29.8 M
Way Up
Pretty Stable
Short Term DebtM3.3 M
Way Down
Slightly volatile
Long Term Debt501.4 M564 M
Fairly Down
Slightly volatile
Short Term Investments161.9 M133.4 M
Fairly Up
Slightly volatile
Gross Profit Margin0.640.72
Fairly Down
Slightly volatile

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

About Biohaven Pharmaceutical 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

7.26 Million

At this time, Biohaven Pharmaceutical's Depreciation And Amortization is very stable compared to the past year.

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

About Biohaven Pharmaceutical Fundamental Analysis

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

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 Biohaven Pharmaceutical 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 Biohaven Pharmaceutical will appreciate offsetting losses from the drop in the long position's value.

Moving together with Biohaven Stock

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Moving against Biohaven Stock

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The ability to find closely correlated positions to Biohaven Pharmaceutical could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Biohaven Pharmaceutical 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 Biohaven Pharmaceutical - 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 Biohaven Pharmaceutical Holding to buy it.
The correlation of Biohaven Pharmaceutical 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 Biohaven Pharmaceutical moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Biohaven Pharmaceutical 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 Biohaven Pharmaceutical 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 Biohaven Pharmaceutical offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Biohaven Pharmaceutical'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 Biohaven Pharmaceutical Holding Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Biohaven Pharmaceutical Holding Stock:
Check out Biohaven Pharmaceutical Piotroski F Score and Biohaven Pharmaceutical Altman Z Score analysis.
You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Is Biotechnology 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 Biohaven Pharmaceutical. If investors know Biohaven 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 Biohaven Pharmaceutical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(9.37)
Return On Assets
(1.19)
Return On Equity
(2.65)
The market value of Biohaven Pharmaceutical is measured differently than its book value, which is the value of Biohaven that is recorded on the company's balance sheet. Investors also form their own opinion of Biohaven Pharmaceutical's value that differs from its market value or its book value, called intrinsic value, which is Biohaven Pharmaceutical'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 Biohaven Pharmaceutical's market value can be influenced by many factors that don't directly affect Biohaven Pharmaceutical'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 Biohaven Pharmaceutical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Biohaven Pharmaceutical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Biohaven Pharmaceutical'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.