Branchout Food Common Stock Beneish M Score

BOF Stock   1.78  0.04  2.30%   
This module uses fundamental data of BranchOut Food to approximate the value of its Beneish M Score. BranchOut Food 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 BranchOut Food Piotroski F Score and BranchOut Food Altman Z Score analysis.
  
At this time, BranchOut Food's Debt To Equity is most likely to increase slightly in the upcoming years. The BranchOut Food's current Debt Equity Ratio is estimated to increase to 0.13, while Short and Long Term Debt Total is projected to decrease to roughly 348.1 K. At this time, BranchOut Food's Stock Based Compensation To Revenue is most likely to increase slightly in the upcoming years. The BranchOut Food's current PB Ratio is estimated to increase to 1.57, while Days Sales Outstanding is projected to decrease to 79.97.
At this time, it appears that BranchOut Food Common is an unlikely manipulator. The earnings manipulation may begin if BranchOut Food'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 BranchOut Food 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 BranchOut Food'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.
-2.31
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

0.96

Focus
Expense Coverage

0.61

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

0.61

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.97

Focus

BranchOut Food 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 BranchOut Food'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 Receivables687.8 K655.1 K
Sufficiently Up
Slightly volatile
Total RevenueM2.8 M
Sufficiently Up
Slightly volatile
Total Assets3.1 M3.1 M
Fairly Down
Slightly volatile
Total Current Assets1.7 M1.7 M
Fairly Up
Slightly volatile
Non Current Assets Total1.3 M1.4 M
Significantly Down
Slightly volatile
Property Plant Equipment570641
Fairly Down
Slightly volatile
Depreciation And Amortization235 K223.9 K
Sufficiently Up
Slightly volatile
Selling General Administrative1.6 M2.5 M
Way Down
Slightly volatile
Total Current Liabilities740.1 K779.1 K
Notably Down
Slightly volatile
Non Current Liabilities Total128.8 K135.5 K
Notably Down
Slightly volatile
Short Term Debt248.7 K261.8 K
Notably Down
Slightly volatile
Long Term Debt29.5 K31.1 K
Notably Down
Slightly volatile

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

About BranchOut Food 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

3.23 Million

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

About BranchOut Food Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze BranchOut Food Common's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of BranchOut Food using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of BranchOut Food Common 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 BranchOut Food Common is a strong investment it is important to analyze BranchOut Food'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 BranchOut Food's future performance. For an informed investment choice regarding BranchOut Stock, refer to the following important reports:
Check out BranchOut Food Piotroski F Score and BranchOut Food Altman Z Score analysis.
You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Is Packaged Foods & Meats 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 BranchOut Food. If investors know BranchOut 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 BranchOut Food listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.02)
Revenue Per Share
0.868
Quarterly Revenue Growth
2.973
Return On Assets
(0.43)
Return On Equity
(1.35)
The market value of BranchOut Food Common is measured differently than its book value, which is the value of BranchOut that is recorded on the company's balance sheet. Investors also form their own opinion of BranchOut Food's value that differs from its market value or its book value, called intrinsic value, which is BranchOut Food'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 BranchOut Food's market value can be influenced by many factors that don't directly affect BranchOut Food'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 BranchOut Food's value and its price as these two are different measures arrived at by different means. Investors typically determine if BranchOut Food is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BranchOut Food'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.