Babcock Wilcox Enterprises, Stock Beneish M Score

BWSN Stock  USD 23.50  0.06  0.25%   
This module uses fundamental data of Babcock Wilcox to approximate the value of its Beneish M Score. Babcock Wilcox 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 Babcock Wilcox Piotroski F Score and Babcock Wilcox Altman Z Score analysis.
  
At this time, Babcock Wilcox's Net Debt is very stable compared to the past year. As of the 26th of November 2024, Interest Debt Per Share is likely to grow to 6.03, while Short and Long Term Debt Total is likely to drop about 242.1 M. At this time, Babcock Wilcox's Receivables Turnover is very stable compared to the past year.
At this time, it appears that Babcock Wilcox Enter is a possible manipulator. The earnings manipulation may begin if Babcock Wilcox'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 Babcock Wilcox 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 Babcock Wilcox'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.
-2.16
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.03

Focus
Asset Quality

1.24

Focus
Expense Coverage

0.93

Focus
Gross Margin Strengs

0.62

Focus
Accruals Factor

0.93

Focus
Depreciation Resistance

0.95

Focus
Net Sales Growth

1.03

Focus
Financial Leverage Condition

0.98

Focus

Babcock Wilcox 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 Babcock Wilcox'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 Receivables285.2 M270.2 M
Notably Up
Slightly volatile
Total RevenueB999.4 M
Fairly Up
Slightly volatile
Total Assets867.6 M775.7 M
Moderately Up
Slightly volatile
Total Current Assets515 M497.6 M
Sufficiently Up
Slightly volatile
Non Current Assets Total352.6 M278.1 M
Significantly Up
Slightly volatile
Property Plant Equipment87.1 M86.3 M
Slightly Up
Slightly volatile
Depreciation And Amortization22.7 M21 M
Significantly Up
Pretty Stable
Selling General Administrative896.8 K944 K
Notably Down
Slightly volatile
Total Current Liabilities399.3 M350.2 M
Fairly Up
Slightly volatile
Non Current Liabilities Total476.7 M625.9 M
Way Down
Slightly volatile
Short Term Debt10.9 M11.5 M
Notably Down
Pretty Stable
Long Term Debt307.6 M401 M
Way Down
Slightly volatile
Short Term InvestmentsM3.6 M
Significantly Up
Slightly volatile

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

About Babcock Wilcox 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

22.69 Million

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

Babcock Wilcox 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 Babcock Wilcox. 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 Receivables257.1M187.6M212.2M276.5M270.2M285.2M
Total Revenue859.1M566.3M723.4M889.8M999.4M1.0B
Total Assets626.4M591.8M913.3M942.7M775.7M867.6M
Total Current Assets412.2M388.8M582.4M557.6M497.6M515.0M
Net Debt274M331M177.9M335.2M365.3M383.6M
Short Term Debt287.3M4.9M18.8M8.5M11.5M10.9M
Operating Income2.5M11.9M57.5M29.1M19.9M20.9M
Gross Profit Margin0.0641(0.12)0.190.290.210.22

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

About Babcock Wilcox Fundamental Analysis

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

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 Babcock Wilcox 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 Babcock Wilcox will appreciate offsetting losses from the drop in the long position's value.

Moving together with Babcock Stock

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Moving against Babcock Stock

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