Mfs Investment Grade Stock Beneish M Score

CXH Stock  USD 8.13  0.03  0.37%   
This module uses fundamental data of MFS Investment to approximate the value of its Beneish M Score. MFS Investment 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 MFS Investment Piotroski F Score and MFS Investment Altman Z Score analysis.
  
As of now, MFS Investment's Short and Long Term Debt Total is decreasing as compared to previous years. The MFS Investment's current Cash Flow To Debt Ratio is estimated to increase to 0.26, while Long Term Debt is projected to decrease to under 51.2 M. As of now, MFS Investment's EV To Sales is increasing as compared to previous years. The MFS Investment's current Free Cash Flow Per Share is estimated to increase to 1.89, while Dividend Yield is projected to decrease to 0.05.
At this time, it appears that MFS Investment Grade is an unlikely manipulator. The earnings manipulation may begin if MFS Investment'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 MFS Investment 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 MFS Investment'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.
-2.96
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.63

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.35

Focus
Gross Margin Strengs

0.83

Focus
Accruals Factor

1.35

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.95

Focus
Financial Leverage Condition

0.62

Focus

MFS Investment 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 MFS Investment'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 Receivables2.3 M1.5 M
Way Up
Slightly volatile
Total Assets127.7 M103 M
Fairly Up
Slightly volatile
Total Current Assets1.4 M1.5 M
Notably Down
Slightly volatile
Non Current Assets Total113 M101.5 M
Moderately Up
Slightly volatile
Selling General Administrative468.9 K366.2 K
Significantly Up
Slightly volatile
Total Current Liabilities1.4 M1.9 M
Way Down
Pretty Stable
Non Current Liabilities Total32.8 M39.4 M
Significantly Down
Slightly volatile
Short Term Debt61.4 M64.7 M
Notably Down
Slightly volatile
Long Term Debt51.2 M63.5 M
Significantly Down
Slightly volatile
Long Term Investments124.6 M101.5 M
Fairly Up
Slightly volatile
Gross Profit Margin0.650.78
Fairly Down
Pretty Stable

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

About MFS Investment 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.

Operating Income

1.34 Million

As of now, MFS Investment's Operating Income is decreasing as compared to previous years.

MFS Investment 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 MFS Investment. 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 Receivables2.0M4.8M1.8M1.7M1.5M2.3M
Total Revenue4.6M5.1M(18.2M)1.9M1.7M1.6M
Total Assets153.0M156.3M129.1M114.5M103.0M127.7M
Total Current Assets4.0M7.9M1.8M1.7M1.5M1.4M
Net Debt51.6M49.2M48.7M43.8M50.3M38.6M
Operating Income4.4M4.9M(17.3M)1.6M1.4M1.3M
Gross Profit Margin0.80.811.050.860.780.65

About MFS Investment Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze MFS Investment Grade's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of MFS Investment using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of MFS Investment Grade 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 MFS Investment Grade offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of MFS Investment'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 Mfs Investment Grade Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Mfs Investment Grade Stock:
Check out MFS Investment Piotroski F Score and MFS Investment Altman Z Score analysis.
You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Is Asset Management & Custody Banks 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 MFS Investment. If investors know MFS 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 MFS Investment 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
0.118
Dividend Share
0.279
Earnings Share
0.26
Revenue Per Share
0.655
Quarterly Revenue Growth
(0.05)
The market value of MFS Investment Grade is measured differently than its book value, which is the value of MFS that is recorded on the company's balance sheet. Investors also form their own opinion of MFS Investment's value that differs from its market value or its book value, called intrinsic value, which is MFS Investment'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 MFS Investment's market value can be influenced by many factors that don't directly affect MFS Investment'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 MFS Investment's value and its price as these two are different measures arrived at by different means. Investors typically determine if MFS Investment is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MFS Investment'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.