Denison Mines Corp Stock Beneish M Score

DNN Stock  USD 2.32  0.07  2.93%   
This module uses fundamental data of Denison Mines to approximate the value of its Beneish M Score. Denison Mines 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 Denison Mines Piotroski F Score and Denison Mines Altman Z Score analysis.
  
At this time, Denison Mines' Short and Long Term Debt is very stable compared to the past year. As of the 26th of November 2024, Long Term Debt Total is likely to grow to about 434.7 K, though Net Debt is likely to grow to (124.5 M). At this time, Denison Mines' EV To Sales is very stable compared to the past year. As of the 26th of November 2024, Net Income Per Share is likely to grow to 0.11, while Days Sales Outstanding is likely to drop 350.28.
At this time, it appears that Denison Mines Corp is an unlikely manipulator. The earnings manipulation may begin if Denison Mines' 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 Denison Mines 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 Denison Mines' 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.
-3.36
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

-0.22

Focus
Expense Coverage

0.82

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

0.82

Focus
Depreciation Resistance

1.2

Focus
Net Sales Growth

0.95

Focus
Financial Leverage Condition

1.69

Focus

Denison Mines 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 Denison Mines' 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 Receivables1.8 M1.9 M
Notably Down
Slightly volatile
Total Revenue1.8 M1.9 M
Notably Down
Slightly volatile
Total Assets418.6 M726.6 M
Way Down
Slightly volatile
Total Current Assets156 M148.5 M
Sufficiently Up
Slightly volatile
Non Current Assets Total360.2 M643.4 M
Way Down
Slightly volatile
Property Plant Equipment305.6 M291.5 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization8.2 M9.4 M
Fairly Down
Slightly volatile
Selling General Administrative10.7 M13.8 M
Significantly Down
Very volatile
Total Current Liabilities14.4 M17.9 M
Significantly Down
Slightly volatile
Non Current Liabilities Total78.6 M132.2 M
Way Down
Slightly volatile
Short Term Debt202.3 K213 K
Notably Down
Very volatile

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

About Denison Mines 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

1.76 Million

At this time, Denison Mines' Other Operating Expenses is very stable compared to the past year.

Denison Mines 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 Denison Mines. 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 Receivables4.0M2.6M2.9M3.2M1.9M1.8M
Total Revenue15.5M14.4M20M16.9M1.9M1.8M
Total Assets300.0M320.7M510.3M515.8M726.6M418.6M
Total Current Assets16.5M49.4M86.9M67.2M148.5M156.0M
Net Debt(7.2M)(24.4M)(63.5M)(50.3M)(131.1M)(124.5M)
Short Term Debt470K240K179K216K213K202.4K
Long Term Debt28K24K39K125K112.5K106.9K
Operating Income(24.3M)(18.0M)(23.6M)(39.3M)(48.9M)(46.5M)
Investments(921K)305K(77.4M)(6.8M)(5.0M)(5.3M)
Gross Profit Margin0.08520.280.370.33(1.1)(1.16)

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

About Denison Mines Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Denison Mines Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Denison Mines using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Denison Mines Corp 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.
When determining whether Denison Mines Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Denison Mines' 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 Denison Mines Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Denison Mines Corp Stock:
Check out Denison Mines Piotroski F Score and Denison Mines Altman Z Score analysis.
You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Is Oil, Gas & Consumable Fuels 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 Denison Mines. If investors know Denison 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 Denison Mines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.02)
Revenue Per Share
0.004
Quarterly Revenue Growth
(0.11)
Return On Assets
(0.06)
Return On Equity
(0.05)
The market value of Denison Mines Corp is measured differently than its book value, which is the value of Denison that is recorded on the company's balance sheet. Investors also form their own opinion of Denison Mines' value that differs from its market value or its book value, called intrinsic value, which is Denison Mines' 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 Denison Mines' market value can be influenced by many factors that don't directly affect Denison Mines' 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 Denison Mines' value and its price as these two are different measures arrived at by different means. Investors typically determine if Denison Mines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Denison Mines' 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.