Edgewell Personal Care Stock Beneish M Score

EPC Stock  USD 35.86  0.85  2.43%   
This module uses fundamental data of Edgewell Personal to approximate the value of its Beneish M Score. Edgewell Personal 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 Edgewell Personal Piotroski F Score and Edgewell Personal Altman Z Score analysis.
  
At present, Edgewell Personal's Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Long Term Debt is expected to grow to about 1.6 B, whereas Short Term Debt is forecasted to decline to about 23.3 M. At present, Edgewell Personal's Free Cash Flow Yield is projected to slightly decrease based on the last few years of reporting. The current year's Capex To Depreciation is expected to grow to 0.85, whereas Dividend Yield is forecasted to decline to 0.01.
At this time, it appears that Edgewell Personal Care is a possible manipulator. The earnings manipulation may begin if Edgewell Personal'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 Edgewell Personal 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 Edgewell Personal'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.
-2.21
Beneish M Score - Possible Manipulator
Elasticity of Receivables

0.69

Focus
Asset Quality

0.93

Focus
Expense Coverage

0.69

Focus
Gross Margin Strengs

1.2

Focus
Accruals Factor

0.69

Focus
Depreciation Resistance

1.45

Focus
Net Sales Growth

1.37

Focus
Financial Leverage Condition

0.96

Focus

Edgewell Personal 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 Edgewell Personal'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 Receivables103.9 M109.4 M
Notably Down
Slightly volatile
Total Revenue3.1 B2.3 B
Significantly Up
Slightly volatile
Total Assets4.4 B3.7 B
Fairly Up
Slightly volatile
Total Current Assets1.2 B936 M
Significantly Up
Slightly volatile
Non Current Assets Total2.8 B2.8 B
Slightly Up
Pretty Stable
Property Plant Equipment475 M304.1 M
Way Up
Slightly volatile
Depreciation And Amortization87.1 M88 M
Fairly Down
Slightly volatile
Selling General Administrative188.2 M198.1 M
Notably Down
Slightly volatile
Total Current Liabilities657.3 M563.6 M
Fairly Up
Slightly volatile
Non Current Liabilities TotalB1.6 B
Significantly Up
Pretty Stable
Net Debt1.2 B1.1 B
Fairly Up
Pretty Stable
Short Term Debt23.3 M24.5 M
Notably Down
Slightly volatile
Long Term Debt1.6 B1.3 B
Fairly Up
Pretty Stable
Operating Income309.4 M199.3 M
Way Up
Slightly volatile
Total Cash From Operating Activities282.1 M231 M
Fairly Up
Slightly volatile
Gross Profit Margin0.510.4241
Fairly Up
Slightly volatile

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

About Edgewell Personal 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

2.65 Billion

At present, Edgewell Personal's Other Operating Expenses is projected to decrease significantly based on the last few years of reporting.

Edgewell Personal 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 Edgewell Personal. 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 Receivables158.8M150.7M136.9M106.2M109.4M103.9M
Total Revenue1.9B2.1B2.2B2.3B2.3B3.1B
Total Assets3.5B3.7B3.7B3.7B3.7B4.4B
Total Current Assets983.6M1.1B942.2M962.4M936M1.2B
Net Debt894.3M781.5M1.2B1.2B1.1B1.2B
Short Term Debt30.2M37.5M27.8M33.5M24.5M23.3M
Long Term Debt1.2B1.2B1.4B1.4B1.3B1.6B
Operating Income195.2M238.8M181.2M224.6M199.3M309.4M
Investments(9.5M)(48.7M)(355.4M)(50.5M)(62.4M)(65.5M)

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

About Edgewell Personal Fundamental Analysis

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

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When determining whether Edgewell Personal Care offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Edgewell Personal'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 Edgewell Personal Care Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Edgewell Personal Care Stock:
Check out Edgewell Personal Piotroski F Score and Edgewell Personal Altman Z Score analysis.
You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Is Personal Care Products 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 Edgewell Personal. If investors know Edgewell 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 Edgewell Personal 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
(0.72)
Dividend Share
0.6
Earnings Share
1.97
Revenue Per Share
45.346
Quarterly Revenue Growth
(0.03)
The market value of Edgewell Personal Care is measured differently than its book value, which is the value of Edgewell that is recorded on the company's balance sheet. Investors also form their own opinion of Edgewell Personal's value that differs from its market value or its book value, called intrinsic value, which is Edgewell Personal'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 Edgewell Personal's market value can be influenced by many factors that don't directly affect Edgewell Personal'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 Edgewell Personal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Edgewell Personal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Edgewell Personal'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.