Faraday Future Intelligent Stock Beneish M Score

FFIE Stock  USD 1.42  0.09  5.96%   
This module uses fundamental data of Faraday Future to approximate the value of its Beneish M Score. Faraday Future 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 Faraday Future Piotroski F Score and Faraday Future Altman Z Score analysis.
  
At present, Faraday Future's Short Term Debt is projected to decrease significantly based on the last few years of reporting. The current year's Short and Long Term Debt is expected to grow to about 148.4 M, whereas Long Term Debt is forecasted to decline to about 22.5 M. At present, Faraday Future's PB Ratio is projected to increase significantly based on the last few years of reporting. The current year's Payables Turnover is expected to grow to 0.62, whereas Free Cash Flow Yield is projected to grow to (44.02).
At this time, it appears that Faraday Future Intel is an unlikely manipulator. The earnings manipulation may begin if Faraday Future'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 Faraday Future 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 Faraday Future'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.
-5.59
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.9

Focus
Asset Quality

-6.22

Focus
Expense Coverage

1.04

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

1.04

Focus
Depreciation Resistance

0.73

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.2

Focus

Faraday Future 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 Faraday Future'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 Receivables6.7 KK
Notably Down
Pretty Stable
Total Assets567.6 M530.5 M
Notably Up
Slightly volatile
Total Current Assets175.7 M91.4 M
Way Up
Slightly volatile
Non Current Assets Total391.9 M439.2 M
Fairly Down
Slightly volatile
Property Plant Equipment356.8 M480.5 M
Way Down
Slightly volatile
Depreciation And Amortization47.7 M45.5 M
Sufficiently Up
Slightly volatile
Selling General Administrative90.1 M82.9 M
Significantly Up
Slightly volatile
Total Current Liabilities380.4 M261.2 M
Way Up
Slightly volatile
Non Current Liabilities Total38.8 M41.1 M
Notably Down
Pretty Stable
Short Term Debt187.8 M108.2 M
Way Up
Slightly volatile
Long Term Debt22.5 M29.9 M
Way Down
Slightly volatile
Long Term Investments183.9 M206.9 M
Fairly Down
Slightly volatile

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

About Faraday Future 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

47.74 Million

At present, Faraday Future's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

About Faraday Future Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Faraday Future Intelligent's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Faraday Future using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Faraday Future Intelligent 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 Faraday Future Intel is a strong investment it is important to analyze Faraday Future'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 Faraday Future's future performance. For an informed investment choice regarding Faraday Stock, refer to the following important reports:
Check out Faraday Future Piotroski F Score and Faraday Future Altman Z Score analysis.
You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Is Automobile Manufacturers 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 Faraday Future. If investors know Faraday 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 Faraday Future listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
974.08
Revenue Per Share
0.378
Return On Assets
(0.27)
Return On Equity
(1.50)
The market value of Faraday Future Intel is measured differently than its book value, which is the value of Faraday that is recorded on the company's balance sheet. Investors also form their own opinion of Faraday Future's value that differs from its market value or its book value, called intrinsic value, which is Faraday Future'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 Faraday Future's market value can be influenced by many factors that don't directly affect Faraday Future'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 Faraday Future's value and its price as these two are different measures arrived at by different means. Investors typically determine if Faraday Future is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Faraday Future'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.