Golden Heaven Group Stock Beneish M Score

GDHG Stock   1.65  0.06  3.77%   
This module uses fundamental data of Golden Heaven to approximate the value of its Beneish M Score. Golden Heaven 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 Golden Heaven Piotroski F Score and Golden Heaven Altman Z Score analysis.
  
At this time, Golden Heaven's Net Debt To EBITDA is most likely to increase slightly in the upcoming years. The Golden Heaven's current Debt To Equity is estimated to increase to 0, while Short and Long Term Debt is projected to decrease to roughly 114.2 K. At this time, Golden Heaven's Days Of Inventory On Hand is most likely to slightly decrease in the upcoming years. The Golden Heaven's current Capex To Revenue is estimated to increase to 0.24, while PTB Ratio is projected to decrease to 335.51.
At this time, it appears that Golden Heaven Group is a possible manipulator. The earnings manipulation may begin if Golden Heaven'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 Golden Heaven 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 Golden Heaven'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.
-0.71
Beneish M Score - Possible Manipulator
Elasticity of Receivables

0.84

Focus
Asset Quality

0.77

Focus
Expense Coverage

0.6

Focus
Gross Margin Strengs

1.04

Focus
Accruals Factor

0.6

Focus
Depreciation Resistance

1.08

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.31

Focus

Golden Heaven 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 Golden Heaven'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 Receivables46 K52 K
Fairly Down
Slightly volatile
Total Revenue38.5 M36.6 M
Sufficiently Up
Slightly volatile
Total Assets79.9 M94.6 M
Fairly Down
Slightly volatile
Total Current Assets18.5 M13.3 M
Significantly Up
Pretty Stable
Non Current Assets Total54.5 M78 M
Way Down
Slightly volatile
Property Plant Equipment31 M31 M
Slightly Down
Slightly volatile
Depreciation And Amortization3.6 M3.9 M
Significantly Down
Slightly volatile
Selling General Administrative3.5 M5.6 M
Way Down
Slightly volatile
Total Current Liabilities14.8 M13.1 M
Moderately Up
Slightly volatile
Non Current Liabilities Total8.2 MM
Significantly Up
Slightly volatile
Short Term Debt579 K558.1 K
Sufficiently Up
Slightly volatile
Operating Income17 M12.3 M
Significantly Up
Slightly volatile
Gross Profit Margin0.730.7
Sufficiently Up
Slightly volatile

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

About Golden Heaven 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

3.57 Million

At this time, Golden Heaven's Depreciation And Amortization is most likely to increase significantly in the upcoming years.

About Golden Heaven Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Golden Heaven Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Golden Heaven using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Golden Heaven Group 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 Golden Heaven Group is a strong investment it is important to analyze Golden Heaven'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 Golden Heaven's future performance. For an informed investment choice regarding Golden Stock, refer to the following important reports:
Check out Golden Heaven Piotroski F Score and Golden Heaven Altman Z Score analysis.
You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Is Hotels, Restaurants & Leisure 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 Golden Heaven. If investors know Golden 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 Golden Heaven 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
(0.67)
Earnings Share
1.62
Revenue Per Share
24.732
Quarterly Revenue Growth
(0.31)
Return On Assets
0.0292
The market value of Golden Heaven Group is measured differently than its book value, which is the value of Golden that is recorded on the company's balance sheet. Investors also form their own opinion of Golden Heaven's value that differs from its market value or its book value, called intrinsic value, which is Golden Heaven'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 Golden Heaven's market value can be influenced by many factors that don't directly affect Golden Heaven'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 Golden Heaven's value and its price as these two are different measures arrived at by different means. Investors typically determine if Golden Heaven is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Golden Heaven'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.