He Equipment Services Stock Beneish M Score

HEES Stock  USD 56.68  1.41  2.55%   
This module uses fundamental data of HE Equipment to approximate the value of its Beneish M Score. HE Equipment 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 HE Equipment Piotroski F Score and HE Equipment Altman Z Score analysis.
  
At this time, HE Equipment's Net Debt is comparatively stable compared to the past year. Long Term Debt is likely to gain to about 1.5 B in 2024, whereas Short Term Debt is likely to drop slightly above 114.3 M in 2024. At this time, HE Equipment's Capex To Revenue is comparatively stable compared to the past year. POCF Ratio is likely to gain to 8.03 in 2024, whereas Dividend Yield is likely to drop 0.02 in 2024.
At this time, it appears that HE Equipment Services is an unlikely manipulator. The earnings manipulation may begin if HE Equipment'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 HE Equipment 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 HE Equipment'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.
-3.25
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.95

Focus
Asset Quality

1.02

Focus
Expense Coverage

0.82

Focus
Gross Margin Strengs

0.56

Focus
Accruals Factor

0.82

Focus
Depreciation Resistance

0.98

Focus
Net Sales Growth

0.67

Focus
Financial Leverage Condition

1.0

Focus

HE Equipment 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 HE Equipment'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 Receivables156.7 M247.4 M
Way Down
Slightly volatile
Total Revenue980.4 M1.5 B
Way Down
Slightly volatile
Total Assets2.8 B2.6 B
Sufficiently Up
Slightly volatile
Total Current Assets292.4 M374.6 M
Significantly Down
Slightly volatile
Non Current Assets Total2.4 B2.3 B
Sufficiently Up
Slightly volatile
Property Plant Equipment115.1 M121.2 M
Notably Down
Slightly volatile
Selling General Administrative216.8 M397.3 M
Way Down
Slightly volatile
Total Current Liabilities192.5 M186.3 M
Sufficiently Up
Pretty Stable
Non Current Liabilities TotalB1.9 B
Sufficiently Up
Slightly volatile
Short Term Debt114.3 M184.3 M
Way Down
Very volatile
Long Term Debt1.5 B1.4 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities425.8 M405.5 M
Sufficiently Up
Slightly volatile
Gross Profit Margin0.260.4659
Way Down
Slightly volatile

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

About HE Equipment 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

428.42 Million

At this time, HE Equipment's Depreciation And Amortization is comparatively stable compared to the past year.

HE Equipment 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 HE Equipment. 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 Receivables192.2M150.5M157.2M225.3M247.4M156.7M
Total Revenue1.3B1.2B1.1B1.2B1.5B980.4M
Total Assets2.0B2.0B2.1B2.3B2.6B2.8B
Total Current Assets302.2M572.6M610.9M435.9M374.6M292.4M
Net Debt1.3B1.1B1.1B1.3B1.6B1.7B
Short Term Debt216.9M9.6M45.1M30.5M184.4M114.3M
Long Term Debt945.6M1.2B1.3B1.2B1.4B1.5B
Operating Income(84.4M)(150.8M)(134.5M)(83.0M)276.7M290.5M
Investments(325.9M)21.1M(171.0M)(546.5M)(682.1M)(648.0M)

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

About HE Equipment Fundamental Analysis

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

When running HE Equipment's price analysis, check to measure HE Equipment's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy HE Equipment is operating at the current time. Most of HE Equipment's value examination focuses on studying past and present price action to predict the probability of HE Equipment's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move HE Equipment's price. Additionally, you may evaluate how the addition of HE Equipment to your portfolios can decrease your overall portfolio volatility.