Homestreet Stock Beneish M Score

HMST Stock  USD 9.52  0.34  3.45%   
This module uses fundamental data of HomeStreet to approximate the value of its Beneish M Score. HomeStreet 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 HomeStreet Piotroski F Score and HomeStreet Altman Z Score analysis.
For more information on how to buy HomeStreet Stock please use our How to Invest in HomeStreet guide.
  
At this time, HomeStreet's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 2.1 B in 2025, whereas Debt To Assets are likely to drop 0.15 in 2025. At this time, HomeStreet's Days Sales Outstanding is comparatively stable compared to the past year. Free Cash Flow Yield is likely to gain to 0.02 in 2025, whereas Capex To Depreciation is likely to drop 0.26 in 2025.
At this time, it appears that HomeStreet is an unlikely manipulator. The earnings manipulation may begin if HomeStreet'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 HomeStreet 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 HomeStreet'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.
-2.46
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.26

Focus
Asset Quality

0.97

Focus
Expense Coverage

1.14

Focus
Gross Margin Strengs

0.88

Focus
Accruals Factor

1.14

Focus
Depreciation Resistance

1.22

Focus
Net Sales Growth

0.83

Focus
Financial Leverage Condition

1.88

Focus

HomeStreet 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 HomeStreet'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 Receivables6.6 B6.3 B
Sufficiently Up
Slightly volatile
Total Revenue335.8 M402.6 M
Fairly Down
Slightly volatile
Total AssetsB10.8 B
Way Down
Slightly volatile
Total Current Assets178.9 M188.3 M
Notably Down
Slightly volatile
Non Current Assets Total11.1 B10.5 B
Sufficiently Up
Slightly volatile
Property Plant Equipment55.9 M58.8 M
Notably Down
Slightly volatile
Depreciation And Amortization7.2 M9.5 M
Way Down
Pretty Stable
Selling General Administrative35.3 M37.2 M
Notably Down
Pretty Stable
Total Current Liabilities8.6 B8.2 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total10.7 B10.2 B
Sufficiently Up
Slightly volatile
Long Term Debt254 M258.5 M
Fairly Down
Pretty Stable
Short Term Investments812.4 M1.4 B
Way Down
Slightly volatile
Long Term Investments1.1 B1.2 B
Notably Down
Slightly volatile
Gross Profit Margin0.820.93
Fairly Down
Slightly volatile

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

About HomeStreet 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

7.19 Million

14.9M2.2M1.7M1.6M1.6M12.1M12.1M11.3M10.5M9.5M7.2M100%
At this time, HomeStreet's Depreciation And Amortization is comparatively stable compared to the past year.

HomeStreet 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 HomeStreet. 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.
202020212022202320242025 (projected)
Total Revenue328.0M319.1M254.9M399.7M402.6M335.8M
Total Assets7.2B7.2B9.4B9.4B10.8B6.0B
Total Current Assets58.0M65.2M72.8M209.3M188.3M178.9M
Net Debt390.6M101.8M2.2B1.8B2.0B2.1B
Short Term Debt383.6M41M1.0B1.7B2.0B2.1B
Long Term Debt125.8M167.0M1.2B224.8M258.5M254.0M
Operating Income101.9M146.7M155.6M(32.8M)365.4M383.6M
Investments(442.8M)(320.5M)(2.6B)117.0M105.3M110.5M

HomeStreet 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, HomeStreet's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to HomeStreet's managers, analysts, and investors.
92.8%
Environmental
80.2%
Governance
89.1%
Social

About HomeStreet Fundamental Analysis

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

When running HomeStreet's price analysis, check to measure HomeStreet'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 HomeStreet is operating at the current time. Most of HomeStreet's value examination focuses on studying past and present price action to predict the probability of HomeStreet's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move HomeStreet's price. Additionally, you may evaluate how the addition of HomeStreet to your portfolios can decrease your overall portfolio volatility.


 

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