Kandi Technologies Group Stock Beneish M Score

KNDI Stock  USD 1.23  0.08  6.96%   
This module uses fundamental data of Kandi Technologies to approximate the value of its Beneish M Score. Kandi Technologies 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 Kandi Technologies Piotroski F Score and Kandi Technologies Altman Z Score analysis.
  
As of now, Kandi Technologies' Net Debt is decreasing as compared to previous years. The Kandi Technologies' current Short and Long Term Debt Total is estimated to increase to about 49 M, while Short Term Debt is projected to decrease to under 30.8 M. As of now, Kandi Technologies' Capex To Depreciation is decreasing as compared to previous years. The Kandi Technologies' current EV To Sales is estimated to increase to 3.04, while PTB Ratio is projected to decrease to 0.52.
At this time, it appears that Kandi Technologies is an unlikely manipulator. The earnings manipulation may begin if Kandi Technologies' 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 Kandi Technologies 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 Kandi Technologies' 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.
-3.16
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.69

Focus
Asset Quality

-1.67

Focus
Expense Coverage

1.24

Focus
Gross Margin Strengs

0.66

Focus
Accruals Factor

1.24

Focus
Depreciation Resistance

0.57

Focus
Net Sales Growth

0.84

Focus
Financial Leverage Condition

1.97

Focus

Kandi Technologies 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 Kandi Technologies' 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 Receivables87.5 M149.9 M
Way Down
Slightly volatile
Total Revenue104.4 M123.6 M
Fairly Down
Slightly volatile
Total Assets282.8 M495.5 M
Way Down
Slightly volatile
Total Current Assets360.7 M343.5 M
Sufficiently Up
Slightly volatile
Non Current Assets Total141.2 M151.9 M
Significantly Down
Slightly volatile
Property Plant Equipment61.3 M111.7 M
Way Down
Slightly volatile
Selling General Administrative37.2 M35.4 M
Sufficiently Up
Slightly volatile
Total Current Liabilities83.7 M76.7 M
Significantly Up
Pretty Stable
Non Current Liabilities Total14.3 M12.3 M
Fairly Up
Very volatile
Short Term Debt30.8 M33.4 M
Significantly Down
Slightly volatile
Gross Profit Margin0.220.3347
Way Down
Pretty Stable

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

About Kandi Technologies 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

12.51 Million

As of now, Kandi Technologies' Depreciation And Amortization is increasing as compared to previous years.

Kandi Technologies 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 Kandi Technologies. 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 Receivables135.0M94.5M62.1M50.5M149.9M87.5M
Total Revenue135.7M76.9M91.5M117.8M123.6M104.4M
Total Assets371.2M495.2M520.2M483.0M495.5M282.8M
Total Current Assets195.6M307.1M342.6M329.3M343.5M360.7M
Net Debt59.4M(142.0M)(117.9M)(59.4M)7.8M11.4M
Short Term Debt50.5M92.4K9.1M24.7M33.4M30.8M
Long Term Debt29.4M14.9M2.2M8.4M9.6M14.0M
Operating Income1.7M(12.3M)(45.8M)(22.7M)(13.1M)(12.4M)
Investments31.3M51.2M(7.2M)(35.0M)(53.1M)(50.5M)

About Kandi Technologies Fundamental Analysis

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

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When determining whether Kandi Technologies offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Kandi Technologies' 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 Kandi Technologies Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Kandi Technologies Group Stock:
Check out Kandi Technologies Piotroski F Score and Kandi Technologies Altman Z Score analysis.
You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Is Automotive Parts & Equipment 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 Kandi Technologies. If investors know Kandi 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 Kandi Technologies 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
(0.60)
Earnings Share
(0.08)
Revenue Per Share
1.466
Quarterly Revenue Growth
0.089
Return On Assets
(0.02)
The market value of Kandi Technologies is measured differently than its book value, which is the value of Kandi that is recorded on the company's balance sheet. Investors also form their own opinion of Kandi Technologies' value that differs from its market value or its book value, called intrinsic value, which is Kandi Technologies' 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 Kandi Technologies' market value can be influenced by many factors that don't directly affect Kandi Technologies' 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 Kandi Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Kandi Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kandi Technologies' 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.