Kearny Financial Corp Stock Beneish M Score

KRNY Stock  USD 8.21  0.06  0.73%   
This module uses fundamental data of Kearny Financial to approximate the value of its Beneish M Score. Kearny Financial 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 Kearny Financial Piotroski F Score and Kearny Financial Altman Z Score analysis.
  
At this time, Kearny Financial's Short and Long Term Debt Total is fairly stable compared to the past year. Net Debt is likely to rise to about 1.6 B in 2024, whereas Short Term Debt is likely to drop slightly above 166.2 M in 2024. At this time, Kearny Financial's Revenue Per Share is fairly stable compared to the past year.
At this time, it appears that Kearny Financial Corp is an unlikely manipulator. The earnings manipulation may begin if Kearny Financial'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 Kearny Financial 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 Kearny Financial'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.
-2.67
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.34

Focus
Asset Quality

0.97

Focus
Expense Coverage

0.8

Focus
Gross Margin Strengs

0.88

Focus
Accruals Factor

0.8

Focus
Depreciation Resistance

0.85

Focus
Net Sales Growth

0.78

Focus
Financial Leverage Condition

1.73

Focus

Kearny Financial 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 Kearny Financial'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 Receivables31 M29.5 M
Sufficiently Up
Slightly volatile
Total Revenue110.3 M140.6 M
Significantly Down
Slightly volatile
Total Assets4.7 B7.7 B
Way Down
Slightly volatile
Total Current Assets60.7 M63.9 M
Notably Down
Pretty Stable
Non Current Assets TotalB7.6 B
Sufficiently Up
Slightly volatile
Property Plant Equipment46.7 M74.1 M
Way Down
Slightly volatile
Depreciation And AmortizationM5.3 M
Way Down
Slightly volatile
Selling General Administrative48.2 M76.7 M
Way Down
Slightly volatile
Total Current Liabilities4.8 B4.6 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total7.3 B6.9 B
Sufficiently Up
Slightly volatile
Short Term Debt166.2 M175 M
Notably Down
Pretty Stable
Long Term Debt1.5 B1.4 B
Sufficiently Up
Slightly volatile
Operating Income20.8 M21.9 M
Notably Down
Very volatile
Total Cash From Operating Activities35.2 M44 M
Significantly Down
Slightly volatile
Short Term Investments586.8 M1.1 B
Way Down
Slightly volatile
Long Term Investments1.1 B1.2 B
Significantly Down
Pretty Stable
Gross Profit Margin0.820.93
Fairly Down
Slightly volatile

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

About Kearny Financial 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

3.96 Million

At this time, Kearny Financial's Depreciation And Amortization is fairly stable compared to the past year.

Kearny Financial 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 Kearny Financial. 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 Receivables17.4M19.4M20.5M28.1M29.5M31.0M
Total Revenue169.1M206.2M210.5M178.6M140.6M110.3M
Total Assets6.8B7.3B7.7B8.1B7.7B4.7B
Total Current Assets1.6B1.8B6.0B1.3B63.9M60.7M
Net Debt992.2M618.0M799.7M1.4B1.5B1.6B
Short Term Debt5.7M413.6M773.6M1.2B175M166.3M
Long Term Debt1.2B665.9M651.3M1.5B1.4B1.5B
Operating Income57.3M84.5M122.0M52.4M21.9M20.8M
Investments85.0M(308.8M)121.1M(417.9M)258.1M271.0M

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

About Kearny Financial Fundamental Analysis

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

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