Niocorp Developments Ltd Stock Beneish M Score

NB Stock   1.36  0.03  2.16%   
This module uses fundamental data of NioCorp Developments to approximate the value of its Beneish M Score. NioCorp Developments 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 NioCorp Developments Piotroski F Score and NioCorp Developments Altman Z Score analysis.
  
At present, NioCorp Developments' Long Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Short and Long Term Debt Total is expected to grow to about 8.6 M, whereas Net Debt is forecasted to decline to about 4.5 M. At present, NioCorp Developments' Payables Turnover is projected to increase slightly based on the last few years of reporting. The current year's Cash Per Share is expected to grow to 0.09, whereas PTB Ratio is forecasted to decline to 35.29.
At this time, it appears that NioCorp Developments is an unlikely manipulator. The earnings manipulation may begin if NioCorp Developments' 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 NioCorp Developments 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 NioCorp Developments' 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.
-5.39
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

N/A

Focus
Asset Quality

0.21

Focus
Expense Coverage

N/A

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

N/A

Focus
Depreciation Resistance

0.81

Focus
Net Sales Growth

N/A

Focus
Financial Leverage Condition

0.64

Focus

NioCorp Developments 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 NioCorp Developments' 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
Total Assets20.2 M20.1 M
Slightly Up
Slightly volatile
Total Current Assets3.7 M2.9 M
Significantly Up
Slightly volatile
Non Current Assets Total16.5 M17.1 M
Sufficiently Down
Slightly volatile
Property Plant Equipment17 M19.7 M
Fairly Down
Slightly volatile
Depreciation And Amortization2.1 KK
Notably Up
Slightly volatile
Selling General Administrative3.1 M3.5 M
Fairly Down
Slightly volatile
Total Current Liabilities6.9 M12 M
Way Down
Slightly volatile
Non Current Liabilities Total7.4 M5.6 M
Significantly Up
Slightly volatile
Short Term Debt4.5 M7.9 M
Way Down
Pretty Stable
Long Term Debt12.8 M12.1 M
Sufficiently Up
Slightly volatile
Long Term Investments6.8 KK
Way Up
Slightly volatile

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

About NioCorp Developments 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.

Current Deferred Revenue

64,980

At present, NioCorp Developments' Current Deferred Revenue is projected to decrease significantly based on the last few years of reporting.

NioCorp Developments 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 NioCorp Developments. 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)
Total Assets11.0M24.5M22.8M20.9M20.1M20.2M
Total Current Assets338K7.3M5.7M3.7M2.9M3.7M
Non Current Assets Total10.7M17.1M17.1M17.2M17.1M16.5M
Selling General Administrative1.7M2.0M2.8M4.9M3.5M3.1M
Total Current Liabilities8.0M3.9M5.1M3.6M12.0M6.9M
Non Current Liabilities Total344K7.3M23K26.2M5.6M7.4M
Net Debt5.0M3.5M(1.0M)8.5M5.8M4.5M
Operating Income(3.4M)(3.9M)(7.8M)(37.4M)(13.8M)(14.4M)
Total Cash From Operating Activities(3.0M)(4.7M)(6.2M)(17.3M)(11.7M)(12.3M)
Long Term Investments7K16K10K9K4K6.8K

About NioCorp Developments Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze NioCorp Developments Ltd's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of NioCorp Developments using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of NioCorp Developments Ltd 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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Is Diversified Metals & Mining 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 NioCorp Developments. If investors know NioCorp 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 NioCorp Developments listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.27)
Return On Assets
(0.42)
Return On Equity
(7.72)
The market value of NioCorp Developments is measured differently than its book value, which is the value of NioCorp that is recorded on the company's balance sheet. Investors also form their own opinion of NioCorp Developments' value that differs from its market value or its book value, called intrinsic value, which is NioCorp Developments' 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 NioCorp Developments' market value can be influenced by many factors that don't directly affect NioCorp Developments' 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 NioCorp Developments' value and its price as these two are different measures arrived at by different means. Investors typically determine if NioCorp Developments is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NioCorp Developments' 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.