Performance Food Group Stock Beneish M Score

PFGC Stock  USD 86.40  2.39  2.84%   
This module uses fundamental data of Performance Food to approximate the value of its Beneish M Score. Performance Food 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 Performance Food Piotroski F Score and Performance Food Altman Z Score analysis.
  
At present, Performance Food's Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 536.3 M, whereas Short and Long Term Debt is forecasted to decline to about 92 M.
At this time, Performance Food's M Score is unavailable. The earnings manipulation may begin if Performance Food'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 Performance Food 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 Performance Food'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.
-2.4
Beneish M Score - Unavailable
Elasticity of Receivables

1.0

Focus
Asset Quality

1.0

Focus
Expense Coverage

0.55

Focus
Gross Margin Strengs

1.15

Focus
Accruals Factor

0.55

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Performance Food 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 Performance Food'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 Receivables2.7 B2.6 B
Sufficiently Up
Slightly volatile
Total Revenue61.2 B58.3 B
Sufficiently Up
Slightly volatile
Total Assets14.1 B13.4 B
Sufficiently Up
Slightly volatile
Total Current Assets6.5 B6.2 B
Sufficiently Up
Slightly volatile
Non Current Assets Total7.6 B7.2 B
Sufficiently Up
Slightly volatile
Property Plant Equipment3.6 B3.4 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization584.5 M556.7 M
Sufficiently Up
Slightly volatile
Selling General Administrative1.4 B2.5 B
Way Down
Slightly volatile
Total Current Liabilities3.9 B3.8 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total5.8 B5.5 B
Sufficiently Up
Slightly volatile
Net Debt5.2 BB
Sufficiently Up
Slightly volatile
Short Term Debt536.3 M510.8 M
Sufficiently Up
Slightly volatile
Long Term Debt3.4 B3.2 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities1.2 B1.2 B
Sufficiently Up
Slightly volatile
Long Term Investments546.2 K575 K
Notably Down
Pretty Stable
Gross Profit Margin0.130.1129
Fairly Up
Slightly volatile

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

About Performance Food 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

584.53 Million

At present, Performance Food's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Performance Food 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 Performance Food. 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 Receivables1.4B1.6B2.3B2.4B2.6B2.7B
Total Revenue25.1B30.4B50.9B57.3B58.3B61.2B
Total Assets7.7B7.8B12.4B12.5B13.4B14.1B
Total Current Assets3.5B3.6B6.0B6.1B6.2B6.5B
Net Debt2.6B3.0B5.0B4.7B5.0B5.2B
Short Term Debt222.3M125.7M190.9M208.1M510.8M536.3M
Long Term Debt2.2B2.2B3.9B3.5B3.2B3.4B
Operating Income(105.3M)200.7M327.4M765.8M826.4M867.7M
Investments(2.1B)(199.8M)(1.9B)(294.6M)(682.7M)(716.8M)

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

About Performance Food Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Performance Food Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Performance Food using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Performance Food 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 Performance Food offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Performance Food's 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 Performance Food Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Performance Food Group Stock:
Check out Performance Food Piotroski F Score and Performance Food Altman Z Score analysis.
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Is Consumer Staples Distribution & Retail 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 Performance Food. If investors know Performance 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 Performance Food 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
(0.10)
Earnings Share
2.71
Revenue Per Share
357.357
Quarterly Revenue Growth
0.032
Return On Assets
0.0378
The market value of Performance Food is measured differently than its book value, which is the value of Performance that is recorded on the company's balance sheet. Investors also form their own opinion of Performance Food's value that differs from its market value or its book value, called intrinsic value, which is Performance Food's 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 Performance Food's market value can be influenced by many factors that don't directly affect Performance Food's 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 Performance Food's value and its price as these two are different measures arrived at by different means. Investors typically determine if Performance Food is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Performance Food's 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.