Rapid Micro Biosystems Stock Beneish M Score

RPID Stock  USD 1.11  0.03  2.78%   
This module uses fundamental data of Rapid Micro to approximate the value of its Beneish M Score. Rapid Micro 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 Rapid Micro Piotroski F Score and Rapid Micro Altman Z Score analysis.
  
At present, Rapid Micro's Short Term Debt is projected to decrease significantly based on the last few years of reporting. The current year's Debt To Equity is expected to grow to 0.07, whereas Net Debt is forecasted to decline to (17.8 M). At present, Rapid Micro's Days Sales Outstanding is projected to slightly decrease based on the last few years of reporting. The current year's Stock Based Compensation To Revenue is expected to grow to 0.22, whereas Book Value Per Share is forecasted to decline to 2.01.
At this time, it appears that Rapid Micro Biosystems is a possible manipulator. The earnings manipulation may begin if Rapid Micro'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 Rapid Micro 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 Rapid Micro'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.
-0.89
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.25

Focus
Asset Quality

3.11

Focus
Expense Coverage

0.68

Focus
Gross Margin Strengs

1.07

Focus
Accruals Factor

0.68

Focus
Depreciation Resistance

1.36

Focus
Net Sales Growth

0.85

Focus
Financial Leverage Condition

-2.14

Focus

Rapid Micro 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 Rapid Micro'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 ReceivablesM5.6 M
Notably Up
Slightly volatile
Total Revenue19.3 M22.5 M
Fairly Down
Slightly volatile
Total Assets107 M143.5 M
Way Down
Slightly volatile
Total Current Assets123.8 M120.4 M
Fairly Up
Slightly volatile
Non Current Assets Total25.1 M23 M
Significantly Up
Slightly volatile
Property Plant Equipment25.2 M24 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization2.3 M3.1 M
Way Down
Slightly volatile
Selling General Administrative14.6 M24.9 M
Way Down
Slightly volatile
Total Current Liabilities14.5 M19 M
Way Down
Slightly volatile
Non Current Liabilities Total10.8 M6.5 M
Way Up
Slightly volatile
Short Term Debt4.2 M2.3 M
Way Up
Pretty Stable
Long Term Debt16.3 M28.5 M
Way Down
Slightly volatile
Short Term Investments39.5 M67.8 M
Way Down
Slightly volatile

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

About Rapid Micro 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

2.32 Million

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

About Rapid Micro Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Rapid Micro Biosystems's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Rapid Micro using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Rapid Micro Biosystems 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 Rapid Micro Biosystems is a strong investment it is important to analyze Rapid Micro's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Rapid Micro's future performance. For an informed investment choice regarding Rapid Stock, refer to the following important reports:
Check out Rapid Micro Piotroski F Score and Rapid Micro Altman Z Score analysis.
You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Is Wireless Telecommunication Services 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 Rapid Micro. If investors know Rapid 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 Rapid Micro listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.12)
Revenue Per Share
0.603
Quarterly Revenue Growth
0.237
Return On Assets
(0.25)
Return On Equity
(0.46)
The market value of Rapid Micro Biosystems is measured differently than its book value, which is the value of Rapid that is recorded on the company's balance sheet. Investors also form their own opinion of Rapid Micro's value that differs from its market value or its book value, called intrinsic value, which is Rapid Micro'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 Rapid Micro's market value can be influenced by many factors that don't directly affect Rapid Micro'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 Rapid Micro's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rapid Micro is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rapid Micro'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.