Seneca Foods Corp Stock Beneish M Score

SENEB Stock  USD 71.26  0.76  1.08%   
This module uses fundamental data of Seneca Foods to approximate the value of its Beneish M Score. Seneca Foods 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 World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.
  
At present, Seneca Foods' Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Net Debt is expected to grow to about 670.9 M, whereas Short Term Debt is forecasted to decline to about 36.9 M. At present, Seneca Foods' Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's PTB Ratio is expected to grow to 1.23, whereas Dividend Yield is forecasted to decline to 0.000053.
At this time, it appears that Seneca Foods Corp is a possible manipulator. The earnings manipulation may begin if Seneca Foods' 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 Seneca Foods 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 Seneca Foods' 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.
-1.67
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.21

Focus
Asset Quality

1.67

Focus
Expense Coverage

1.45

Focus
Gross Margin Strengs

1.32

Focus
Accruals Factor

1.45

Focus
Depreciation Resistance

0.73

Focus
Net Sales Growth

0.62

Focus
Financial Leverage Condition

0.96

Focus

Seneca Foods 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 Seneca Foods' 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 Receivables60.6 M80.2 M
Way Down
Slightly volatile
Total Revenue911.5 M1.5 B
Way Down
Slightly volatile
Total Assets1.5 B1.4 B
Sufficiently Up
Slightly volatile
Total Current AssetsB967 M
Sufficiently Up
Slightly volatile
Non Current Assets Total469.2 M446.9 M
Sufficiently Up
Slightly volatile
Property Plant Equipment254.7 M346.4 M
Way Down
Slightly volatile
Selling General Administrative73.5 M81.2 M
Moderately Down
Slightly volatile
Total Current Liabilities128.4 M151 M
Fairly Down
Very volatile
Non Current Liabilities Total714 M680 M
Sufficiently Up
Slightly volatile
Net Debt670.9 M639 M
Sufficiently Up
Slightly volatile
Short Term Debt36.9 M39 M
Notably Down
Very volatile
Long Term Debt293.5 M585.8 M
Way Down
Slightly volatile
Gross Profit Margin0.170.129
Significantly Up
Pretty Stable

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

About Seneca Foods 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.

Accumulated Depreciation

(425.85 Million)

At present, Seneca Foods' Accumulated Depreciation is projected to decrease significantly based on the last few years of reporting.

Seneca Foods 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 Seneca Foods. 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 Receivables121.8M101.5M119.2M104.7M80.2M60.6M
Total Revenue1.3B1.5B1.4B1.5B1.5B911.5M
Total Assets909.3M909.3M947.0M1.2B1.4B1.5B
Total Current Assets551.6M516.3M555.4M825.0M967.0M1.0B
Net Debt301.8M109.6M167.2M480.2M639.0M670.9M
Short Term Debt28.3M28.3M26.0M25.8M39.0M36.9M
Long Term Debt217.1M94.1M109.6M432.7M585.8M293.5M
Operating Income70.5M181.1M70.3M52.9M107.2M112.6M
Investments(43.2M)2.3M(45.2M)(64.9M)(47.2M)(44.8M)

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

About Seneca Foods Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Seneca Foods Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Seneca Foods using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Seneca Foods 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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When determining whether Seneca Foods Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Seneca Foods' 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 Seneca Foods Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Seneca Foods Corp Stock:
Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income.
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Is Food Products 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 Seneca Foods. If investors know Seneca 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 Seneca Foods 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
(0.42)
Earnings Share
5.96
Revenue Per Share
211.009
Quarterly Revenue Growth
0.044
Return On Assets
0.0366
The market value of Seneca Foods Corp is measured differently than its book value, which is the value of Seneca that is recorded on the company's balance sheet. Investors also form their own opinion of Seneca Foods' value that differs from its market value or its book value, called intrinsic value, which is Seneca Foods' 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 Seneca Foods' market value can be influenced by many factors that don't directly affect Seneca Foods' 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 Seneca Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine if Seneca Foods is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Seneca Foods' 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.