Truist Financial Corp Stock Beneish M Score

TFC Stock  USD 47.96  1.15  2.46%   
This module uses fundamental data of Truist Financial to approximate the value of its Beneish M Score. Truist 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 Truist Financial Piotroski F Score and Truist Financial Altman Z Score analysis.
  
At present, Truist Financial's Short Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Debt To Equity is expected to grow to 1.69, whereas Net Debt is forecasted to decline to about 17.3 B. At present, Truist Financial's Dividend Yield is projected to increase slightly based on the last few years of reporting. The current year's Book Value Per Share is expected to grow to 46.71, whereas PTB Ratio is forecasted to decline to 0.79.
At this time, it appears that Truist Financial Corp is an unlikely manipulator. The earnings manipulation may begin if Truist 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 Truist 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 Truist 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.
-2.57
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.01

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.89

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.74

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.92

Focus

Truist 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 Truist 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 Receivables13.6 B13 B
Sufficiently Up
Slightly volatile
Total Revenue24.6 B23.4 B
Sufficiently Up
Slightly volatile
Total Assets562.1 B535.3 B
Sufficiently Up
Slightly volatile
Total Current Assets29.1 B30.6 B
Notably Down
Pretty Stable
Non Current Assets Total529.9 B504.7 B
Sufficiently Up
Slightly volatile
Property Plant Equipment2.9 B4.1 B
Way Down
Slightly volatile
Selling General Administrative9.1 B8.7 B
Sufficiently Up
Slightly volatile
Total Current Liabilities139.1 B132.4 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total499.9 B476.1 B
Sufficiently Up
Slightly volatile
Short Term Debt21.8 B20.8 B
Sufficiently Up
Slightly volatile
Long Term Debt32.6 B38.9 B
Fairly Down
Slightly volatile
Total Cash From Operating Activities9.1 B8.6 B
Sufficiently Up
Slightly volatile
Short Term Investments3.4 B3.6 B
Notably Down
Slightly volatile
Long Term Investments189.8 B124.6 B
Way Up
Slightly volatile
Gross Profit Margin0.810.91
Fairly Down
Slightly volatile

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

About Truist 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.

Other Operating Expenses

24.56 Billion

At present, Truist Financial's Other Operating Expenses is projected to increase significantly based on the last few years of reporting.

Truist 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 Truist 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 Receivables6.1B5.2B10.3B11.8B13.0B13.6B
Total Revenue12.0B20.4B23.1B22.3B23.4B24.6B
Total Assets473.1B509.2B541.2B555.3B535.3B562.1B
Total Current Assets99.9B144.9B183.8B21.4B30.6B29.1B
Net Debt40.5B26.8B20.9B45.2B29.1B17.3B
Short Term Debt18.2B4.4B2.5B23.4B20.8B21.8B
Long Term Debt41.3B39.6B35.9B43.2B38.9B32.6B
Operating Income4.6B7.1B9.5B8.9B(44M)(41.8M)
Investments36.8B(39.7B)(29.0B)(30.0B)22.9B24.0B

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

About Truist Financial Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Truist Financial Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Truist Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Truist 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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When determining whether Truist Financial Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Truist Financial'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 Truist Financial Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Truist Financial Corp Stock:
Check out Truist Financial Piotroski F Score and Truist Financial Altman Z Score analysis.
You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Regional Banks 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 Truist Financial. If investors know Truist 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 Truist Financial 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
0.239
Dividend Share
2.08
Earnings Share
(4.86)
Revenue Per Share
10.857
Quarterly Revenue Growth
0.061
The market value of Truist Financial Corp is measured differently than its book value, which is the value of Truist that is recorded on the company's balance sheet. Investors also form their own opinion of Truist Financial's value that differs from its market value or its book value, called intrinsic value, which is Truist Financial'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 Truist Financial's market value can be influenced by many factors that don't directly affect Truist Financial'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 Truist Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Truist Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Truist Financial'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.