This module uses fundamental data of Xponential Fitness to approximate the value of its Beneish M Score. Xponential Fitness 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 Xponential Fitness Piotroski F Score and Xponential Fitness Altman Z Score analysis.
At this time, Xponential Fitness' Long Term Debt To Capitalization is most likely to slightly decrease in the upcoming years. The Xponential Fitness' current Total Debt To Capitalization is estimated to increase to 1.09, while Net Debt is projected to decrease to roughly 202.7 M. At this time, Xponential Fitness' EV To Sales is most likely to drop slightly in the upcoming years. The Xponential Fitness' current Free Cash Flow Per Share is estimated to increase to 0.86, while Dividend Yield is projected to decrease to 0.02.
At this time, it appears that Xponential Fitness is an unlikely manipulator. The earnings manipulation may begin if Xponential Fitness' 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 Xponential Fitness 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 Xponential Fitness' 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.
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 Xponential Fitness' 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.
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 Xponential Fitness' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Xponential Fitness in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Xponential Fitness' degree of accounting gimmicks and manipulations.
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
31.38 Million
At this time, Xponential Fitness' Depreciation And Amortization is most likely to increase significantly in the upcoming years.
Xponential Fitness 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 Xponential Fitness. 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.
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, Xponential Fitness' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Xponential Fitness' managers, analysts, and investors.
Environmental
Governance
Social
About Xponential Fitness Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Xponential Fitness's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Xponential Fitness using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Xponential Fitness 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.
When determining whether Xponential Fitness is a strong investment it is important to analyze Xponential Fitness' 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 Xponential Fitness' future performance. For an informed investment choice regarding Xponential Stock, refer to the following important reports:
For more detail on how to invest in Xponential Stock please use our How to Invest in Xponential Fitness guide.You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Is Hotels, Restaurants & Leisure 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 Xponential Fitness. If investors know Xponential 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 Xponential Fitness 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
(0.82)
Earnings Share
(1.15)
Revenue Per Share
10.372
Quarterly Revenue Growth
0.001
Return On Assets
0.0441
The market value of Xponential Fitness is measured differently than its book value, which is the value of Xponential that is recorded on the company's balance sheet. Investors also form their own opinion of Xponential Fitness' value that differs from its market value or its book value, called intrinsic value, which is Xponential Fitness' 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 Xponential Fitness' market value can be influenced by many factors that don't directly affect Xponential Fitness' 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 Xponential Fitness' value and its price as these two are different measures arrived at by different means. Investors typically determine if Xponential Fitness is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Xponential Fitness' 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.