Zhihu Inc Adr Stock Beneish M Score

ZH Stock  USD 3.60  0.03  0.84%   
This module uses fundamental data of Zhihu to approximate the value of its Beneish M Score. Zhihu 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 Zhihu Piotroski F Score and Zhihu Altman Z Score analysis.
  
The Zhihu's current Short and Long Term Debt Total is estimated to increase to about 46.5 M, while Net Debt is projected to decrease to (2.2 B). As of now, Zhihu's PB Ratio is increasing as compared to previous years. The Zhihu's current Capex To Revenue is estimated to increase to 0, while Price To Sales Ratio is projected to decrease to 0.29.
At this time, it appears that Zhihu Inc ADR is an unlikely manipulator. The earnings manipulation may begin if Zhihu'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 Zhihu 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 Zhihu'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.
-4.14
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.62

Focus
Asset Quality

0.91

Focus
Expense Coverage

1.79

Focus
Gross Margin Strengs

0.77

Focus
Accruals Factor

1.79

Focus
Depreciation Resistance

0.87

Focus
Net Sales Growth

0.67

Focus
Financial Leverage Condition

4.54

Focus

Zhihu 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 Zhihu'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 Receivables739.2 M682.9 M
Significantly Up
Slightly volatile
Total Revenue2.8 B4.2 B
Way Down
Slightly volatile
Total Assets6.8 B6.8 B
Slightly Up
Slightly volatile
Total Current Assets6.5 B6.4 B
Fairly Up
Slightly volatile
Non Current Assets Total296.7 M417.4 M
Way Down
Slightly volatile
Property Plant Equipment81.3 M123.5 M
Way Down
Slightly volatile
Selling General Administrative501.6 M418.5 M
Fairly Up
Slightly volatile
Total Current Liabilities1.6 B1.9 B
Fairly Down
Slightly volatile
Non Current Liabilities Total140.8 M148.2 M
Notably Down
Slightly volatile
Short Term Debt35.5 M42.1 M
Fairly Down
Slightly volatile
Short Term Investments3.3 B3.4 B
Fairly Down
Pretty Stable
Gross Profit Margin0.420.5468
Way Down
Slightly volatile

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

About Zhihu 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.

Current Deferred Revenue

256.54 Million

As of now, Zhihu's Current Deferred Revenue is increasing as compared to previous years.

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

About Zhihu Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Zhihu Inc ADR's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Zhihu using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Zhihu Inc ADR 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.

Currently Active Assets on Macroaxis

Check out Zhihu Piotroski F Score and Zhihu Altman Z Score analysis.
You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Is Movies & Entertainment 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 Zhihu. If investors know Zhihu 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 Zhihu listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.90)
Revenue Per Share
42.343
Quarterly Revenue Growth
(0.11)
Return On Assets
(0.09)
Return On Equity
(0.13)
The market value of Zhihu Inc ADR is measured differently than its book value, which is the value of Zhihu that is recorded on the company's balance sheet. Investors also form their own opinion of Zhihu's value that differs from its market value or its book value, called intrinsic value, which is Zhihu'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 Zhihu's market value can be influenced by many factors that don't directly affect Zhihu'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 Zhihu's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zhihu is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zhihu'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.