Lakeland Beneish M Score

LKFN
 Stock
  

USD 74.06  0.06  0.08%   

This module uses fundamental data of Lakeland Financial to approximate the value of its Beneish M Score. Lakeland 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. Additionally, see Lakeland Financial Piotroski F Score and Lakeland Financial Altman Z Score analysis.
  
Lakeland Financial Long Term Debt is quite stable at the moment as compared to the past year. The company's current value of Long Term Debt is estimated at 36.76 Million. Total Debt is expected to rise to about 118.3 M this year, although the value of Issuance Repayment of Debt Securities will most likely fall to (11.3 M). Lakeland Financial Asset Turnover is quite stable at the moment as compared to the past year. The company's current value of Asset Turnover is estimated at 0.0472. Debt to Equity Ratio is expected to rise to 0.09 this year, although the value of Cash Flow Per Share will most likely fall to 3.59.
At this time, it appears that Lakeland Financial is an unlikely manipulator. The earnings manipulation may begin if Lakeland 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 Lakeland 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 Lakeland 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.
-2.93
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.1Focus
Asset QualityN/AFocus
Expense Coverage1.11Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.11Focus
Depreciation Resistance1.06Focus
Net Sales Growth0.85Focus
Financial Leverage Condition1.01Focus

Lakeland 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 Lakeland 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
Selling General and Administrative Expense76.3 M80.5 M
Notably Down
Increasing
Slightly volatile
Revenues203.1 M237.9 M
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables16.6 M17.7 M
Notably Down
Increasing
Slightly volatile
Property Plant and Equipment Net59.8 M59.3 M
Slightly Up
Increasing
Slightly volatile
Operating Income108.5 M117.4 M
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations90.3 M113.8 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities4.7 B5.9 B
Significantly Down
Increasing
Slightly volatile
Investments5.3 B5.6 B
Significantly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion5.8 M6.1 M
Notably Down
Increasing
Slightly volatile
Total Debt118.3 M75 M
Way Up
Decreasing
Slightly volatile
Total Assets5.2 B6.6 B
Significantly Down
Increasing
Slightly volatile

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

About Lakeland 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.

Depreciation Amortization and Accretion

5.76 Million

Lakeland Financial Depreciation Amortization and Accretion is quite stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 5.76 Million

Lakeland 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 Lakeland 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.
201720182019202020212022 (projected)
Trade and Non Trade Receivables14.09 M15.52 M15.39 M18.76 M17.67 M16.56 M
Revenues201.71 M239.08 M260.21 M239.95 M237.94 M203.1 M
Total Assets4.68 B4.88 B4.95 B5.83 B6.56 B5.21 B
Property Plant and Equipment Net56.47 M58.1 M60.37 M59.3 M59.31 M59.8 M
Depreciation Amortization and Accretion5.12 M5.65 M5.93 M6.04 M6.11 M5.76 M
Selling General and Administrative Expense62.85 M66.9 M68.57 M69.44 M80.47 M76.31 M
Total Liabilities4.21 B4.35 B4.35 B5.17 B5.85 B4.66 B
Total Debt181.61 M276.48 M170 M85.5 M75 M118.33 M
Operating Income89.63 M98.94 M107.39 M103.88 M117.44 M108.46 M
Net Cash Flow from Operations77.24 M104.97 M100.04 M87.23 M113.77 M90.32 M
Investments4.33 B4.47 B4.64 B5.35 B5.64 B5.25 B

About Lakeland Financial Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Lakeland Financial's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Lakeland Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Lakeland Financial 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.
Lakeland Financial Corporation operates as the bank holding company for Lake City Bank that provides various banking products and services. Lakeland Financial Corporation was founded in 1872 and is headquartered in Warsaw, Indiana. Lakeland Finl operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 600 people.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Lakeland Financial in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Lakeland Financial's short interest history, or implied volatility extrapolated from Lakeland Financial options trading.

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Additionally, see Lakeland Financial Piotroski F Score and Lakeland Financial Altman Z Score analysis. Note that the Lakeland Financial information on this page should be used as a complementary analysis to other Lakeland Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

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When running Lakeland Financial price analysis, check to measure Lakeland Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lakeland Financial is operating at the current time. Most of Lakeland Financial's value examination focuses on studying past and present price action to predict the probability of Lakeland Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Lakeland Financial's price. Additionally, you may evaluate how the addition of Lakeland Financial to your portfolios can decrease your overall portfolio volatility.
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Is Lakeland Financial's industry 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 Lakeland Financial. If investors know Lakeland 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 Lakeland 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 YOY
0.181
Market Capitalization
1.9 B
Quarterly Revenue Growth YOY
0.128
Return On Assets
0.0163
Return On Equity
0.1699
The market value of Lakeland Financial is measured differently than its book value, which is the value of Lakeland that is recorded on the company's balance sheet. Investors also form their own opinion of Lakeland Financial's value that differs from its market value or its book value, called intrinsic value, which is Lakeland 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 Lakeland Financial's market value can be influenced by many factors that don't directly affect Lakeland 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 Lakeland Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Lakeland Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lakeland 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.