Allstate Beneish M Score

ALL
 Stock
  

USD 130.31  1.87  1.46%   

This module uses fundamental data of Allstate Corp to approximate the value of its Beneish M Score. Allstate Corp 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. Please continue to Allstate Corp Piotroski F Score and Allstate Corp Altman Z Score analysis.
  
Debt to Equity Ratio is expected to hike to 0.34 this year, although the value of Long Term Debt will most likely fall to nearly 6.9 B. Allstate Corp Earnings per Basic Share are relatively stable at the moment as compared to the past year. The company's current value of Earnings per Basic Share is estimated at 5.47. Earnings per Diluted Share is expected to hike to 5.39 this year, although the value of Cash and Equivalents Turnover will most likely fall to 76.50.
At this time, it appears that Allstate Corp is an unlikely manipulator. The earnings manipulation may begin if Allstate Corp'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 Allstate Corp 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 Allstate Corp'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.
-2.51
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.16Focus
Asset QualityN/AFocus
Expense Coverage1.14Focus
Gross Margin Strengs1.08Focus
Accruals Factor1.14Focus
Depreciation Resistance1.21Focus
Net Sales Growth0.84Focus
Financial Leverage Condition1.02Focus

Allstate Corp 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 Allstate Corp'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 ExpenseB6.3 B
Sufficiently Down
Increasing
Slightly volatile
Revenues42.7 B50.6 B
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables18.1 B18.4 B
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net1.1 B939 M
Fairly Up
Increasing
Slightly volatile
Operating Income12.8 B14 B
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations4.4 B5.1 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities93.6 B74.3 B
Significantly Up
Decreasing
Slightly volatile
Investments68.2 B64.7 B
Notably Up
Decreasing
Slightly volatile
Gross Margin0.430.4
Notably Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion863.2 M1.1 B
Significantly Down
Increasing
Slightly volatile
Total Debt7.9 BB
Fairly Down
Increasing
Slightly volatile
Total Assets119.8 B99.4 B
Fairly Up
Decreasing
Slightly volatile

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

About Allstate Corp 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.

Operating Expenses

6.13 Billion

Allstate Corp Operating Expenses is relatively stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 6.13 Billion

Allstate Corp 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 Allstate Corp. 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 Receivables14.71 B15.72 B15.68 B13.68 B18.39 B18.07 B
Revenues38.52 B39.81 B44.67 B44.79 B50.59 B42.68 B
Total Assets112.42 B112.25 B119.95 B125.99 B99.44 B119.82 B
Property Plant and Equipment Net1.07 B1.04 B1.15 B1.06 B939 M1.09 B
Depreciation Amortization and Accretion483 M511 M647 M686 M1.09 B863.16 M
Selling General and Administrative Expense4.78 B5.22 B5.35 B5.48 B6.25 B6.03 B
Total Liabilities89.87 B90.94 B93.95 B95.77 B74.26 B93.64 B
Total Debt6.35 B6.45 B6.63 B7.83 B7.98 B7.88 B
Operating Income10.06 B8.55 B11.19 B12.61 B14.04 B12.82 B
Net Cash Flow from Operations4.31 B5.17 B5.13 B5.49 B5.12 B4.41 B
Investments82.8 B81.26 B88.36 B59.54 B64.7 B68.17 B
Gross Margin0.380.360.410.460.40.43

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

About Allstate Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Allstate Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Allstate Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Allstate 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.
The Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. The Allstate Corporation was founded in 1931 and is based in Northbrook, Illinois. Allstate Corp operates under InsuranceProperty Casualty classification in the United States and is traded on New York Stock Exchange. It employs 54300 people.

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Our tools can tell you how much better you can do entering a position in Allstate Corp without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Allstate Corp

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Allstate Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Allstate Corp will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Allstate Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Allstate Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Allstate Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Allstate Corp to buy it.
The correlation of Allstate Corp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Allstate Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Allstate Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Allstate Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Allstate Corp Piotroski F Score and Allstate Corp Altman Z Score analysis. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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Is Allstate Corp'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 Allstate Corp. If investors know Allstate 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 Allstate Corp 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
(0.68) 
Market Capitalization
34.6 B
Quarterly Revenue Growth YOY
0.058
Return On Assets
0.002
Return On Equity
0.0023
The market value of Allstate Corp is measured differently than its book value, which is the value of Allstate that is recorded on the company's balance sheet. Investors also form their own opinion of Allstate Corp's value that differs from its market value or its book value, called intrinsic value, which is Allstate Corp'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 Allstate Corp's market value can be influenced by many factors that don't directly affect Allstate Corp'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 Allstate Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Allstate Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allstate Corp'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.