Bed Bath Beneish M Score

BBBY -  USA Stock  

USD 8.70  0.16  1.87%

This module uses fundamental data of Bed Bath to approximate the value of its Beneish M Score. Bed Bath 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. Continue to Bed Bath Piotroski F Score and Bed Bath Altman Z Score analysis.
  
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Bed Bath Total Debt is fairly stable at the moment as compared to the past year. Bed Bath reported Total Debt of 3.03 Billion in 2021. Debt Current is likely to rise to about 426.1 M in 2022, whereas Long Term Debt to Equity is likely to drop 0.72 in 2022. Bed Bath Interest Coverage is fairly stable at the moment as compared to the past year. Bed Bath reported Interest Coverage of 35.42 in 2021. Calculated Tax Rate is likely to rise to 43.57 in 2022, whereas Inventory Turnover is likely to drop 2.90 in 2022.
At this time, it appears that Bed Bath Beyond is an unlikely manipulator. The earnings manipulation may begin if Bed Bath'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 Bed Bath 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 Bed Bath'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.
-3.82
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset Quality0.7Focus
Expense Coverage0.99Focus
Gross Margin Strengs1.04Focus
Accruals Factor0.99Focus
Depreciation Resistance1.07Focus
Net Sales Growth1.27Focus
Financial Leverage Condition0.88Focus

Bed Bath 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 Bed Bath'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
Revenues10 B7.9 B
Significantly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense3.4 B2.7 B
Significantly Up
Decreasing
Very volatile
Net Cash Flow from Operations320.4 M17.9 M
Way Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion334.8 M293.6 M
Fairly Up
Increasing
Slightly volatile
Total Assets6.8 B5.1 B
Significantly Up
Decreasing
Slightly volatile
Investments223.8 M19.2 M
Way Up
Decreasing
Slightly volatile
Investments Current348 M347.1 M
Slightly Up
Decreasing
Slightly volatile
Investments Non Current20.8 M19.2 M
Significantly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net3.2 B2.6 B
Fairly Up
Increasing
Slightly volatile
Total Liabilities5.8 BB
Fairly Up
Increasing
Slightly volatile
Current Assets3.3 B2.4 B
Significantly Up
Decreasing
Slightly volatile
Assets Non Current3.5 B2.8 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities2.4 B2.1 B
Fairly Up
Increasing
Slightly volatile
Liabilities Non Current3.4 B2.9 B
Fairly Up
Increasing
Slightly volatile
Total Debt3.6 BB
Fairly Up
Increasing
Slightly volatile
Debt Current426.1 M346.5 M
Fairly Up
Increasing
Slightly volatile
Debt Non Current3.2 B2.7 B
Fairly Up
Increasing
Slightly volatile
Operating Income(573.4 M)(389.4 M)
Way Down
Decreasing
Slightly volatile
Gross Margin0.330.316
Sufficiently Up
Decreasing
Slightly volatile

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

About Bed Bath 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

334.81 Million

Share
Bed Bath Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Bed Bath reported Depreciation Amortization and Accretion of 293.63 Million in 2021

About Bed Bath Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Bed Bath Beyond's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Bed Bath using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Bed Bath Beyond 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.
Bed Bath Beyond Inc., together with its subsidiaries, operates a chain of retail stores. Bed Bath Beyond Inc. was incorporated in 1971 and is headquartered in Union, New Jersey. Bed Bath operates under Specialty Retail classification in the United States and is traded on NASDAQ Exchange. It employs 32000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Bed Bath without increasing your portfolio risk or giving up 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 Bed Bath

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 Bed Bath 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 Bed Bath will appreciate offsetting losses from the drop in the long position's value.

Bed Bath Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Bed Bath could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bed Bath 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 Bed Bath - 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 Bed Bath Beyond to buy it.
The correlation of Bed Bath 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 Bed Bath moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bed Bath Beyond 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 Bed Bath 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
Continue to Bed Bath Piotroski F Score and Bed Bath Altman Z Score analysis. Note that the Bed Bath Beyond information on this page should be used as a complementary analysis to other Bed Bath'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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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When running Bed Bath Beyond price analysis, check to measure Bed Bath'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 Bed Bath is operating at the current time. Most of Bed Bath's value examination focuses on studying past and present price action to predict the probability of Bed Bath's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Bed Bath's price. Additionally, you may evaluate how the addition of Bed Bath to your portfolios can decrease your overall portfolio volatility.
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Is Bed Bath'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 Bed Bath. If investors know Bed Bath 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 Bed Bath listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Bed Bath Beyond is measured differently than its book value, which is the value of Bed Bath that is recorded on the company's balance sheet. Investors also form their own opinion of Bed Bath's value that differs from its market value or its book value, called intrinsic value, which is Bed Bath'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 Bed Bath's market value can be influenced by many factors that don't directly affect Bed Bath'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 Bed Bath's value and its price as these two are different measures arrived at by different means. Investors typically determine Bed Bath value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bed Bath'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.