Brickell Beneish M Score

BBI
 Stock
  

USD 3.57  0.41  10.30%   

This module uses fundamental data of Brickell Biotech to approximate the value of its Beneish M Score. Brickell Biotech 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 Brickell Biotech Piotroski F Score and Brickell Biotech Altman Z Score analysis.
  
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Brickell Biotech Issuance Repayment of Debt Securities is most likely to in the upcoming years. The last year's value of Issuance Repayment of Debt Securities was reported at 502,550. The current Debt to Equity Ratio is estimated to increase to 0.23, while Debt Non Current is projected to decrease to roughly 151.8 K. Brickell Biotech Accrued Expenses Turnover is most likely to slightly decrease in the upcoming years. The last year's value of Accrued Expenses Turnover was reported at 0.52. The current Cash and Equivalents Turnover is estimated to increase to 0.08, while Operating Margin is projected to decrease to (120.19) .
At this time, it appears that Brickell Biotech is an unlikely manipulator. The earnings manipulation may begin if Brickell Biotech'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 Brickell Biotech 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 Brickell Biotech'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.
-3.35
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.88Focus
Asset Quality0.41Focus
Expense Coverage0.95Focus
Gross Margin Strengs0.81Focus
Accruals Factor0.95Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.03Focus
Financial Leverage Condition0.82Focus

Brickell Biotech 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 Brickell Biotech'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
Revenues414.6 K404 K
Fairly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense12.1 M12.4 M
Fairly Down
Increasing
Stable
Net Cash Flow from Operations(37.1 M)(36.1 M)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion22.6 K22 K
Fairly Up
Decreasing
Slightly volatile
Total Assets37.2 M29.7 M
Significantly Up
Decreasing
Slightly volatile
Investments4.2 MM
Fairly Up
Decreasing
Slightly volatile
Investments Current5.3 M5.2 M
Fairly Up
Decreasing
Slightly volatile
Investments Non Current2.2 MM
Significantly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net120.1 K117 K
Fairly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables5.3 M5.9 M
Moderately Down
Increasing
Slightly volatile
Total Liabilities4.9 M4.8 M
Fairly Up
Increasing
Very volatile
Current Assets35 M29.6 M
Fairly Up
Decreasing
Slightly volatile
Assets Non Current120.1 K117 K
Fairly Up
Decreasing
Slightly volatile
Current Liabilities7.3 M4.8 M
Way Up
Increasing
Stable
Liabilities Non Current134.9 K131.4 K
Fairly Up
Decreasing
Slightly volatile
Total Debt403.6 K393.3 K
Fairly Up
Decreasing
Slightly volatile
Debt Current268.8 K261.9 K
Fairly Up
Decreasing
Slightly volatile
Debt Non Current151.8 K167.9 K
Moderately Down
Increasing
Slightly volatile
Gross Margin0.931.15
Significantly Down
Increasing
Slightly volatile

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

About Brickell Biotech 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

35.9 Million

Brickell Biotech Operating Expenses is most likely to increase significantly in the upcoming years. The last year's value of Operating Expenses was reported at 40.65 Million

Brickell Biotech 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 Brickell Biotech. 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)
Revenues13.82 M10.89 M7.92 M1.82 M404 K414.63 K
Total Assets80.49 M8.75 M18.14 M33.63 M29.72 M37.17 M
Current Assets76.32 M8.27 M17.97 M33.53 M29.6 M34.99 M
Assets Non Current4.18 M478 K175 K104 K117 K120.08 K
Total Liabilities16.92 M22.08 M10.57 M6.5 M4.81 M4.94 M
Current Liabilities16.92 M20.09 M10.5 M6.35 M4.81 M7.32 M
Operating Income(13.39 M)(8.45 M)(24.47 M)(20.98 M)(40.24 M)(41.3 M)
Investments25.31 M32.6 M37.87 M4.5 M4.05 M4.15 M
Investments Current23.26 M30.55 M35.66 M4.5 M5.17 M5.31 M
Gross Margin0.480.570.531.01.150.93

About Brickell Biotech Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Brickell Biotech's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Brickell Biotech using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Brickell Biotech 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.
Brickell Biotech, Inc., a clinical-stage pharmaceutical company, engages in the development of various prescription therapeutics for the treatment of autoimmune, inflammatory, and other debilitating diseases in the United States. The company develops sofpironium bromide, which has completed Phase III clinical trials for the treatment of primary axillary hyperhidrosis BBI-02, an oral DYRK1A inhibitor for the treatment of autoimmune and inflammatory diseases and BBI-10, a covalent stimulator of interferon genes inhibitor for the potential treatment of autoinflammatory and rare genetic diseases, as well as next-generation kinase inhibitors. It has license and collaboration agreements with Carna Biosciences, Inc., Voronoi Inc., Bodor Laboratories, Inc. and Dr. Nicholas S. Bodor, and AnGes, Inc. The company was founded in 2009 and is headquartered in Boulder, Colorado.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Brickell Biotech 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 Brickell Biotech

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 Brickell Biotech 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 Brickell Biotech will appreciate offsetting losses from the drop in the long position's value.

Brickell Biotech Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Brickell Biotech could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brickell Biotech 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 Brickell Biotech - 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 Brickell Biotech to buy it.
The correlation of Brickell Biotech 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 Brickell Biotech moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brickell Biotech 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 Brickell Biotech 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 Brickell Biotech Piotroski F Score and Brickell Biotech Altman Z Score analysis. Note that the Brickell Biotech information on this page should be used as a complementary analysis to other Brickell Biotech'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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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When running Brickell Biotech price analysis, check to measure Brickell Biotech'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 Brickell Biotech is operating at the current time. Most of Brickell Biotech's value examination focuses on studying past and present price action to predict the probability of Brickell Biotech's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Brickell Biotech's price. Additionally, you may evaluate how the addition of Brickell Biotech to your portfolios can decrease your overall portfolio volatility.
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Is Brickell Biotech'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 Brickell Biotech. If investors know Brickell 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 Brickell Biotech listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
11.7 M
Quarterly Revenue Growth YOY
4.41
Return On Assets
-0.85
Return On Equity
-1.76
The market value of Brickell Biotech is measured differently than its book value, which is the value of Brickell that is recorded on the company's balance sheet. Investors also form their own opinion of Brickell Biotech's value that differs from its market value or its book value, called intrinsic value, which is Brickell Biotech'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 Brickell Biotech's market value can be influenced by many factors that don't directly affect Brickell Biotech'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 Brickell Biotech's value and its price as these two are different measures arrived at by different means. Investors typically determine Brickell Biotech value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brickell Biotech'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.