Beam Therapeutics Beneish M Score

BEAM
 Stock
  

USD 43.01  1.27  2.87%   

This module uses fundamental data of Beam Therapeutics to approximate the value of its Beneish M Score. Beam Therapeutics 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 Beam Therapeutics Piotroski F Score and Beam Therapeutics Altman Z Score analysis.
  
Beam Therapeutics Long Term Debt to Equity is relatively stable at the moment as compared to the past year. The company's current value of Long Term Debt to Equity is estimated at 0.003733. Debt to Equity Ratio is expected to hike to 0.006572 this year, although the value of Total Debt will most likely fall to nearly 121.2 M. Beam Therapeutics Net Current Assets as percentage of Total Assets are relatively stable at the moment as compared to the past year. The company's current value of Net Current Assets as percentage of Total Assets is estimated at 77.54. Book Value per Share is expected to hike to 13.89 this year, although the value of Total Assets Per Share will most likely fall to 18.56.
At this time, it appears that Beam Therapeutics is an unlikely manipulator. The earnings manipulation may begin if Beam Therapeutics' 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 Beam Therapeutics 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 Beam Therapeutics' 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.
-3.61
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.92Focus
Asset Quality0.74Focus
Expense Coverage1.0Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition0.96Focus

Beam Therapeutics 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 Beam Therapeutics' 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 Expense61.7 M57.2 M
Significantly Up
Increasing
Slightly volatile
Revenues55.9 M51.8 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables268.4 M270 M
Slightly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net201.7 M187 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current468.6 M434.3 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities230.3 M213.4 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities698.9 M647.7 M
Significantly Up
Increasing
Slightly volatile
Investments Current328.9 M405.7 M
Significantly Down
Increasing
Slightly volatile
Investments328.9 M405.7 M
Significantly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and AccretionM7.5 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current123.6 M137.8 M
Moderately Down
Increasing
Slightly volatile
Debt Current8.9 M9.8 M
Moderately Down
Decreasing
Slightly volatile
Total Debt121.2 M147.6 M
Significantly Down
Increasing
Slightly volatile
Assets Non Current217.3 M201.4 M
Significantly Up
Increasing
Slightly volatile
Current Assets1.4 B1.3 B
Significantly Up
Increasing
Slightly volatile
Total Assets1.6 B1.5 B
Significantly Up
Increasing
Slightly volatile

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

About Beam Therapeutics 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

8.04 Million

Beam Therapeutics Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 8.04 Million

About Beam Therapeutics Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Beam Therapeutics's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Beam Therapeutics using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Beam Therapeutics 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.
Beam Therapeutics Inc., a biotechnology company, develops precision genetic medicines for patients suffering from serious diseases in the United States. The company was incorporated in 2017 and is based in Cambridge, Massachusetts. Beam Therapeutics operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 507 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Beam Therapeutics 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.

Did you try this?

Run Insider Screener Now

   

Insider Screener

Find insiders across different sectors to evaluate their impact on performance
All  Next Launch Module

Pair Trading with Beam Therapeutics

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 Beam Therapeutics 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 Beam Therapeutics will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Beam Therapeutics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Beam Therapeutics 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 Beam Therapeutics - 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 Beam Therapeutics to buy it.
The correlation of Beam Therapeutics 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 Beam Therapeutics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Beam Therapeutics 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 Beam Therapeutics 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 Beam Therapeutics Piotroski F Score and Beam Therapeutics Altman Z Score analysis. Note that the Beam Therapeutics information on this page should be used as a complementary analysis to other Beam Therapeutics' 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Complementary Tools for Beam Therapeutics Stock analysis

When running Beam Therapeutics price analysis, check to measure Beam Therapeutics' 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 Beam Therapeutics is operating at the current time. Most of Beam Therapeutics' value examination focuses on studying past and present price action to predict the probability of Beam Therapeutics' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Beam Therapeutics' price. Additionally, you may evaluate how the addition of Beam Therapeutics to your portfolios can decrease your overall portfolio volatility.
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Is Beam Therapeutics' 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 Beam Therapeutics. If investors know Beam Therapeutics 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 Beam Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
3.1 B
Quarterly Revenue Growth YOY
19.71
Return On Assets
(0.08) 
Return On Equity
(0.40) 
The market value of Beam Therapeutics is measured differently than its book value, which is the value of Beam Therapeutics that is recorded on the company's balance sheet. Investors also form their own opinion of Beam Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Beam Therapeutics' 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 Beam Therapeutics' market value can be influenced by many factors that don't directly affect Beam Therapeutics' 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 Beam Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine Beam Therapeutics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Beam Therapeutics' 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.