Big 5 Beneish M Score

BGFV -  USA Stock  

USD 12.13  1.05  7.97%

This module uses fundamental data of Big 5 to approximate the value of its Beneish M Score. Big 5 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 Big 5 Piotroski F Score and Big 5 Altman Z Score analysis.
  
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Big 5 Issuance Repayment of Debt Securities is fairly stable at the moment as compared to the past year. Big 5 reported Issuance Repayment of Debt Securities of (3.88 Million) in 2021. Long Term Debt to Equity is likely to climb to 0.30 in 2022, whereas Total Debt is likely to drop slightly above 179.2 M in 2022. Big 5 Revenue to Assets are fairly stable at the moment as compared to the past year. Big 5 reported Revenue to Assets of 2.27 in 2021. Quick Ratio is likely to climb to 0.07 in 2022, whereas Receivables Turnover is likely to drop 75.01 in 2022.
At this time, it appears that Big 5 Sporting is an unlikely manipulator. The earnings manipulation may begin if Big 5'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 Big 5 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 Big 5'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.
-2.76
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.96Focus
Asset QualityN/AFocus
Expense Coverage1.08Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.08Focus
Depreciation Resistance1.0Focus
Net Sales Growth0.98Focus
Financial Leverage Condition0.88Focus

Big 5 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 Big 5'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
Revenues1.1 B1.2 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense319.4 M299.8 M
Notably Up
Increasing
Slightly volatile
Net Cash Flow from Operations58.5 M115.5 M
Way Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion54.4 M84 M
Way Down
Increasing
Slightly volatile
Total Assets631.1 M754 M
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net214.6 M330.5 M
Way Down
Increasing
Slightly volatile
Trade and Non Trade Receivables12.9 M13.7 M
Notably Down
Increasing
Slightly volatile
Total Liabilities391.9 M486.6 M
Significantly Down
Increasing
Slightly volatile
Current Assets399.1 M407.3 M
Fairly Down
Increasing
Slightly volatile
Assets Non Current232 M346.6 M
Way Down
Increasing
Slightly volatile
Current Liabilities238.7 M269.8 M
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current153.2 M216.8 M
Way Down
Increasing
Slightly volatile
Total Debt179.2 M291 M
Way Down
Increasing
Slightly volatile
Debt Current43.2 M80.4 M
Way Down
Increasing
Slightly volatile
Debt Non Current136 M210.6 M
Way Down
Increasing
Slightly volatile
Operating Income80.2 M136 M
Way Down
Increasing
Slightly volatile
Gross Margin0.370.375
Fairly Down
Increasing
Slightly volatile

Big 5 Sporting 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 Big 5's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Big 5 in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Big 5's degree of accounting gimmicks and manipulations.

About Big 5 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

54.4 Million

Share
Big 5 Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Big 5 reported Depreciation Amortization and Accretion of 83.99 Million in 2021

About Big 5 Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Big 5 Sporting's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Big 5 using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Big 5 Sporting 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.
Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. The company was founded in 1955 and is headquartered in El Segundo, California. Big 5 operates under Specialty Retail classification in the United States and is traded on NASDAQ Exchange. It employs 2400 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Big 5 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 Big 5

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 Big 5 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 Big 5 will appreciate offsetting losses from the drop in the long position's value.

Big 5 Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Big 5 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Big 5 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 Big 5 - 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 Big 5 Sporting to buy it.
The correlation of Big 5 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 Big 5 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Big 5 Sporting 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 Big 5 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 Big 5 Piotroski F Score and Big 5 Altman Z Score analysis. Note that the Big 5 Sporting information on this page should be used as a complementary analysis to other Big 5'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Big 5 Sporting price analysis, check to measure Big 5'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 Big 5 is operating at the current time. Most of Big 5's value examination focuses on studying past and present price action to predict the probability of Big 5's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Big 5's price. Additionally, you may evaluate how the addition of Big 5 to your portfolios can decrease your overall portfolio volatility.
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Is Big 5'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 Big 5. If investors know Big 5 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 Big 5 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 Big 5 Sporting is measured differently than its book value, which is the value of Big 5 that is recorded on the company's balance sheet. Investors also form their own opinion of Big 5's value that differs from its market value or its book value, called intrinsic value, which is Big 5'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 Big 5's market value can be influenced by many factors that don't directly affect Big 5'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 Big 5's value and its price as these two are different measures arrived at by different means. Investors typically determine Big 5 value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Big 5'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.