BG Foods Beneish M Score

BGS
 Stock
  

USD 12.81  0.18  1.39%   

This module uses fundamental data of BG Foods to approximate the value of its Beneish M Score. BG Foods 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 BG Foods Piotroski F Score and BG Foods Altman Z Score analysis.
  
BG Foods Long Term Debt to Equity is relatively stable at the moment as compared to the past year. BG Foods reported last year Long Term Debt to Equity of 2.46. As of 12/05/2022, Debt to Equity Ratio is likely to grow to 2.62, while Total Debt is likely to drop slightly above 2.1 B. BG Foods Return on Investment is relatively stable at the moment as compared to the past year. BG Foods reported last year Return on Investment of 6.17. As of 12/05/2022, Total Assets Per Share is likely to grow to 57.59, while Receivables Turnover is likely to drop 14.54.
At this time, it appears that BG Foods is an unlikely manipulator. The earnings manipulation may begin if BG Foods' 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 BG Foods 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 BG Foods' 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.
-2.58
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.01Focus
Asset QualityN/AFocus
Expense Coverage0.99Focus
Gross Margin Strengs1.21Focus
Accruals Factor0.99Focus
Depreciation Resistance1.13Focus
Net Sales Growth0.95Focus
Financial Leverage Condition0.95Focus

BG Foods 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 BG Foods' 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 Expense185.9 M196.2 M
Notably Down
Increasing
Slightly volatile
RevenuesB2.1 B
Sufficiently Down
Increasing
Slightly volatile
Trade and Non Trade Receivables139.2 M145.3 M
Sufficiently Down
Increasing
Slightly volatile
Property Plant and Equipment Net343.1 M406.6 M
Fairly Down
Increasing
Stable
Operating Income229.2 M196.1 M
Fairly Up
Increasing
Slightly volatile
Net Cash Flow from Operations69.3 M93.9 M
Way Down
Decreasing
Very volatile
Liabilities Non Current2.5 B2.7 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities234.6 M244.3 M
Sufficiently Down
Increasing
Slightly volatile
Total Liabilities2.9 B2.9 B
Fairly Up
Increasing
Slightly volatile
Gross Margin25.7721.2505
Fairly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion70.6 M96.9 M
Way Down
Increasing
Stable
Debt Non Current2.1 B2.3 B
Significantly Down
Increasing
Slightly volatile
Debt Current12.1 M12.4 M
Fairly Down
Increasing
Stable
Total Debt2.1 B2.3 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current2.9 BB
Sufficiently Down
Increasing
Slightly volatile
Current Assets905.8 M834.5 M
Significantly Up
Increasing
Slightly volatile
Total Assets3.9 B3.8 B
Fairly Up
Increasing
Slightly volatile

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

About BG Foods 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

219.54 Million

BG Foods Operating Expenses is relatively stable at the moment as compared to the past year. BG Foods reported last year Operating Expenses of 240.89 Million

About BG Foods Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze BG Foods's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of BG Foods using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of BG Foods 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.
BG Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada, and Puerto Rico. BG Foods, Inc. was founded in 1822 and is headquartered in Parsippany, New Jersey. BG Foods operates under Packaged Foods classification in the United States and is traded on New York Stock Exchange. It employs 3096 people.

BG Foods Investors Sentiment

The influence of BG Foods' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in BG Foods. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to BG Foods' public news can be used to forecast risks associated with investment in BG Foods. The trend in average sentiment can be used to explain how an investor holding BG Foods can time the market purely based on public headlines and social activities around BG Foods. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
BG Foods' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for BG Foods' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average BG Foods' news discussions. The higher the estimated score, the more favorable is the investor's outlook on BG Foods.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards BG Foods in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, BG Foods' short interest history, or implied volatility extrapolated from BG Foods options trading.

Pair Trading with BG Foods

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 BG Foods 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 BG Foods will appreciate offsetting losses from the drop in the long position's value.

Moving against BG Foods

-0.65PPERYBank Mandiri Persero Upward RallyPairCorr
-0.58JPMJPMorgan Chase Fiscal Year End 13th of January 2023 PairCorr
The ability to find closely correlated positions to BG Foods could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BG Foods 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 BG Foods - 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 BG Foods to buy it.
The correlation of BG Foods 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 BG Foods moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BG Foods 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 BG Foods 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 BG Foods Piotroski F Score and BG Foods Altman Z Score analysis. Note that the BG Foods information on this page should be used as a complementary analysis to other BG Foods' 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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When running BG Foods price analysis, check to measure BG Foods' 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 BG Foods is operating at the current time. Most of BG Foods' value examination focuses on studying past and present price action to predict the probability of BG Foods' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move BG Foods' price. Additionally, you may evaluate how the addition of BG Foods to your portfolios can decrease your overall portfolio volatility.
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Is BG Foods' 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 BG Foods. If investors know BG Foods 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 BG Foods 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
(0.99) 
Market Capitalization
931 M
Quarterly Revenue Growth YOY
0.026
Return On Assets
0.0285
Return On Equity
(0.0484) 
The market value of BG Foods is measured differently than its book value, which is the value of BG Foods that is recorded on the company's balance sheet. Investors also form their own opinion of BG Foods' value that differs from its market value or its book value, called intrinsic value, which is BG Foods' 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 BG Foods' market value can be influenced by many factors that don't directly affect BG Foods' 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 BG Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine BG Foods value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BG Foods' 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.