Bank of New York Beneish M Score

BK
 Stock
  

USD 45.22  0.54  1.18%   

This module uses fundamental data of Bank of New York to approximate the value of its Beneish M Score. Bank of New York 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 Bank of New York Piotroski F Score and Bank of New York Altman Z Score analysis.
  
Bank of New York Total Debt is increasing as compared to previous years. The last year's value of Total Debt was reported at 38.25 Billion. The current Issuance Repayment of Debt Securities is estimated to increase to about 1.8 B, while Long Term Debt is projected to decrease to under 23.4 B. Bank of New York Revenue to Assets are decreasing as compared to previous years. The last year's value of Revenue to Assets was reported at 0.036356. The current Asset Turnover is estimated to increase to 0.0446, while Total Assets Per Share are projected to decrease to 444.59.
At this time, it appears that Bank of New York is an unlikely manipulator. The earnings manipulation may begin if Bank of New York'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 Bank of New York 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 Bank of New York'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.
-3.84
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense Coverage0.98Focus
Gross Margin Strengs0.99Focus
Accruals Factor0.98Focus
Depreciation Resistance0.95Focus
Net Sales Growth0.95Focus
Financial Leverage Condition1.02Focus

Bank of New York 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 Bank of New York'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
Selling General and Administrative Expense7.9 B8.4 B
Notably Down
Decreasing
Stable
Revenues15.4 B16.2 B
Sufficiently Down
Increasing
Slightly volatile
Property Plant and Equipment NetB3.4 B
Fairly Down
Increasing
Slightly volatile
Operating Income5.2 B4.9 B
Notably Up
Increasing
Slightly volatile
Net Cash Flow from Operations2.9 B2.8 B
Fairly Up
Increasing
Stable
Total Liabilities351 B401.4 B
Fairly Down
Increasing
Slightly volatile
Investments266.9 B272.5 B
Fairly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion1.8 B1.9 B
Sufficiently Down
Increasing
Slightly volatile
Total Debt41.6 B38.2 B
Significantly Up
Increasing
Slightly volatile
Total Assets390 B444.4 B
Fairly Down
Increasing
Slightly volatile

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

About Bank of New York 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.

Revenues

15.43 Billion

Bank of New York Revenues is increasing as compared to previous years. The last year's value of Revenues was reported at 16.16 Billion

Bank of New York 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 Bank of New York. 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)
Revenues16.62 B19.21 B20.82 B16.94 B16.16 B15.43 B
Total Assets371.76 B362.87 B381.51 B469.63 B444.44 B390.01 B
Property Plant and Equipment Net1.63 B1.83 B3.62 B3.6 B3.43 B3.03 B
Depreciation Amortization and Accretion1.47 B1.34 B1.31 B1.63 B1.87 B1.79 B
Selling General and Administrative Expense8.11 B8.34 B8.19 B8.05 B8.4 B7.89 B
Total Liabilities330.51 B322.24 B340.02 B423.83 B401.4 B351 B
Total Debt49.24 B48.57 B43.46 B37.64 B38.25 B41.62 B
Operating Income5 B5.63 B6.01 B5.26 B4.92 B5.2 B
Net Cash Flow from Operations4.64 B6 B96 M5.04 B2.84 B2.92 B
Investments215.91 B230.04 B221.62 B258.73 B272.48 B266.94 B

Bank of New York ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Bank of New York's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Bank of New York's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Bank of New York Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Bank Of New's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Bank of New York using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Bank Of New 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.
The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company was founded in 1784 and is headquartered in New York, New York. Bank of New York operates under Asset Management classification in the United States and is traded on New York Stock Exchange. It employs 51100 people.

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Our tools can tell you how much better you can do entering a position in Bank of New York 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.

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Pair Trading with Bank of New York

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 Bank of New York 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 Bank of New York will appreciate offsetting losses from the drop in the long position's value.

Moving together with Bank of New York

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The ability to find closely correlated positions to Bank of New York could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bank of New York 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 Bank of New York - 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 Bank Of New to buy it.
The correlation of Bank of New York 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 Bank of New York moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bank of New York 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 Bank of New York 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 Bank of New York Piotroski F Score and Bank of New York Altman Z Score analysis. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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Is Bank of New York'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 Bank of New York. If investors know Bank of New York 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 Bank of New York 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
(0.62) 
Market Capitalization
36.6 B
Quarterly Revenue Growth YOY
0.056
Return On Assets
0.0064
Return On Equity
0.0688
The market value of Bank of New York is measured differently than its book value, which is the value of Bank of New York that is recorded on the company's balance sheet. Investors also form their own opinion of Bank of New York's value that differs from its market value or its book value, called intrinsic value, which is Bank of New York'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 Bank of New York's market value can be influenced by many factors that don't directly affect Bank of New York'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 Bank of New York's value and its price as these two are different measures arrived at by different means. Investors typically determine Bank of New York value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of New York'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.