Berkeley Beneish M Score

BLI
 Stock
  

USD 5.18  0.08  1.52%   

This module uses fundamental data of Berkeley Lights to approximate the value of its Beneish M Score. Berkeley Lights 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 Berkeley Lights Piotroski F Score and Berkeley Lights Altman Z Score analysis.
  
The current Total Debt is estimated to decrease to about 41.5 M. The current Debt Current is estimated to decrease to about 12 M. Berkeley Lights Sales per Share is most likely to drop in the upcoming years. The last year's value of Sales per Share was reported at 1.28. The current Tangible Assets Book Value per Share is estimated to increase to 4.42, while Debt to Equity Ratio is projected to decrease to 0.36.
At this time, it appears that Berkeley Lights is an unlikely manipulator. The earnings manipulation may begin if Berkeley Lights' 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 Berkeley Lights 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 Berkeley Lights' 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.
-3.32
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.93Focus
Asset QualityN/AFocus
Expense Coverage0.89Focus
Gross Margin Strengs0.98Focus
Accruals Factor0.89Focus
Depreciation Resistance0.88Focus
Net Sales Growth0.93Focus
Financial Leverage Condition0.97Focus

Berkeley Lights 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 Berkeley Lights' 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
Revenues79.3 M85.4 M
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense56.9 M68.8 M
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion7.9 M7.9 M
Slightly Down
Increasing
Slightly volatile
Total Assets274.5 M287.3 M
Sufficiently Down
Increasing
Slightly volatile
Property Plant and Equipment Net46.3 M54.1 M
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables22.3 M25.9 M
Fairly Down
Increasing
Slightly volatile
Total Liabilities73.1 M79 M
Significantly Down
Increasing
Slightly volatile
Current Assets225.6 M230.6 M
Fairly Down
Increasing
Slightly volatile
Assets Non Current48.8 M56.7 M
Fairly Down
Increasing
Slightly volatile
Current Liabilities32 M32.8 M
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current41.1 M46.3 M
Fairly Down
Increasing
Slightly volatile
Total Debt41.5 M44.1 M
Notably Down
Increasing
Slightly volatile
Debt Current12 M13.3 M
Moderately Down
Increasing
Slightly volatile
Debt Non Current39 M44.1 M
Fairly Down
Increasing
Slightly volatile
Gross Margin0.650.662
Fairly Down
Decreasing
Slightly volatile

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

About Berkeley Lights 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

112.84 Million

Berkeley Lights Operating Expenses is most likely to increase significantly in the upcoming years. The last year's value of Operating Expenses was reported at 127.34 Million

About Berkeley Lights Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Berkeley Lights's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Berkeley Lights using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Berkeley Lights 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.
Berkeley Lights, Inc., a digital cell biology company, focuses on enabling and accelerating the rapid development and commercialization of biotherapeutics and other cell-based products. Berkeley Lights, Inc. was incorporated in 2011 and is headquartered in Emeryville, California. Berkeley Lights operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 293 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Berkeley Lights 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 Berkeley Lights

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 Berkeley Lights 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 Berkeley Lights will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Berkeley Lights could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Berkeley Lights 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 Berkeley Lights - 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 Berkeley Lights to buy it.
The correlation of Berkeley Lights 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 Berkeley Lights moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Berkeley Lights 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 Berkeley Lights 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 Berkeley Lights Piotroski F Score and Berkeley Lights Altman Z Score analysis. Note that the Berkeley Lights information on this page should be used as a complementary analysis to other Berkeley Lights' 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 Shere Portfolio module to track or share privately all of your investments from the convenience of any device.

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Is Berkeley Lights' 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 Berkeley Lights. If investors know Berkeley 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 Berkeley Lights 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 Berkeley Lights is measured differently than its book value, which is the value of Berkeley that is recorded on the company's balance sheet. Investors also form their own opinion of Berkeley Lights' value that differs from its market value or its book value, called intrinsic value, which is Berkeley Lights' 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 Berkeley Lights' market value can be influenced by many factors that don't directly affect Berkeley Lights' 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 Berkeley Lights' value and its price as these two are different measures arrived at by different means. Investors typically determine Berkeley Lights value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Berkeley Lights' 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.