Better Beneish M Score

BTTR -  USA Stock  

USD 2.78  0.17  5.76%

This module uses fundamental data of Better Choice to approximate the value of its Beneish M Score. Better Choice 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 Better Choice Piotroski F Score and Better Choice Altman Z Score analysis.

Better Beneish M Score 

 
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Better Choice Total Debt is relatively stable at the moment as compared to the past year. Better Choice reported last year Total Debt of 37.91 Million. As of 01/16/2022, Debt Current is likely to grow to about 10.2 M, while Debt Non Current is likely to drop slightly above 27.1 M. Better Choice Asset Turnover is relatively stable at the moment as compared to the past year. Better Choice reported last year Asset Turnover of 0.97. As of 01/16/2022, Gross Margin is likely to grow to 0.44, while Current Ratio is likely to drop 0.32.
At this time, it appears that Better Choice is an unlikely manipulator. The earnings manipulation may begin if Better Choice'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 Better Choice 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 Better Choice'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.
-4.25
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
0.75
Asset Quality
N/A
Expense Coverage
1.0
Gross Margin Strengs
1.29
Accruals Factor
1.0
Depreciation Resistance
1.0
Net Sales Growth
1.08
Financial Leverage Condition
1.0

Better Choice 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 Better Choice'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
Revenues52.8 M49 M
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense42 M38.9 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion2.2 MM
Significantly Up
Increasing
Slightly volatile
Total Assets63.6 M58.9 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net740.8 K686.5 K
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables4.3 M5.3 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities98.5 M91.3 M
Significantly Up
Increasing
Slightly volatile
Current Assets21.8 M20.2 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current41.8 M38.7 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities67.7 M62.8 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current27.1 M28.5 M
Notably Down
Increasing
Slightly volatile
Total Debt40.9 M37.9 M
Significantly Up
Increasing
Slightly volatile
Debt Current10.2 M9.4 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current27.1 M28.5 M
Notably Down
Increasing
Slightly volatile
Gross Margin0.440.34
Significantly Up
Decreasing
Slightly volatile

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

About Better Choice 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

2.17 MillionShare
Better Choice Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. Better Choice reported last year Depreciation Amortization and Accretion of 2.01 Million

About Better Choice Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Better Choice's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Better Choice using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Better Choice 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.
Better Choice Company Inc. operates as an animal health and wellness company. The company was founded in 1986 and is headquartered in Oldsmar, Florida. Better Choice operates under Packaged Foods classification in the United States and is traded on NYSEMKT Exchange. It employs 45 people.

Better Choice Investors Sentiment

The influence of Better Choice's 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 Better. 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.

Better Choice Implied Volatility

    
  153.48  
Better Choice's implied volatility exposes the market's sentiment of Better Choice stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Better Choice's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Better Choice stock will not fluctuate a lot when Better Choice's options are near their expiration.
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 Better Choice 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, Better Choice's short interest history, or implied volatility extrapolated from Better Choice options trading.

Current Sentiment - BTTR

Better Choice Investor Sentiment

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Continue to Better Choice Piotroski F Score and Better Choice Altman Z Score analysis. Note that the Better Choice information on this page should be used as a complementary analysis to other Better Choice'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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