Coherent Beneish M Score

COHR
 Stock
  

USD 37.77  0.52  1.40%   

This module uses fundamental data of Coherent to approximate the value of its Beneish M Score. Coherent 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 Coherent Piotroski F Score and Coherent Altman Z Score analysis.
  
Coherent Total Debt is relatively stable at the moment as compared to the past year. Coherent reported last year Total Debt of 2.44 Billion. As of 12/03/2022, Debt Current is likely to grow to about 464.8 M, while Long Term Debt to Equity is likely to drop 0.36. Coherent Cash and Equivalents Turnover is relatively stable at the moment as compared to the past year. Coherent reported last year Cash and Equivalents Turnover of 2.68. As of 12/03/2022, Return on Investment is likely to grow to 9.20, while Accrued Expenses Turnover is likely to drop 8.75.
At this time, it appears that Coherent is an unlikely manipulator. The earnings manipulation may begin if Coherent'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 Coherent 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 Coherent'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.
-2.4
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality1.0Focus
Expense Coverage0.76Focus
Gross Margin Strengs0.94Focus
Accruals Factor0.76Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

Coherent 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 Coherent'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 Expense386.3 M474.1 M
Significantly Down
Increasing
Slightly volatile
Revenues3.6 B3.3 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables755.6 M700.3 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net1.5 B1.4 B
Significantly Up
Increasing
Slightly volatile
Operating Income447 M414.3 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations446 M413.3 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current2.4 B2.2 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities1.4 B1.3 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities3.7 B3.5 B
Significantly Up
Increasing
Slightly volatile
Investments Non Current94.6 M87.6 M
Significantly Up
Increasing
Slightly volatile
Investments94.6 M87.6 M
Significantly Up
Increasing
Slightly volatile
Gross Margin35.9238.1562
Notably Down
Increasing
Stable
Depreciation Amortization and Accretion309.4 M286.8 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current2.2 BB
Significantly Up
Increasing
Slightly volatile
Debt Current464.8 M430.8 M
Significantly Up
Increasing
Slightly volatile
Total Debt2.6 B2.4 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current3.8 B3.5 B
Significantly Up
Increasing
Slightly volatile
Current Assets4.6 B4.3 B
Significantly Up
Increasing
Slightly volatile
Total Assets8.5 B7.8 B
Significantly Up
Increasing
Slightly volatile

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

About Coherent 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

309.42 Million

Coherent Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. Coherent reported last year Depreciation Amortization and Accretion of 286.78 Million

Coherent 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 Coherent. 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)
Revenues1.16 B1.36 B2.38 B3.11 B3.32 B3.58 B
Total Assets1.76 B1.95 B5.23 B6.51 B7.84 B8.46 B
Current Assets761.84 M812.91 M1.79 B3.03 B4.31 B4.65 B
Assets Non Current999.82 M1.14 B3.45 B3.49 B3.54 B3.82 B
Total Liabilities737.35 M820.56 M3.16 B2.38 B3.46 B3.73 B
Current Liabilities236.47 M270.56 M672.89 M729.59 M1.27 B1.37 B
Total Debt439.01 M467 M2.37 B1.53 B2.44 B2.63 B
Debt Non Current419.01 M443.16 M2.28 B1.44 B2.01 B2.17 B
Operating Income135.29 M148.67 M39.48 M402.12 M414.29 M447 M
Investments11.35 M11.73 M69.22 M76.21 M87.64 M94.56 M
Gross Margin39.8138.2634.4339.1638.1635.92

About Coherent Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Coherent's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Coherent using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Coherent 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.
Coherent Corp. develops, manufactures, and markets engineered materials, optoelectronic components, and devices worldwide. Coherent Corp. was incorporated in 1971 and is headquartered in Saxonburg, Pennsylvania. Coherent Corp operates under Scientific Technical Instruments classification in the United States and is traded on NASDAQ Exchange. It employs 23658 people.

Be your own money manager

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

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

Moving together with Coherent

+0.74MVISMicrovision Normal TradingPairCorr
The ability to find closely correlated positions to Coherent could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Coherent 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 Coherent - 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 Coherent to buy it.
The correlation of Coherent 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 Coherent moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Coherent 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 Coherent 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 Coherent Piotroski F Score and Coherent Altman Z Score analysis. Note that the Coherent information on this page should be used as a complementary analysis to other Coherent'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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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When running Coherent price analysis, check to measure Coherent'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 Coherent is operating at the current time. Most of Coherent's value examination focuses on studying past and present price action to predict the probability of Coherent's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Coherent's price. Additionally, you may evaluate how the addition of Coherent to your portfolios can decrease your overall portfolio volatility.
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Is Coherent'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 Coherent. If investors know Coherent 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 Coherent 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
(0.61) 
Market Capitalization
6.6 B
Quarterly Revenue Growth YOY
0.69
Return On Assets
0.0299
Return On Equity
0.0214
The market value of Coherent is measured differently than its book value, which is the value of Coherent that is recorded on the company's balance sheet. Investors also form their own opinion of Coherent's value that differs from its market value or its book value, called intrinsic value, which is Coherent'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 Coherent's market value can be influenced by many factors that don't directly affect Coherent'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 Coherent's value and its price as these two are different measures arrived at by different means. Investors typically determine Coherent value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Coherent'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.