Cytokinetics Beneish M Score

CYTK
 Stock
  

USD 41.00  1.71  4.35%   

This module uses fundamental data of Cytokinetics to approximate the value of its Beneish M Score. Cytokinetics 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 Cytokinetics Piotroski F Score and Cytokinetics Altman Z Score analysis.
  
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Cytokinetics Issuance Repayment of Debt Securities is as compared to previous years. The last year's value of Issuance Repayment of Debt Securities was reported at 140.51 Million. The current Debt to Equity Ratio is estimated to increase to 2.64, while Long Term Debt to Equity is projected to decrease to 0.56. Cytokinetics Revenue to Assets are decreasing as compared to previous years. The last year's value of Revenue to Assets was reported at 0.08. The current Total Assets Per Share is estimated to increase to 10.71, while Cash and Equivalents Turnover is projected to decrease to 0.67.
At this time, it appears that Cytokinetics is an unlikely manipulator. The earnings manipulation may begin if Cytokinetics' 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 Cytokinetics 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 Cytokinetics' 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.
-2.62
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.28Focus
Asset Quality1.0Focus
Expense Coverage1.28Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.28Focus
Depreciation Resistance1.31Focus
Net Sales Growth0.84Focus
Financial Leverage Condition1.0Focus

Cytokinetics 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 Cytokinetics' 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
Revenues59.3 M70.4 M
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense104.4 M96.8 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations(146.3 M)(142.5 M)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion1.9 M2.3 M
Significantly Down
Increasing
Slightly volatile
Total Assets907.7 M841.3 M
Significantly Up
Increasing
Slightly volatile
Investments551.4 M511 M
Significantly Up
Increasing
Slightly volatile
Investments Current387.3 M359 M
Significantly Up
Increasing
Slightly volatile
Investments Non Current164.1 M152.1 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net158 M146.4 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables55.9 M51.8 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities644.6 M597.5 M
Significantly Up
Increasing
Slightly volatile
Current Assets578 M535.7 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current329.8 M305.6 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities77.5 M71.9 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current567.1 M525.6 M
Significantly Up
Increasing
Slightly volatile
Total Debt291.2 M269.9 M
Significantly Up
Increasing
Slightly volatile
Debt Current16 M14.9 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current275.2 M255.1 M
Significantly Up
Increasing
Slightly volatile
Operating Income(191.2 M)(186.3 M)
Fairly Down
Decreasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Cytokinetics 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

1.87 Million

Share
Cytokinetics Depreciation Amortization and Accretion is increasing as compared to previous years. The last year's value of Depreciation Amortization and Accretion was reported at 2.28 Million

Cytokinetics 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 Cytokinetics. 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)
Revenues13.37 M31.5 M26.87 M55.83 M70.43 M59.29 M
Total Assets294.81 M211.18 M289.81 M533.8 M841.32 M907.74 M
Current Assets274.3 M207.67 M233.75 M474.22 M535.67 M577.96 M
Assets Non Current20.52 M3.5 M56.06 M59.58 M305.65 M329.78 M
Total Liabilities184.97 M185.24 M300.75 M420.42 M597.46 M644.62 M
Current Liabilities32.44 M22.19 M26.02 M31.2 M71.86 M77.53 M
Total Debt31.78 M43.18 M136.07 M138.94 M269.93 M291.24 M
Debt Non Current31.78 M40.58 M131.45 M136.15 M255.07 M275.2 M
Operating Income(113.4 M)(88.92 M)(98.87 M)(93.94 M)(186.31 M)(191.22 M)
Investments160.2 M156.47 M231.33 M418.03 M511.02 M551.37 M
Investments Current143.69 M156.47 M188.68 M381.07 M358.97 M387.31 M

About Cytokinetics Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Cytokinetics's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Cytokinetics using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Cytokinetics 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.
Cytokinetics, Incorporated, a late-stage biopharmaceutical company, focuses on discovering, developing, and commercializing muscle activators and inhibitors as potential treatments for debilitating diseases. The company was incorporated in 1997 and is headquartered in South San Francisco, California. Cytokinetics operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 253 people.

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

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

Cytokinetics Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Cytokinetics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cytokinetics 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 Cytokinetics - 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 Cytokinetics to buy it.
The correlation of Cytokinetics 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 Cytokinetics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cytokinetics 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 Cytokinetics 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 Cytokinetics Piotroski F Score and Cytokinetics Altman Z Score analysis. Note that the Cytokinetics information on this page should be used as a complementary analysis to other Cytokinetics' 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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Is Cytokinetics' 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 Cytokinetics. If investors know Cytokinetics 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 Cytokinetics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
3.5 B
Quarterly Revenue Growth YOY
-0.82
Return On Assets
-0.19
Return On Equity
-2.8
The market value of Cytokinetics is measured differently than its book value, which is the value of Cytokinetics that is recorded on the company's balance sheet. Investors also form their own opinion of Cytokinetics' value that differs from its market value or its book value, called intrinsic value, which is Cytokinetics' 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 Cytokinetics' market value can be influenced by many factors that don't directly affect Cytokinetics' 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 Cytokinetics' value and its price as these two are different measures arrived at by different means. Investors typically determine Cytokinetics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cytokinetics' 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.