Dupont Beneish M Score

DD
 Stock
  

USD 54.75  0.83  1.49%   

This module uses fundamental data of Dupont Denemours to approximate the value of its Beneish M Score. Dupont Denemours 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 Dupont Denemours Piotroski F Score and Dupont Denemours Altman Z Score analysis.
  
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Dupont Denemours Debt Current is projected to decrease significantly based on the last few years of reporting. The past year's Debt Current was at 150 Million. The current year Debt Non Current is expected to grow to about 13 B, whereas Issuance Repayment of Debt Securities is forecasted to decline to (3.7 B). Dupont Denemours Operating Margin is projected to increase significantly based on the last few years of reporting. The past year's Operating Margin was at 14.80. The current year Cash Flow Per Share is expected to grow to 4.98, whereas Quick Ratio is forecasted to decline to 0.92.
At this time, it appears that Dupont Denemours is an unlikely manipulator. The earnings manipulation may begin if Dupont Denemours' 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 Dupont Denemours 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 Dupont Denemours' 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.
-2.37
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.7Focus
Asset Quality1.0Focus
Expense Coverage0.75Focus
Gross Margin Strengs0.91Focus
Accruals Factor0.75Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.47Focus
Financial Leverage Condition1.09Focus

Dupont Denemours 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 Dupont Denemours' 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
Revenues24.4 B16.7 B
Way Up
Decreasing
Slightly volatile
Selling General and Administrative ExpenseB1.9 B
Significantly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations2.7 B2.3 B
Fairly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion1.5 B1.5 B
Fairly Up
Decreasing
Very volatile
Total Assets46.9 B45.7 B
Fairly Up
Increasing
Very volatile
Investments943.2 M919 M
Fairly Up
Decreasing
Slightly volatile
Investments Current34.2 M33.4 M
Fairly Up
Decreasing
Slightly volatile
Investments Non Current943.2 M919 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net5.9 B5.8 B
Fairly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables2.2 B2.2 B
Fairly Up
Decreasing
Slightly volatile
Total Liabilities19.1 B18.7 B
Fairly Up
Decreasing
Stable
Current Assets14.7 B14.3 B
Fairly Up
Increasing
Very volatile
Assets Non Current49 B31.4 B
Way Up
Increasing
Very volatile
Current Liabilities5.1 B4.9 B
Fairly Up
Increasing
Very volatile
Liabilities Non Current20.2 B13.7 B
Way Up
Decreasing
Slightly volatile
Total Debt13.7 B10.8 B
Significantly Up
Decreasing
Slightly volatile
Debt Current153.9 M150 M
Fairly Up
Decreasing
Slightly volatile
Debt Non Current13 B10.6 B
Fairly Up
Decreasing
Slightly volatile
Operating Income2.6 B2.6 B
Slightly Up
Decreasing
Slightly volatile
Gross Margin0.320.351
Significantly Down
Increasing
Slightly volatile

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

About Dupont Denemours 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.

Cost of Revenue

11.09 Billion

Share
Dupont Denemours Cost of Revenue is projected to decrease significantly based on the last few years of reporting. The past year's Cost of Revenue was at 10.8 Billion

Dupont Denemours 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 Dupont Denemours. 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)
Revenues11.67 B22.59 B15.44 B14.34 B16.65 B24.45 B
Total Assets192.16 B187.85 B69.35 B70.9 B45.71 B46.91 B
Current Assets49.89 B126.66 B10 B29.01 B14.3 B14.68 B
Assets Non Current142.27 B61.2 B59.35 B41.9 B31.4 B48.98 B
Total Liabilities90.24 B91.95 B27.79 B31.83 B18.66 B19.15 B
Current Liabilities26.13 B73.31 B8.35 B12.23 B4.93 B5.06 B
Total Debt34.07 B12.64 B17.45 B15.61 B10.78 B13.69 B
Debt Current4.01 B15 M3.83 B1,000 K150 M153.95 M
Debt Non Current30.06 B12.62 B13.62 B15.61 B10.63 B12.98 B
Operating Income(1.89 B)208 M456 M(1.76 B)2.63 B2.64 B
Investments9.54 B1.85 B1.26 B1.05 B919 M943.18 M

About Dupont Denemours Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Dupont Denemours's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Dupont Denemours using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Dupont Denemours 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.
DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. DuPont de Nemours, Inc. is headquartered in Wilmington, Delaware. Dupont Denemours operates under Specialty Chemicals classification in the United States and is traded on New York Stock Exchange. It employs 28000 people.

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

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

Dupont Denemours Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Dupont Denemours could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dupont Denemours 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 Dupont Denemours - 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 Dupont Denemours to buy it.
The correlation of Dupont Denemours 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 Dupont Denemours moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dupont Denemours 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 Dupont Denemours 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 Dupont Denemours Piotroski F Score and Dupont Denemours Altman Z Score analysis. Note that the Dupont Denemours information on this page should be used as a complementary analysis to other Dupont Denemours' 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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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Is Dupont Denemours' 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 Dupont Denemours. If investors know Dupont 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 Dupont Denemours 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
-0.89
Market Capitalization
27.8 B
Quarterly Revenue Growth YOY
0.085
Return On Assets
0.036
Return On Equity
0.0605
The market value of Dupont Denemours is measured differently than its book value, which is the value of Dupont that is recorded on the company's balance sheet. Investors also form their own opinion of Dupont Denemours' value that differs from its market value or its book value, called intrinsic value, which is Dupont Denemours' 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 Dupont Denemours' market value can be influenced by many factors that don't directly affect Dupont Denemours' 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 Dupont Denemours' value and its price as these two are different measures arrived at by different means. Investors typically determine Dupont Denemours value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dupont Denemours' 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.