Destination Beneish M Score

DXLG
 Stock
  

USD 4.28  0.09  2.15%   

This module uses fundamental data of Destination to approximate the value of its Beneish M Score. Destination 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 Destination Piotroski F Score and Destination Altman Z Score analysis.
  
The current year Debt Current is expected to grow to about 44.4 M, whereas Total Debt is forecasted to decline to about 117.8 M. Destination PPandE Turnover is projected to increase slightly based on the last few years of reporting. The past year's PPandE Turnover was at 4.28. The current year Receivables Turnover is expected to grow to 101.12, whereas Operating Margin is forecasted to decline to (2.51) .
At this time, it appears that Destination XL Group is an unlikely manipulator. The earnings manipulation may begin if Destination'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 Destination 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 Destination'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.
-2.5
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.78Focus
Asset QualityN/AFocus
Expense Coverage1.1Focus
Gross Margin Strengs1.01Focus
Accruals Factor1.1Focus
Depreciation Resistance0.75Focus
Net Sales Growth0.96Focus
Financial Leverage Condition0.85Focus

Destination 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 Destination'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
Revenues483.7 M505 M
Sufficiently Down
Increasing
Slightly volatile
Selling General and Administrative Expense183 M173 M
Notably Up
Increasing
Slightly volatile
Net Cash Flow from Operations47 M75.5 M
Way Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion21.7 M17.2 M
Significantly Up
Decreasing
Stable
Total Assets291.7 M280 M
Sufficiently Up
Increasing
Slightly volatile
Property Plant and Equipment Net156.4 M172.3 M
Moderately Down
Increasing
Slightly volatile
Trade and Non Trade Receivables3.6 M2.1 M
Way Up
Decreasing
Very volatile
Total Liabilities214.6 M221.7 M
Sufficiently Down
Increasing
Slightly volatile
Current Assets131.1 M106 M
Fairly Up
Decreasing
Slightly volatile
Assets Non Current160.6 M174 M
Significantly Down
Increasing
Slightly volatile
Current Liabilities110.8 M95.5 M
Fairly Up
Increasing
Stable
Liabilities Non Current103.8 M126.3 M
Significantly Down
Increasing
Slightly volatile
Total Debt117.8 M155.6 M
Way Down
Increasing
Slightly volatile
Debt Current44.4 M35.2 M
Significantly Up
Increasing
Stable
Debt Non Current73.4 M120.4 M
Way Down
Increasing
Slightly volatile
Operating Income28 M62 M
Way Down
Increasing
Slightly volatile
Gross Margin0.50.495
Fairly Up
Increasing
Slightly volatile

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

About Destination 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

21.7 Million

Destination Depreciation Amortization and Accretion is projected to decrease significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 17.23 Million

About Destination Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Destination XL Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Destination using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Destination XL Group 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.
Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall mens clothing and shoes in the United States and Canada. Destination XL Group, Inc. was incorporated in 1976 and is headquartered in Canton, Massachusetts. Destination operates under Apparel Retail classification in the United States and is traded on NASDAQ Exchange. It employs 1353 people.

Be your own money manager

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

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

Moving together with Destination

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The ability to find closely correlated positions to Destination could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Destination 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 Destination - 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 Destination XL Group to buy it.
The correlation of Destination 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 Destination moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Destination XL Group 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 Destination 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 Destination Piotroski F Score and Destination Altman Z Score analysis. Note that the Destination XL Group information on this page should be used as a complementary analysis to other Destination'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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Complementary Tools for Destination Stock analysis

When running Destination XL Group price analysis, check to measure Destination'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 Destination is operating at the current time. Most of Destination's value examination focuses on studying past and present price action to predict the probability of Destination's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Destination's price. Additionally, you may evaluate how the addition of Destination to your portfolios can decrease your overall portfolio volatility.
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Is Destination'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 Destination. If investors know Destination 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 Destination 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
0.43
Market Capitalization
262.5 M
Quarterly Revenue Growth YOY
0.14
Return On Assets
0.14
Return On Equity
1.58
The market value of Destination XL Group is measured differently than its book value, which is the value of Destination that is recorded on the company's balance sheet. Investors also form their own opinion of Destination's value that differs from its market value or its book value, called intrinsic value, which is Destination'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 Destination's market value can be influenced by many factors that don't directly affect Destination'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 Destination's value and its price as these two are different measures arrived at by different means. Investors typically determine Destination value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Destination'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.