Emergent Beneish M Score

EBS
 Stock
  

USD 28.94  0.45  1.53%   

This module uses fundamental data of Emergent Biosolutions to approximate the value of its Beneish M Score. Emergent Biosolutions 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 Emergent Biosolutions Piotroski F Score and Emergent Biosolutions Altman Z Score analysis.
  
As of 08/17/2022, Total Debt is likely to drop to about 668.2 M. In addition to that, Debt Current is likely to drop to about 26.4 M. Emergent Biosolutions Net Current Assets as percentage of Total Assets are relatively stable at the moment as compared to the past year. Emergent Biosolutions reported last year Net Current Assets as percentage of Total Assets of 30.36. As of 08/17/2022, Asset Turnover is likely to grow to 0.63, while PPandE Turnover is likely to drop 2.04.
At this time, it appears that Emergent Biosolutions is an unlikely manipulator. The earnings manipulation may begin if Emergent Biosolutions' 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 Emergent Biosolutions 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 Emergent Biosolutions' 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.
-2.31
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.79Focus
Asset Quality1.01Focus
Expense Coverage0.75Focus
Gross Margin Strengs1.04Focus
Accruals Factor0.75Focus
Depreciation Resistance0.8Focus
Net Sales Growth1.08Focus
Financial Leverage Condition0.98Focus

Emergent Biosolutions 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 Emergent Biosolutions' 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
Revenues1.9 B1.8 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense282.4 M348.4 M
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations256 M321.1 M
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion133.6 M123.8 M
Significantly Up
Increasing
Slightly volatile
Total Assets2.4 BB
Significantly Down
Increasing
Slightly volatile
Investments1.8 M1.8 M
Slightly Down
Decreasing
Slightly volatile
Investments Current1.8 M1.8 M
Slightly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net665.2 M800.1 M
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables235.3 M274.7 M
Fairly Down
Increasing
Slightly volatile
Total Liabilities1.1 B1.3 B
Significantly Down
Increasing
Slightly volatile
Current AssetsB1.3 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current1.4 B1.7 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities403.3 M373.8 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current779.8 M966.2 M
Significantly Down
Increasing
Slightly volatile
Total Debt668.2 M841 M
Significantly Down
Increasing
Slightly volatile
Debt Current26.4 M31.6 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current645.3 M809.4 M
Significantly Down
Increasing
Slightly volatile
Operating Income380.4 M352.6 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.60.577
Sufficiently Up
Decreasing
Slightly volatile

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

About Emergent Biosolutions 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.

Operating Expenses

558.27 Million

Emergent Biosolutions Operating Expenses is relatively stable at the moment as compared to the past year. Emergent Biosolutions reported last year Operating Expenses of 682.6 Million

Emergent Biosolutions 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 Emergent Biosolutions. 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)
Revenues560.9 M782.4 M1.11 B1.56 B1.79 B1.93 B
Total Assets1.07 B2.23 B2.33 B2.88 B2.96 B2.41 B
Current Assets485.4 M620.8 M686.2 M1.2 B1.27 B1.01 B
Assets Non Current584.8 M1.61 B1.64 B1.69 B1.69 B1.39 B
Total Liabilities157.9 M1.22 B1.24 B1.44 B1.34 B1.07 B
Current Liabilities100.1 M200.4 M216.3 M384.5 M373.8 M403.31 M
Total Debt13.5 M794.6 M811.3 M874.8 M841 M668.18 M
Debt Non Current13.5 M784.5 M798.4 M841 M809.4 M645.33 M
Operating Income124.3 M89.8 M114.1 M433.8 M352.6 M380.44 M
Gross Margin0.670.590.610.660.580.6

About Emergent Biosolutions Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Emergent Biosolutions's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Emergent Biosolutions using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Emergent Biosolutions 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.
Emergent BioSolutions Inc., a life sciences company, focuses on the provision of preparedness and response solutions that address accidental, deliberate, and naturally occurring public health threats in the United States. The company was incorporated in 1998 and is headquartered in Gaithersburg, Maryland. Emergent Biosolutions operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on New York Stock Exchange. It employs 2416 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Emergent Biosolutions 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.

Did you try this?

Run Portfolio Center Now

   

Portfolio Center

All portfolio management and optimization tools to improve performance of your portfolios
All  Next Launch Module

Pair Trading with Emergent Biosolutions

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 Emergent Biosolutions 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 Emergent Biosolutions will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Emergent Biosolutions could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Emergent Biosolutions 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 Emergent Biosolutions - 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 Emergent Biosolutions to buy it.
The correlation of Emergent Biosolutions 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 Emergent Biosolutions moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Emergent Biosolutions 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 Emergent Biosolutions 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 Emergent Biosolutions Piotroski F Score and Emergent Biosolutions Altman Z Score analysis. Note that the Emergent Biosolutions information on this page should be used as a complementary analysis to other Emergent Biosolutions' 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 Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

Complementary Tools for Emergent Stock analysis

When running Emergent Biosolutions price analysis, check to measure Emergent Biosolutions' 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 Emergent Biosolutions is operating at the current time. Most of Emergent Biosolutions' value examination focuses on studying past and present price action to predict the probability of Emergent Biosolutions' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Emergent Biosolutions' price. Additionally, you may evaluate how the addition of Emergent Biosolutions to your portfolios can decrease your overall portfolio volatility.
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Is Emergent Biosolutions' 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 Emergent Biosolutions. If investors know Emergent 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 Emergent Biosolutions 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
0.022
Market Capitalization
1.5 B
Quarterly Revenue Growth YOY
-0.39
Return On Assets
0.049
Return On Equity
0.0631
The market value of Emergent Biosolutions is measured differently than its book value, which is the value of Emergent that is recorded on the company's balance sheet. Investors also form their own opinion of Emergent Biosolutions' value that differs from its market value or its book value, called intrinsic value, which is Emergent Biosolutions' 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 Emergent Biosolutions' market value can be influenced by many factors that don't directly affect Emergent Biosolutions' 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 Emergent Biosolutions' value and its price as these two are different measures arrived at by different means. Investors typically determine Emergent Biosolutions value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Emergent Biosolutions' 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.