Enerpac Beneish M Score

EPAC
 Stock
  

USD 24.97  0.07  0.28%   

This module uses fundamental data of Enerpac Tool to approximate the value of its Beneish M Score. Enerpac Tool 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 Enerpac Tool Piotroski F Score and Enerpac Tool Altman Z Score analysis.
  
Enerpac Tool Total Debt is projected to decrease significantly based on the last few years of reporting. The past year's Total Debt was at 157.5 Million. The current year Debt Current is expected to grow to about 13 M, whereas Issuance Repayment of Debt Securities is forecasted to decline to (73.9 M). Enerpac Tool Interest Coverage is projected to decrease significantly based on the last few years of reporting. The past year's Interest Coverage was at 4.01. The current year Long Term Debt to Equity is expected to grow to 0.64, whereas PPandE Turnover is forecasted to decline to 10.91.
At this time, it appears that Enerpac Tool Group is an unlikely manipulator. The earnings manipulation may begin if Enerpac Tool'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 Enerpac Tool 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 Enerpac Tool'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.
-2.83
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.26Focus
Asset QualityN/AFocus
Expense Coverage1.17Focus
Gross Margin Strengs0.89Focus
Accruals Factor1.17Focus
Depreciation Resistance1.08Focus
Net Sales Growth1.03Focus
Financial Leverage Condition1.0Focus

Enerpac Tool 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 Enerpac Tool'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 Expense189.9 M157.7 M
Fairly Up
Decreasing
Slightly volatile
Revenues586.3 M571.2 M
Fairly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables120 M92.9 M
Significantly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net67.6 M43.7 M
Way Up
Decreasing
Slightly volatile
Operating Income31.5 M30.7 M
Fairly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations53.1 M51.7 M
Fairly Up
Decreasing
Slightly volatile
Liabilities Non Current368.4 M246 M
Way Up
Decreasing
Slightly volatile
Current Liabilities236.4 M153.2 M
Way Up
Decreasing
Slightly volatile
Total Liabilities450.2 M438.7 M
Fairly Up
Decreasing
Slightly volatile
Gross Margin41.1546.4596
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion26.9 M19.4 M
Significantly Up
Decreasing
Slightly volatile
Debt Non Current161.6 M157.5 M
Fairly Up
Decreasing
Slightly volatile
Debt Current13 M8.6 M
Way Up
Increasing
Stable
Total Debt161.6 M157.5 M
Fairly Up
Decreasing
Slightly volatile
Assets Non Current585.9 M416.5 M
Significantly Up
Decreasing
Slightly volatile
Current Assets495.4 M342.4 M
Way Up
Decreasing
Slightly volatile
Total Assets777.2 M757.3 M
Fairly Up
Decreasing
Slightly volatile

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

About Enerpac Tool 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

26.91 Million

Enerpac Tool 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 19.45 Million

Enerpac Tool 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 Enerpac Tool. 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)
Revenues1.18 B654.76 M493.29 M528.66 M571.22 M586.26 M
Total Assets1.48 B1.12 B824.29 M820.25 M757.31 M777.24 M
Current Assets660.9 M730.33 M341.13 M357.44 M342.38 M495.43 M
Assets Non Current431.88 M393.95 M483.16 M462.81 M416.53 M585.89 M
Total Liabilities922.63 M823.1 M465.07 M408.05 M438.7 M450.25 M
Current Liabilities330.96 M300.4 M105.52 M134.76 M153.19 M236.36 M
Total Debt532.7 M460.44 M255 M175 M157.5 M161.64 M
Debt Non Current502.69 M452.94 M255 M175 M157.5 M161.64 M
Operating Income18.2 M47.52 M24.18 M51.11 M30.66 M31.47 M
Gross Margin35.1144.744.0345.9946.4641.15

About Enerpac Tool Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Enerpac Tool Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Enerpac Tool using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Enerpac Tool 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.
Enerpac Tool Group Corp. manufactures and sells a range of industrial products and solutions in the United States, the United Kingdom, Germany, Australia, Canada, China, Saudi Arabia, Brazil, and internationally. Enerpac Tool Group Corp. was incorporated in 1910 and is headquartered in Menomonee Falls, Wisconsin. Actuant Corp operates under Specialty Industrial Machinery classification in the United States and is traded on New York Stock Exchange. It employs 2200 people.

Enerpac Tool Investors Sentiment

The influence of Enerpac Tool's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Enerpac. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Enerpac Tool's public news can be used to forecast risks associated with investment in Enerpac. The trend in average sentiment can be used to explain how an investor holding Enerpac can time the market purely based on public headlines and social activities around Enerpac Tool Group. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Enerpac Tool's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Enerpac Tool's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Enerpac Tool's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Enerpac Tool.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Enerpac Tool in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Enerpac Tool's short interest history, or implied volatility extrapolated from Enerpac Tool options trading.

Pair Trading with Enerpac Tool

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

Moving together with Enerpac Tool

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Moving against Enerpac Tool

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The ability to find closely correlated positions to Enerpac Tool could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Enerpac Tool 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 Enerpac Tool - 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 Enerpac Tool Group to buy it.
The correlation of Enerpac Tool 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 Enerpac Tool moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Enerpac Tool 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 Enerpac Tool 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 Enerpac Tool Piotroski F Score and Enerpac Tool Altman Z Score analysis. Note that the Enerpac Tool Group information on this page should be used as a complementary analysis to other Enerpac Tool'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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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Is Enerpac Tool'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 Enerpac Tool. If investors know Enerpac 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 Enerpac Tool 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
0.99
Market Capitalization
1.4 B
Quarterly Revenue Growth YOY
0.044
Return On Assets
0.0432
Return On Equity
0.0536
The market value of Enerpac Tool Group is measured differently than its book value, which is the value of Enerpac that is recorded on the company's balance sheet. Investors also form their own opinion of Enerpac Tool's value that differs from its market value or its book value, called intrinsic value, which is Enerpac Tool'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 Enerpac Tool's market value can be influenced by many factors that don't directly affect Enerpac Tool'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 Enerpac Tool's value and its price as these two are different measures arrived at by different means. Investors typically determine Enerpac Tool value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Enerpac Tool'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.