Enterprise Beneish M Score

EPD
 Stock
  

USD 24.22  0.25  1.02%   

This module uses fundamental data of Enterprise Products to approximate the value of its Beneish M Score. Enterprise Products 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 Enterprise Products Piotroski F Score and Enterprise Products Altman Z Score analysis.
  
The current year Debt Current is expected to grow to about 1.7 B, whereas Total Debt is forecasted to decline to about 28.9 B. Enterprise Products Book Value per Share is projected to slightly grow based on the last few years of reporting. The past year's Book Value per Share was at 11.61. The current year Dividends per Basic Common Share is expected to grow to 1.84, whereas Debt to Equity Ratio is forecasted to decline to 1.50.
At this time, it appears that Enterprise Products is an unlikely manipulator. The earnings manipulation may begin if Enterprise Products' 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 Enterprise Products 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 Enterprise Products' 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.
-2.75
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.99Focus
Asset Quality1.04Focus
Expense Coverage1.18Focus
Gross Margin Strengs1.0Focus
Accruals Factor1.18Focus
Depreciation Resistance0.99Focus
Net Sales Growth0.9Focus
Financial Leverage Condition1.0Focus

Enterprise Products 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 Enterprise Products' 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 Expense222.7 M209.3 M
Notably Up
Increasing
Slightly volatile
Revenues36.8 B40.8 B
Moderately Down
Decreasing
Slightly volatile
Trade and Non Trade Receivables6.2 BB
Moderately Down
Increasing
Slightly volatile
Property Plant and Equipment Net41.6 B42.1 B
Fairly Down
Increasing
Slightly volatile
Operating Income5.2 B5.5 B
Notably Down
Increasing
Slightly volatile
Net Cash Flow from Operations7.3 B8.5 B
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current28.2 B29.5 B
Sufficiently Down
Increasing
Slightly volatile
Current Liabilities11 B11.6 B
Notably Down
Increasing
Slightly volatile
Total Liabilities39.3 B41.1 B
Sufficiently Down
Increasing
Slightly volatile
Investments Non Current2.7 B2.4 B
Significantly Up
Increasing
Slightly volatile
Investments Current226.1 M237 M
Sufficiently Down
Decreasing
Very volatile
Investments2.9 B2.7 B
Significantly Up
Increasing
Slightly volatile
Gross Margin0.140.14
Steady
Increasing
Slightly volatile
Depreciation Amortization and Accretion1.9 B1.9 B
Slightly Down
Increasing
Slightly volatile
Debt Non Current27.2 B28.1 B
Sufficiently Down
Increasing
Slightly volatile
Debt Current1.7 B1.4 B
Fairly Up
Increasing
Slightly volatile
Total Debt28.9 B29.5 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current54 B54.3 B
Slightly Down
Increasing
Slightly volatile
Current Assets11.1 B13.3 B
Fairly Down
Increasing
Slightly volatile
Total Assets65.2 B67.5 B
Sufficiently Down
Increasing
Slightly volatile

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

About Enterprise Products 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

222.66 Million

Enterprise Products Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 209.3 Million

Enterprise Products 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 Enterprise Products. 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)
Revenues29.24 B36.53 B32.79 B27.2 B40.81 B36.76 B
Total Assets54.42 B56.97 B61.73 B64.11 B67.53 B65.18 B
Current Assets6.51 B6.06 B7.86 B9.91 B13.27 B11.13 B
Assets Non Current47.91 B50.91 B53.87 B54.2 B54.26 B54.04 B
Total Liabilities31.65 B32.68 B35.91 B38.73 B41.09 B39.26 B
Current Liabilities9.3 B7.17 B9.13 B8.99 B11.62 B11.01 B
Total Debt24.57 B26.18 B27.63 B29.87 B29.54 B28.88 B
Debt Current2.85 B1.5 B1.98 B1.32 B1.4 B1.73 B
Debt Non Current21.71 B24.68 B25.64 B28.54 B28.14 B27.15 B
Operating Income3.5 B4.93 B5.52 B4.61 B5.52 B5.18 B
Investments2.81 B2.77 B2.73 B2.66 B2.67 B2.91 B
Investments Current153.4 M154.4 M127.2 M228.6 M237 M226.14 M

About Enterprise Products Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Enterprise Products Partners's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Enterprise Products using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Enterprise Products Partners 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.
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids , crude oil, petrochemicals, and refined products. The company was founded in 1968 and is headquartered in Houston, Texas. Enterprise Products operates under Oil Gas Midstream classification in the United States and is traded on New York Stock Exchange.

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Our tools can tell you how much better you can do entering a position in Enterprise Products without increasing your portfolio risk or giving up the 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 Enterprise Products

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 Enterprise Products 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 Enterprise Products will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Enterprise Products could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Enterprise Products 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 Enterprise Products - 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 Enterprise Products Partners to buy it.
The correlation of Enterprise Products 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 Enterprise Products moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Enterprise Products 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 Enterprise Products 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 Enterprise Products Piotroski F Score and Enterprise Products Altman Z Score analysis. You can also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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Is Enterprise Products' 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 Enterprise Products. If investors know Enterprise 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 Enterprise Products 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
0.182
Market Capitalization
53.2 B
Quarterly Revenue Growth YOY
0.428
Return On Assets
0.0573
Return On Equity
0.1953
The market value of Enterprise Products is measured differently than its book value, which is the value of Enterprise that is recorded on the company's balance sheet. Investors also form their own opinion of Enterprise Products' value that differs from its market value or its book value, called intrinsic value, which is Enterprise Products' 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 Enterprise Products' market value can be influenced by many factors that don't directly affect Enterprise Products' 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 Enterprise Products' value and its price as these two are different measures arrived at by different means. Investors typically determine Enterprise Products value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Enterprise Products' 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.