Forum Beneish M Score

FET
 Stock
  

USD 19.30  0.01  0.05%   

This module uses fundamental data of Forum Energy to approximate the value of its Beneish M Score. Forum Energy 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. Please check Forum Energy Piotroski F Score and Forum Energy Altman Z Score analysis.
  
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Forum Energy Total Debt is comparatively stable at the moment as compared to the past year. Forum Energy reported Total Debt of 267.98 Million in 2021. Debt Current is likely to gain to about 882.6 K in 2022, whereas Debt to Equity Ratio is likely to drop 1.24 in 2022. Forum Energy Revenue to Assets are comparatively stable at the moment as compared to the past year. Forum Energy reported Revenue to Assets of 0.68 in 2021. Total Assets Per Share is likely to gain to 144.16 in 2022, whereas Return on Investment is likely to drop (7.78)  in 2022.
At this time, it appears that Forum Energy Technologies is a possible manipulator. The earnings manipulation may begin if Forum Energy'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 Forum Energy 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 Forum Energy'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.
-2.18
Beneish M Score - Possible Manipulator
Elasticity of Receivables0.85Focus
Asset Quality1.59Focus
Expense Coverage0.85Focus
Gross Margin Strengs0.96Focus
Accruals Factor0.85Focus
Depreciation Resistance0.88Focus
Net Sales Growth1.33Focus
Financial Leverage Condition0.84Focus

Forum Energy 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 Forum Energy'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
Revenues719.7 M541.1 M
Significantly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense190.1 M168.9 M
Moderately Up
Decreasing
Stable
Net Cash Flow from Operations(16.2 M)(15.8 M)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion56 M42.2 M
Significantly Up
Increasing
Stable
Total Assets1.1 B791.3 M
Significantly Up
Decreasing
Slightly volatile
Investments44.2 M40.5 M
Significantly Up
Decreasing
Slightly volatile
Investments Non Current44.2 M40.5 M
Significantly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net132.9 M119.4 M
Moderately Up
Increasing
Very volatile
Trade and Non Trade Receivables152.3 M134.4 M
Moderately Up
Decreasing
Slightly volatile
Total Liabilities540.8 M462.2 M
Fairly Up
Decreasing
Slightly volatile
Current Assets530.8 M446.7 M
Fairly Up
Decreasing
Slightly volatile
Assets Non Current353.7 M344.6 M
Fairly Up
Decreasing
Slightly volatile
Current Liabilities179.5 M175.7 M
Fairly Up
Decreasing
Slightly volatile
Liabilities Non Current361.3 M286.6 M
Significantly Up
Decreasing
Slightly volatile
Total Debt328.6 M268 M
Fairly Up
Decreasing
Slightly volatile
Debt Current882.6 K860 K
Fairly Up
Decreasing
Slightly volatile
Debt Non Current326.8 M267.1 M
Fairly Up
Decreasing
Slightly volatile
Operating Income(48 M)(44.5 M)
Significantly Down
Decreasing
Slightly volatile
Gross Margin0.220.228
Sufficiently Down
Decreasing
Slightly volatile

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

About Forum Energy 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

172.25 Million

Share
Forum Energy Operating Expenses is comparatively stable at the moment as compared to the past year. Forum Energy reported Operating Expenses of 167.83 Million in 2021

Forum Energy 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 Forum Energy. 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)
Revenues818.62 M1.06 B956.53 M512.48 M541.07 M719.67 M
Total Assets2.2 B1.83 B1.16 B889.93 M791.34 M1.12 B
Current Assets790.38 M766.02 M665.92 M490.19 M446.73 M530.81 M
Assets Non Current1.4 B1.06 B494.08 M399.74 M344.6 M353.67 M
Total Liabilities786.21 M799.53 M673.96 M483.69 M462.21 M540.79 M
Current Liabilities216.31 M236.93 M196.85 M124.93 M175.66 M179.49 M
Total Debt507.91 M518.71 M449.52 M339.23 M267.98 M328.58 M
Debt Current1.16 M1.17 M717 K1.32 M860 K882.63 K
Debt Non Current506.75 M517.54 M448.8 M337.91 M267.12 M326.83 M
Operating Income(142.59 M)(397.14 M)(535.83 M)(231.62 M)(44.49 M)(48.01 M)
Gross Margin0.170.230.240.26(0.022)0.22

About Forum Energy Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Forum Energy Technologies's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Forum Energy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Forum Energy Technologies 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.
Forum Energy Technologies, Inc. designs, manufactures, and distributes products serving the oil, natural gas, industrial, and renewable energy industries in the United States and internationally. Forum Energy Technologies, Inc. was incorporated in 2005 and is headquartered in Houston, Texas. Forum Energy operates under Oil Gas Equipment Services classification in the United States and is traded on New York Stock Exchange. It employs 1400 people.

Forum Energy Investors Sentiment

The influence of Forum Energy'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 Forum. 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.
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 Forum Energy 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, Forum Energy's short interest history, or implied volatility extrapolated from Forum Energy options trading.

Current Sentiment - FET

Forum Energy Technologies Investor Sentiment

Greater number of Macroaxis users are currently bullish on Forum Energy Technologies. What is your opinion about investing in Forum Energy Technologies? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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Please check Forum Energy Piotroski F Score and Forum Energy Altman Z Score analysis. Note that the Forum Energy Technologies information on this page should be used as a complementary analysis to other Forum Energy'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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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Is Forum Energy'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 Forum Energy. If investors know Forum 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 Forum Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
110.5 M
Quarterly Revenue Growth YOY
0.36
Return On Assets
-0.0254
Return On Equity
-0.18
The market value of Forum Energy Technologies is measured differently than its book value, which is the value of Forum that is recorded on the company's balance sheet. Investors also form their own opinion of Forum Energy's value that differs from its market value or its book value, called intrinsic value, which is Forum Energy'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 Forum Energy's market value can be influenced by many factors that don't directly affect Forum Energy'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 Forum Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine Forum Energy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Forum Energy'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.