Focus Beneish M Score

FOCS
 Stock
  

USD 34.53  0.47  1.38%   

This module uses fundamental data of Focus Financial to approximate the value of its Beneish M Score. Focus Financial 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 Focus Financial Piotroski F Score and Focus Financial Altman Z Score analysis.
  
Refresh
Focus Financial Issuance Repayment of Debt Securities is relatively stable at the moment as compared to the past year. Focus Financial reported last year Issuance Repayment of Debt Securities of 884.72 Million. As of 07/04/2022, Long Term Debt to Equity is likely to grow to 3.74, while Total Debt is likely to drop slightly above 2.3 B. Focus Financial Enterprise Value over EBITDA is relatively stable at the moment as compared to the past year. Focus Financial reported last year Enterprise Value over EBITDA of 21.54. As of 07/04/2022, Profit Margin is likely to grow to 0.006474, while Accounts Payable Turnover is likely to drop 147.70.
At this time, it appears that Focus Financial Partners is an unlikely manipulator. The earnings manipulation may begin if Focus Financial'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 Focus Financial 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 Focus Financial'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.
-3.16
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.05Focus
Asset QualityN/AFocus
Expense Coverage1.04Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.04Focus
Depreciation Resistance0.99Focus
Net Sales Growth0.87Focus
Financial Leverage Condition0.99Focus

Focus Financial 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 Focus Financial'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
Revenues1.6 B1.8 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense802.7 M888.8 M
Moderately Down
Increasing
Slightly volatile
Net Cash Flow from Operations259 M313.9 M
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion177.1 M202.5 M
Fairly Down
Increasing
Slightly volatile
Total Assets4.1 B4.7 B
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net254.1 M297 M
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables182.2 M198.8 M
Significantly Down
Increasing
Slightly volatile
Total LiabilitiesB3.6 B
Fairly Down
Increasing
Slightly volatile
Current Assets549.7 M509.5 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities216.7 M200.8 M
Significantly Up
Increasing
Slightly volatile
Total Debt2.3 B2.7 B
Fairly Down
Increasing
Slightly volatile
Operating Income90.7 M102.9 M
Fairly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Focus Financial 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

177.05 Million

Share
Focus Financial Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. Focus Financial reported last year Depreciation Amortization and Accretion of 202.47 Million

Focus Financial 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 Focus Financial. 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)
Revenues662.89 M910.88 M1.22 B1.36 B1.8 B1.57 B
Current Assets124.97 M131.81 M194.51 M235.08 M509.51 M549.74 M
Depreciation Amortization and Accretion71.05 M98.75 M141.39 M160.23 M202.47 M177.05 M
Selling General and Administrative Expense400.17 M528.35 M664.38 M712.59 M888.76 M802.7 M
Current Liabilities69.17 M91.02 M115.96 M139.11 M200.81 M216.66 M
Operating Income5.75 M44.43 M67.65 M119.83 M102.87 M90.7 M
Net Cash Flow from Operations69.09 M105.92 M194.77 M211.36 M313.92 M259.03 M

About Focus Financial Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Focus Financial Partners's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Focus Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Focus Financial 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.
Focus Financial Partners Inc. provides wealth management services to primarily ultra-high and high net worth individuals, families, and business entities. Focus Financial Partners Inc. was founded in 2006 and is headquartered in New York, New York. Focus Financial operates under Asset Management classification in the United States and is traded on NASDAQ Exchange. It employs 4400 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Focus Financial 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 My Watchlist Analysis Now

   

My Watchlist Analysis

Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
All  Next Launch Module

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Focus Financial Partners using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please check Focus Financial Piotroski F Score and Focus Financial Altman Z Score analysis. Note that the Focus Financial Partners information on this page should be used as a complementary analysis to other Focus Financial'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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Complementary Tools for Focus Stock analysis

When running Focus Financial Partners price analysis, check to measure Focus Financial'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 Focus Financial is operating at the current time. Most of Focus Financial's value examination focuses on studying past and present price action to predict the probability of Focus Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Focus Financial's price. Additionally, you may evaluate how the addition of Focus Financial to your portfolios can decrease your overall portfolio volatility.
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Is Focus Financial'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 Focus Financial. If investors know Focus 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 Focus Financial 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
89.52
Market Capitalization
2.3 B
Quarterly Revenue Growth YOY
0.36
Return On Assets
0.0377
Return On Equity
0.0593
The market value of Focus Financial Partners is measured differently than its book value, which is the value of Focus that is recorded on the company's balance sheet. Investors also form their own opinion of Focus Financial's value that differs from its market value or its book value, called intrinsic value, which is Focus Financial'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 Focus Financial's market value can be influenced by many factors that don't directly affect Focus Financial'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 Focus Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Focus Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Focus Financial'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.