Shift4 Beneish M Score

FOUR
 Stock
  

USD 37.50  1.96  5.51%   

This module uses fundamental data of Shift4 Payments to approximate the value of its Beneish M Score. Shift4 Payments 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 Shift4 Payments Piotroski F Score and Shift4 Payments Altman Z Score analysis.
  
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As of 06/30/2022, Debt to Equity Ratio is likely to grow to 7.69, while Total Debt is likely to drop slightly above 1.6 B. Shift4 Payments EBITDA Margin is relatively stable at the moment as compared to the past year. Shift4 Payments reported last year EBITDA Margin of 0.06. As of 06/30/2022, Sales per Share is likely to grow to 25.55, while Earnings per Basic Share are likely to drop (0.96) .
At this time, it appears that Shift4 Payments is an unlikely manipulator. The earnings manipulation may begin if Shift4 Payments' 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 Shift4 Payments 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 Shift4 Payments' 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.
-2.72
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality1.13Focus
Expense Coverage1.01Focus
Gross Margin Strengs0.98Focus
Accruals Factor1.01Focus
Depreciation Resistance0.94Focus
Net Sales Growth0.89Focus
Financial Leverage Condition0.97Focus

Shift4 Payments 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 Shift4 Payments' 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
Revenues1.2 B1.4 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense223.6 M248.4 M
Moderately Down
Increasing
Slightly volatile
Net Cash Flow from Operations30.5 M29.2 M
Sufficiently Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion101.6 M104.4 M
Fairly Down
Increasing
Slightly volatile
Total Assets2.2 B2.3 B
Significantly Down
Increasing
Slightly volatile
Investments27.3 M27.4 M
Slightly Down
Decreasing
Slightly volatile
Investments Non Current27.3 M27.4 M
Slightly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net81.5 M95.3 M
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables183.2 M205.9 M
Fairly Down
Increasing
Slightly volatile
Total Liabilities1.8 B1.9 B
Moderately Down
Increasing
Slightly volatile
Current Assets1.3 B1.5 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current914.1 M889 M
Fairly Up
Increasing
Slightly volatile
Current Liabilities176.5 M183.8 M
Sufficiently Down
Increasing
Slightly volatile
Liabilities Non Current1.6 B1.8 B
Moderately Down
Increasing
Slightly volatile
Total Debt1.6 B1.8 B
Moderately Down
Increasing
Slightly volatile
Debt Current4.1 M4.8 M
Fairly Down
Decreasing
Slightly volatile
Debt Non Current1.6 B1.8 B
Moderately Down
Increasing
Slightly volatile
Gross Margin0.20.204
Fairly Down
Decreasing
Slightly volatile

Shift4 Payments 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 Shift4 Payments' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Shift4 Payments in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Shift4 Payments' degree of accounting gimmicks and manipulations.

About Shift4 Payments 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

101.55 Million

Share
Shift4 Payments Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. Shift4 Payments reported last year Depreciation Amortization and Accretion of 104.4 Million

About Shift4 Payments Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Shift4 Payments's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Shift4 Payments using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Shift4 Payments 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.
Shift4 Payments, Inc. provides integrated payment processing and technology solutions in the United States. The company was founded in 1999 and is headquartered in Allentown, Pennsylvania. Shift4 Payments operates under SoftwareInfrastructure classification in the United States and is traded on New York Stock Exchange. It employs 1732 people.

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Please check Shift4 Payments Piotroski F Score and Shift4 Payments Altman Z Score analysis. Note that the Shift4 Payments information on this page should be used as a complementary analysis to other Shift4 Payments' 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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When running Shift4 Payments price analysis, check to measure Shift4 Payments' 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 Shift4 Payments is operating at the current time. Most of Shift4 Payments' value examination focuses on studying past and present price action to predict the probability of Shift4 Payments' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Shift4 Payments' price. Additionally, you may evaluate how the addition of Shift4 Payments to your portfolios can decrease your overall portfolio volatility.
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Is Shift4 Payments' 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 Shift4 Payments. If investors know Shift4 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 Shift4 Payments listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
3.3 B
Quarterly Revenue Growth YOY
0.68
Return On Assets
8.0E-4
Return On Equity
-0.0749
The market value of Shift4 Payments is measured differently than its book value, which is the value of Shift4 that is recorded on the company's balance sheet. Investors also form their own opinion of Shift4 Payments' value that differs from its market value or its book value, called intrinsic value, which is Shift4 Payments' 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 Shift4 Payments' market value can be influenced by many factors that don't directly affect Shift4 Payments' 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 Shift4 Payments' value and its price as these two are different measures arrived at by different means. Investors typically determine Shift4 Payments value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shift4 Payments' 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.