TechnipFMC Beneish M Score

FTI
 Stock
  

USD 6.07  0.07  1.14%   

This module uses fundamental data of TechnipFMC Plc to approximate the value of its Beneish M Score. TechnipFMC Plc 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 TechnipFMC Plc Piotroski F Score and TechnipFMC Plc Altman Z Score analysis.
  
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TechnipFMC Plc Debt Non Current is most likely to increase significantly in the upcoming years. The last year's value of Debt Non Current was reported at 2.43 Billion. The current Debt to Equity Ratio is estimated to increase to 2.25, while Issuance Repayment of Debt Securities is projected to decrease to (1.4 B). TechnipFMC Plc Inventory Turnover is most likely to slightly decrease in the upcoming years. The last year's value of Inventory Turnover was reported at 4.85. The current Accounts Payable Turnover is estimated to increase to 4.12, while Long Term Debt to Equity is projected to decrease to 0.49.
At this time, it appears that TechnipFMC Plc is an unlikely manipulator. The earnings manipulation may begin if TechnipFMC Plc'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 TechnipFMC Plc 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 TechnipFMC Plc'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.
-4.35
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.9Focus
Asset Quality-3.05Focus
Expense Coverage1.05Focus
Gross Margin Strengs1.01Focus
Accruals Factor1.05Focus
Depreciation Resistance0.96Focus
Net Sales Growth1.18Focus
Financial Leverage Condition1.06Focus

TechnipFMC Plc 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 TechnipFMC Plc'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
Revenues7.5 B6.4 B
Fairly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense797.6 M644.9 M
Fairly Up
Increasing
Very volatile
Net Cash Flow from Operations640.4 M781.3 M
Significantly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion433.2 M385.4 M
Moderately Up
Increasing
Slightly volatile
Total Assets10.3 B10 B
Fairly Up
Increasing
Stable
Investments541.3 M609.7 M
Fairly Down
Increasing
Stable
Investments Current283.9 M285.6 M
Slightly Down
Decreasing
Slightly volatile
Investments Non Current299.4 M292.4 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net3.6 B3.4 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade ReceivablesB1.9 B
Notably Up
Decreasing
Stable
Total Liabilities6.8 B6.6 B
Fairly Up
Increasing
Stable
Current Assets8.3 B5.3 B
Way Up
Increasing
Slightly volatile
Assets Non Current4.8 B4.7 B
Fairly Up
Increasing
Very volatile
Current LiabilitiesB3.9 B
Fairly Up
Increasing
Very volatile
Liabilities Non Current3.7 B2.7 B
Significantly Up
Increasing
Slightly volatile
Total Debt3.5 B2.8 B
Fairly Up
Increasing
Slightly volatile
Debt Current492 M404.5 M
Fairly Up
Increasing
Slightly volatile
Debt Non CurrentB2.4 B
Fairly Up
Increasing
Slightly volatile
Operating Income36.6 M33.9 M
Significantly Up
Decreasing
Slightly volatile
Gross Margin0.130.129
Slightly Up
Decreasing
Slightly volatile

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

About TechnipFMC Plc 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

810.79 Million

TechnipFMC Plc Operating Expenses is most likely to increase significantly in the upcoming years. The last year's value of Operating Expenses was reported at 790 Million

TechnipFMC Plc 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 TechnipFMC Plc. 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)
Revenues15.06 B12.55 B6.95 B6.53 B6.4 B7.53 B
Total Assets28.26 B24.78 B23.52 B19.69 B10.02 B10.28 B
Current Assets12.98 B11.78 B11.89 B11.44 B5.34 B8.35 B
Assets Non Current15.29 B13 B11.63 B8.25 B4.68 B4.8 B
Total Liabilities14.85 B14.36 B15.79 B15.43 B6.6 B6.78 B
Current Liabilities9.83 B9.14 B10.14 B10.42 B3.85 B3.95 B
Total Debt3.85 B4.19 B5.43 B4.32 B2.83 B3.51 B
Debt Current77.1 M67.4 M770.5 M847.1 M404.5 M491.98 M
Debt Non Current3.78 B4.12 B4.66 B3.47 B2.43 B3.02 B
Operating Income965.2 M(917.6 M)(2.36 B)(3.51 B)33.9 M36.58 M
Investments272.5 M394.5 M300.4 M305.5 M609.7 M541.31 M

About TechnipFMC Plc Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze TechnipFMC Plc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of TechnipFMC Plc using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of TechnipFMC Plc 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.
TechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses in Europe, Central Asia, North and Latin America, the Asia Pacific, Africa, and the Middle East. The company was founded in 1884 and is based in Newcastle Upon Tyne, the United Kingdom. TechnipFMC Plc operates under Oil Gas Equipment Services classification in the United States and is traded on New York Stock Exchange. It employs 20000 people.

TechnipFMC Plc Investors Sentiment

The influence of TechnipFMC Plc'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 TechnipFMC. 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 TechnipFMC Plc's public news can be used to forecast risks associated with investment in TechnipFMC. The trend in average sentiment can be used to explain how an investor holding TechnipFMC can time the market purely based on public headlines and social activities around TechnipFMC Plc. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
TechnipFMC Plc'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 TechnipFMC Plc'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 TechnipFMC Plc's news discussions. The higher the estimate score, the more favorable is the investor's outlook on TechnipFMC Plc.

TechnipFMC Plc Implied Volatility

    
  89.27  
TechnipFMC Plc's implied volatility exposes the market's sentiment of TechnipFMC Plc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if TechnipFMC Plc's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that TechnipFMC Plc stock will not fluctuate a lot when TechnipFMC Plc's options are near their expiration.
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 TechnipFMC Plc 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, TechnipFMC Plc's short interest history, or implied volatility extrapolated from TechnipFMC Plc options trading.

Current Sentiment - FTI

TechnipFMC Plc Investor Sentiment

Greater number of Macroaxis users are currently bullish on TechnipFMC Plc. What is your outlook on investing in TechnipFMC Plc? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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

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When running TechnipFMC Plc price analysis, check to measure TechnipFMC Plc'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 TechnipFMC Plc is operating at the current time. Most of TechnipFMC Plc's value examination focuses on studying past and present price action to predict the probability of TechnipFMC Plc's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move TechnipFMC Plc's price. Additionally, you may evaluate how the addition of TechnipFMC Plc to your portfolios can decrease your overall portfolio volatility.
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Is TechnipFMC Plc'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 TechnipFMC Plc. If investors know TechnipFMC 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 TechnipFMC Plc 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
-0.88
Market Capitalization
2.8 B
Quarterly Revenue Growth YOY
-0.047
Return On Assets
0.005
Return On Equity
-0.1
The market value of TechnipFMC Plc is measured differently than its book value, which is the value of TechnipFMC that is recorded on the company's balance sheet. Investors also form their own opinion of TechnipFMC Plc's value that differs from its market value or its book value, called intrinsic value, which is TechnipFMC Plc'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 TechnipFMC Plc's market value can be influenced by many factors that don't directly affect TechnipFMC Plc'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 TechnipFMC Plc's value and its price as these two are different measures arrived at by different means. Investors typically determine TechnipFMC Plc value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TechnipFMC Plc'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.