Howard Beneish M Score

HBMD -  USA Stock  

USD 23.30  0.00  0.00%

This module uses fundamental data of Howard Bancorp to approximate the value of its Beneish M Score. Howard Bancorp 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 Risk vs Return Analysis.
  
Refresh
The current year Debt to Equity Ratio is expected to grow to 7.14, whereas Long Term Debt is forecasted to decline to about 36.5 M. Howard Bancorp PPandE Turnover is projected to increase slightly based on the last few years of reporting. The past year's PPandE Turnover was at 2.11. The current year Cash and Equivalents Turnover is expected to grow to 1.05, whereas Book Value per Share is forecasted to decline to 17.55.
At this time, it appears that Howard Bancorp is an unlikely manipulator. The earnings manipulation may begin if Howard Bancorp'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 Howard Bancorp 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 Howard Bancorp'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.
-4.11
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense Coverage1.06Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.06Focus
Depreciation Resistance0.78Focus
Net Sales Growth0.84Focus
Financial Leverage Condition0.98Focus

Howard Bancorp 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 Howard Bancorp'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
Revenues73.1 M87.5 M
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense36 M40.7 M
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations75.3 M69.8 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion6.4 M5.9 M
Significantly Up
Increasing
Slightly volatile
Total Assets3.1 B2.9 B
Significantly Up
Increasing
Slightly volatile
Investments2.8 B2.6 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net38.3 M47.3 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities2.8 B2.6 B
Significantly Up
Increasing
Slightly volatile
Total Debt227.8 M278.4 M
Significantly Down
Increasing
Slightly volatile
Operating Income(12.3 M)(12 M)
Fairly Down
Decreasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Howard Bancorp 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

6.39 Million

Share
Howard Bancorp Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 5.92 Million

Howard Bancorp 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 Howard Bancorp. 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)
Revenues55.55 M78.39 M86.15 M76.12 M87.53 M73.1 M
Total Assets1.15 B2.27 B2.37 B2.54 B2.92 B3.15 B
Property Plant and Equipment Net19.19 M45.14 M42.72 M41.14 M47.31 M38.28 M
Depreciation Amortization and Accretion1.79 M5.04 M5.36 M5.15 M5.92 M6.39 M
Selling General and Administrative Expense31.96 M47.66 M43.47 M35.43 M40.75 M36.03 M
Total Liabilities1.02 B1.97 B2.06 B2.24 B2.58 B2.78 B
Total Debt148.92 M276.65 M319.37 M242.07 M278.38 M227.84 M
Operating Income10.35 M(4.72 M)22.07 M(13.35 M)(12.01 M)(12.33 M)
Net Cash Flow from Operations16.9 M54.81 M20.56 M60.67 M69.77 M75.27 M
Investments1.06 B1.91 B2 B2.24 B2.58 B2.78 B

About Howard Bancorp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Howard Bancorp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Howard Bancorp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Howard Bancorp 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.
Howard Bancorp, Inc. operates as the bank holding company for Howard Bank that provides commercial banking, mortgage banking, and consumer finance products and services to businesses, business owners, professionals, and other consumers. Howard Bancorp, Inc. was founded in 2004 and is headquartered in Baltimore, Maryland. Howard Bancorp operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 235 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Howard Bancorp 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 Risk-Return Analysis Now

   

Risk-Return Analysis

View associations between returns expected from investment and the risk you assume
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 Howard Bancorp 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 Risk vs Return Analysis. Note that the Howard Bancorp information on this page should be used as a complementary analysis to other Howard Bancorp'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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Tools for Howard Stock

When running Howard Bancorp price analysis, check to measure Howard Bancorp'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 Howard Bancorp is operating at the current time. Most of Howard Bancorp's value examination focuses on studying past and present price action to predict the probability of Howard Bancorp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Howard Bancorp's price. Additionally, you may evaluate how the addition of Howard Bancorp to your portfolios can decrease your overall portfolio volatility.
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go