Hewlett Beneish M Score

HPE
 Stock
  

USD 16.17  0.07  0.43%   

This module uses fundamental data of Hewlett Packard to approximate the value of its Beneish M Score. Hewlett Packard 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 Hewlett Packard Piotroski F Score and Hewlett Packard Altman Z Score analysis.
  
As of December 6, 2022, Total Debt is expected to decline to about 14.8 B. In addition to that, Debt Current is expected to decline to about 3.7 B. Hewlett Packard Calculated Tax Rate is projected to decrease significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 5.40. The current year PPandE Turnover is expected to grow to 5.85, whereas Net Current Assets as percentage of Total Assets are forecasted to decline to (3.71) .
At this time, it appears that Hewlett Packard Ente is an unlikely manipulator. The earnings manipulation may begin if Hewlett Packard'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 Hewlett Packard 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 Hewlett Packard'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.
-2.6
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.88Focus
Asset Quality1.1Focus
Expense Coverage0.86Focus
Gross Margin Strengs0.94Focus
Accruals Factor0.86Focus
Depreciation Resistance0.98Focus
Net Sales Growth1.29Focus
Financial Leverage Condition0.91Focus

Hewlett Packard 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 Hewlett Packard'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
Selling General and Administrative Expense4.9 B4.4 B
Significantly Up
Decreasing
Slightly volatile
Revenues41.1 B32 B
Significantly Up
Decreasing
Slightly volatile
Trade and Non Trade ReceivablesB3.6 B
Moderately Up
Decreasing
Slightly volatile
Property Plant and Equipment Net5.6 B5.1 B
Significantly Up
Decreasing
Slightly volatile
Operating Income1.3 B1.2 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations6.3 B6.8 B
Significantly Down
Decreasing
Slightly volatile
Liabilities Non Current20.2 B19.5 B
Sufficiently Up
Increasing
Slightly volatile
Current Liabilities24.1 B23.8 B
Fairly Up
Increasing
Stable
Total Liabilities33.7 B34 B
Slightly Down
Increasing
Stable
Investments Non Current15.1 B16 B
Notably Down
Increasing
Slightly volatile
Investments Current4.3 B4.5 B
Sufficiently Down
Increasing
Slightly volatile
Investments19.4 B20.5 B
Notably Down
Increasing
Slightly volatile
Gross Margin29.2531.06
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion2.7 B2.3 B
Fairly Up
Decreasing
Slightly volatile
Debt Non Current11.1 B11.4 B
Fairly Down
Increasing
Slightly volatile
Debt Current3.7 B4.1 B
Moderately Down
Increasing
Slightly volatile
Total Debt14.8 B15.5 B
Sufficiently Down
Increasing
Slightly volatile
Assets Non Current36.1 B34.9 B
Sufficiently Up
Decreasing
Slightly volatile
Current Assets24 B21.7 B
Significantly Up
Decreasing
Slightly volatile
Total Assets71.9 B66.4 B
Significantly Up
Decreasing
Slightly volatile

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

About Hewlett Packard 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

7.51 Billion

Hewlett Packard Operating Expenses is projected to decrease significantly based on the last few years of reporting. The past year's Operating Expenses was at 5.3 Billion

Hewlett Packard 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 Hewlett Packard. 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)
Revenues30.85 B29.14 B26.98 B27.78 B31.95 B41.1 B
Total Assets55.49 B51.8 B54.02 B57.7 B66.35 B71.92 B
Current Assets17.27 B15.14 B16.56 B18.88 B21.71 B24.02 B
Assets Non Current38.22 B36.66 B37.46 B38.82 B34.94 B36.13 B
Total Liabilities34.25 B34.7 B37.97 B37.73 B33.96 B33.67 B
Current Liabilities17.2 B19.16 B18.74 B20.69 B23.79 B24.1 B
Total Debt12.14 B13.82 B15.94 B13.45 B15.47 B14.82 B
Debt Current2 B4.42 B3.75 B3.55 B4.08 B3.68 B
Debt Non Current10.14 B9.39 B12.19 B9.9 B11.38 B11.15 B
Operating Income2.14 B1.57 B(58 M)1.34 B1.21 B1.31 B
Investments17.15 B14.74 B16.51 B17.81 B20.48 B19.44 B
Investments Current3.4 B3.57 B3.79 B3.93 B4.52 B4.34 B
Gross Margin31.0233.632.3934.5131.0629.25

Hewlett Packard ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Hewlett Packard's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Hewlett Packard's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Hewlett Packard Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Hewlett Packard Enterprise's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Hewlett Packard using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Hewlett Packard Enterprise 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.
Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Hewlett Packard Enterprise Company was founded in 19 and is headquartered in Houston, Texas. Hewlett Packard operates under Communication Equipment classification in the United States and is traded on New York Stock Exchange. It employs 60400 people.

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Please check Hewlett Packard Piotroski F Score and Hewlett Packard Altman Z Score analysis. You can also try Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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Is Hewlett Packard'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 Hewlett Packard. If investors know Hewlett 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 Hewlett Packard 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
0.069
Market Capitalization
21.3 B
Quarterly Revenue Growth YOY
0.07
Return On Assets
0.0262
Return On Equity
0.0435
The market value of Hewlett Packard Ente is measured differently than its book value, which is the value of Hewlett that is recorded on the company's balance sheet. Investors also form their own opinion of Hewlett Packard's value that differs from its market value or its book value, called intrinsic value, which is Hewlett Packard'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 Hewlett Packard's market value can be influenced by many factors that don't directly affect Hewlett Packard'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 Hewlett Packard's value and its price as these two are different measures arrived at by different means. Investors typically determine Hewlett Packard value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hewlett Packard'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.