ING Group Beneish M Score

ING
 Stock
  

USD 12.03  0.01  0.08%   

This module uses fundamental data of ING Group to approximate the value of its Beneish M Score. ING Group 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 see ING Group Piotroski F Score and ING Group Altman Z Score analysis.
  
The current year Total Debt is expected to grow to about 130.2 B. The current year Issuance Repayment of Debt Securities is expected to grow to about 23.1 B. ING Group Debt to Equity Ratio is projected to decrease significantly based on the last few years of reporting. The past year's Debt to Equity Ratio was at 15.32. The current year Enterprise Value over EBIT is expected to grow to 24.26, whereas Dividend Yield is forecasted to decline to 0.07.
At this time, it appears that ING Group NV is an unlikely manipulator. The earnings manipulation may begin if ING Group'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 ING Group 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 ING Group'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.
-3.81
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense Coverage1.11Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.11Focus
Depreciation Resistance1.06Focus
Net Sales Growth1.01Focus
Financial Leverage Condition1.01Focus

ING Group 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 ING Group'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 Expense5.5 B4.9 B
Moderately Up
Decreasing
Slightly volatile
Revenues16.7 B16.5 B
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net1.9 B1.5 B
Significantly Up
Decreasing
Slightly volatile
Operating Income7.6 BB
Notably Down
Increasing
Slightly volatile
Net Cash Flow from Operations6.3 BB
Significantly Down
Increasing
Very volatile
Total Liabilities809.2 B751.3 B
Significantly Up
Decreasing
Slightly volatile
Investments716.8 B674.9 B
Notably Up
Decreasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion559.9 M468 M
Fairly Up
Decreasing
Slightly volatile
Total Debt130.2 B120.1 B
Significantly Up
Decreasing
Slightly volatile
Total Assets853.6 B796.1 B
Notably Up
Decreasing
Slightly volatile

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

About ING Group 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

10.96 Billion

ING Group Operating Expenses is projected to decrease significantly based on the last few years of reporting. The past year's Operating Expenses was at 10.2 Billion

ING Group 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 ING Group. 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)
Revenues18.01 B17.9 B18.59 B18.32 B16.49 B16.74 B
Total Assets1,002.29 B842.22 B843.88 B884.6 B796.14 B853.58 B
Property Plant and Equipment Net2.03 B2 B1.8 B1.66 B1.49 B1.92 B
Selling General and Administrative Expense4.97 B5.04 B5.2 B5.42 B4.88 B5.51 B
Total Liabilities956.68 B794.35 B794.73 B834.75 B751.28 B809.19 B
Total Debt137.7 B120.46 B112.05 B133.47 B120.13 B130.17 B
Operating Income7.33 B6.31 B8.09 B6.99 B8.03 B7.62 B
Net Cash Flow from Operations10.58 B8.55 B(5.25 B)6.92 B7.95 B6.3 B
Investments954.14 B796.32 B797.63 B749.93 B674.94 B716.77 B

About ING Group Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze ING Group NV's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of ING Group using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of ING Group NV 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.
ING Groep N.V., a financial institution, provides various banking products and services in the Netherlands, Belgium, Germany, Poland, Rest of Europe, North America, Latin America, Asia, and Australia. ING Groep N.V. was founded in 1762 and is headquartered in Amsterdam, the Netherlands. ING Groep operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 57000 people.

ING Group Investors Sentiment

The influence of ING Group'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 ING Group. 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 ING Group's public news can be used to forecast risks associated with investment in ING Group. The trend in average sentiment can be used to explain how an investor holding ING Group can time the market purely based on public headlines and social activities around ING Group NV. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
ING Group'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 ING Group'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 ING Group's news discussions. The higher the estimated score, the more favorable is the investor's outlook on ING Group.
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 ING Group 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, ING Group's short interest history, or implied volatility extrapolated from ING Group options trading.

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Please see ING Group Piotroski F Score and ING Group Altman Z Score analysis. You can also try Equity Valuation module to check real value of public entities based on technical and fundamental data.

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When running ING Group NV price analysis, check to measure ING Group'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 ING Group is operating at the current time. Most of ING Group's value examination focuses on studying past and present price action to predict the probability of ING Group's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move ING Group's price. Additionally, you may evaluate how the addition of ING Group to your portfolios can decrease your overall portfolio volatility.
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Is ING Group'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 ING Group. If investors know ING Group 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 ING Group 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
(0.25) 
Market Capitalization
44.2 B
Quarterly Revenue Growth YOY
(0.12) 
Return On Assets
0.0035
Return On Equity
0.067
The market value of ING Group NV is measured differently than its book value, which is the value of ING Group that is recorded on the company's balance sheet. Investors also form their own opinion of ING Group's value that differs from its market value or its book value, called intrinsic value, which is ING Group'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 ING Group's market value can be influenced by many factors that don't directly affect ING Group'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 ING Group's value and its price as these two are different measures arrived at by different means. Investors typically determine ING Group value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ING Group'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.