Inspired Beneish M Score

INSE
 Stock
  

USD 12.48  0.16  1.30%   

This module uses fundamental data of Inspired Entertainment to approximate the value of its Beneish M Score. Inspired Entertainment 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 Inspired Entertainment Piotroski F Score and Inspired Entertainment Altman Z Score analysis.
  
Inspired Entertainment Debt Current is projected to decrease significantly based on the last few years of reporting. The past year's Debt Current was at 3.78 Million. The current year Issuance Repayment of Debt Securities is expected to grow to about 2.9 M, whereas Debt Non Current is forecasted to decline to about 317.1 M. Inspired Entertainment Accrued Expenses Turnover is projected to slightly decrease based on the last few years of reporting. The past year's Accrued Expenses Turnover was at 4.61. The current year Cash and Equivalents Turnover is expected to grow to 6.19, whereas Receivables Turnover is forecasted to decline to 4.65.
At this time, it appears that Inspired Entertainment is an unlikely manipulator. The earnings manipulation may begin if Inspired Entertainment'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 Inspired Entertainment 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 Inspired Entertainment'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.
-2.8
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.11Focus
Asset Quality0.54Focus
Expense Coverage1.03Focus
Gross Margin Strengs1.12Focus
Accruals Factor1.03Focus
Depreciation Resistance1.05Focus
Net Sales Growth0.84Focus
Financial Leverage Condition1.1Focus

Inspired Entertainment 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 Inspired Entertainment'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 Expense95.9 M110.2 M
Fairly Down
Increasing
Slightly volatile
Revenues176.3 M208.9 M
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables29.7 M31.7 M
Notably Down
Increasing
Slightly volatile
Property Plant and Equipment Net67.4 M61 M
Significantly Up
Increasing
Slightly volatile
Operating Income(647.4 K)(600 K)
Significantly Down
Decreasing
Very volatile
Net Cash Flow from Operations6.4 M6.2 M
Fairly Up
Increasing
Stable
Liabilities Non Current297.1 M328.2 M
Moderately Down
Increasing
Slightly volatile
Current Liabilities64.8 M81.5 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities328 M409.7 M
Significantly Down
Decreasing
Stable
Investments Non Current554.2 K540 K
Fairly Up
Decreasing
Slightly volatile
Investments554.2 K540 K
Fairly Up
Decreasing
Slightly volatile
Gross Margin85.1475.73
Moderately Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion51.2 M50.3 M
Fairly Up
Increasing
Slightly volatile
Debt Non Current317.1 M318.3 M
Slightly Down
Decreasing
Slightly volatile
Debt Current4.3 M3.8 M
Fairly Up
Decreasing
Slightly volatile
Total Debt322.6 M322.5 M
Slightly Up
Decreasing
Slightly volatile
Assets Non Current199.4 M205.3 M
Fairly Down
Increasing
Slightly volatile
Current Assets136.4 M126.4 M
Significantly Up
Increasing
Slightly volatile
Total Assets267.3 M331.7 M
Significantly Down
Increasing
Slightly volatile

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

About Inspired Entertainment 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

51.22 Million

Inspired Entertainment 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 50.3 Million

Inspired Entertainment 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 Inspired Entertainment. 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)
Revenues122.54 M141.38 M153.4 M199.8 M208.9 M176.32 M
Total Assets219.02 M207.91 M327.4 M324.1 M331.7 M267.3 M
Current Assets63.2 M58.55 M95.3 M109 M126.4 M136.38 M
Assets Non Current155.82 M149.3 M232.1 M215.1 M205.3 M199.44 M
Total Liabilities221.35 M220.38 M376.9 M412.8 M409.7 M328.02 M
Current Liabilities61.22 M52.34 M78.3 M81.9 M81.5 M64.83 M
Total Debt123.86 M131.8 M282 M311.1 M322.5 M322.58 M
Debt Current7.93 M500 K6.3 M4.2 M3.78 M4.33 M
Debt Non Current115.93 M131.3 M275.7 M306.9 M318.3 M317.15 M
Operating Income(11.9 M)(7.31 M)(13 M)6.4 M(600 K)(647.37 K)
Gross Margin78.2278.2376.4777.7375.7385.14

About Inspired Entertainment Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Inspired Entertainment's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Inspired Entertainment using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Inspired Entertainment 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.
Inspired Entertainment, Inc., a business-to-business gaming technology company, supplies content, platform, and other products and services to regulated lottery, betting, and gaming operators worldwide. Inspired Entertainment, Inc. is headquartered in New York, New York. Inspired Entertainment operates under Gambling classification in the United States and is traded on NASDAQ Exchange. It employs 1500 people.

Inspired Entertainment Investors Sentiment

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

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Please see Inspired Entertainment Piotroski F Score and Inspired Entertainment Altman Z Score analysis. You can also try Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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When running Inspired Entertainment price analysis, check to measure Inspired Entertainment'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 Inspired Entertainment is operating at the current time. Most of Inspired Entertainment's value examination focuses on studying past and present price action to predict the probability of Inspired Entertainment's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Inspired Entertainment's price. Additionally, you may evaluate how the addition of Inspired Entertainment to your portfolios can decrease your overall portfolio volatility.
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Is Inspired Entertainment'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 Inspired Entertainment. If investors know Inspired 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 Inspired Entertainment 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
0.167
Market Capitalization
314 M
Quarterly Revenue Growth YOY
(0.035) 
Return On Assets
0.094
The market value of Inspired Entertainment is measured differently than its book value, which is the value of Inspired that is recorded on the company's balance sheet. Investors also form their own opinion of Inspired Entertainment's value that differs from its market value or its book value, called intrinsic value, which is Inspired Entertainment'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 Inspired Entertainment's market value can be influenced by many factors that don't directly affect Inspired Entertainment'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 Inspired Entertainment's value and its price as these two are different measures arrived at by different means. Investors typically determine Inspired Entertainment value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Inspired Entertainment'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.