Ipower Beneish M Score

IPW -  USA Stock  

USD 1.13  0.08  6.61%

This module uses fundamental data of Ipower to approximate the value of its Beneish M Score. Ipower 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 Ipower Piotroski F Score and Ipower Altman Z Score analysis.
  
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Ipower Debt Current is fairly stable at the moment as compared to the past year. Ipower reported Debt Current of 1.73 Million in 2021. Debt to Equity Ratio is likely to climb to 0.39 in 2022, whereas Total Debt is likely to drop slightly above 2.9 M in 2022. Ipower Book Value per Share is fairly stable at the moment as compared to the past year. Ipower reported Book Value per Share of 1.36 in 2021. Debt to Equity Ratio is likely to climb to 0.39 in 2022, whereas Earnings per Basic Share are likely to drop (0.0369)  in 2022.
At this time, it appears that Ipower Inc is a possible manipulator. The earnings manipulation may begin if Ipower'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 Ipower 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 Ipower'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.
-0.93
Beneish M Score - Possible Manipulator
Elasticity of Receivables1.01Focus
Asset QualityN/AFocus
Expense Coverage0.96Focus
Gross Margin Strengs0.98Focus
Accruals Factor0.96Focus
Depreciation Resistance1.08Focus
Net Sales Growth0.89Focus
Financial Leverage Condition1.23Focus

Ipower 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 Ipower'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
Revenues55.3 M62.2 M
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense19.6 M22.8 M
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations(11.8 M)(11.5 M)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion84.3 K84.7 K
Slightly Down
Decreasing
Slightly volatile
Total Assets32.7 M41 M
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net2.3 M2.2 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables8.2 M9.1 M
Moderately Down
Increasing
Slightly volatile
Total Liabilities12.1 M12.3 M
Fairly Down
Increasing
Slightly volatile
Current Assets29.9 M37.2 M
Significantly Down
Increasing
Slightly volatile
Assets Non Current4.1 M3.8 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities10.7 M10.4 M
Fairly Up
Increasing
Slightly volatile
Liabilities Non CurrentM1.9 M
Significantly Up
Increasing
Slightly volatile
Total Debt2.9 M3.1 M
Sufficiently Down
Increasing
Slightly volatile
Debt CurrentM1.7 M
Moderately Up
Increasing
Slightly volatile
Debt Non Current1.1 M1.3 M
Fairly Down
Increasing
Slightly volatile
Operating Income3.1 M3.4 M
Moderately Down
Increasing
Slightly volatile
Gross Margin0.480.49
Fairly Down
Increasing
Slightly volatile

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

About Ipower 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

19.57 Million

Share
Ipower Operating Expenses is fairly stable at the moment as compared to the past year. Ipower reported Operating Expenses of 22.84 Million in 2021

About Ipower Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ipower Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ipower using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ipower Inc 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.
iPower Inc. supplies hydroponics equipment online in the United States. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is based in Duarte, California. Ipower operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 21 people.

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Please see Ipower Piotroski F Score and Ipower Altman Z Score analysis. Note that the Ipower Inc information on this page should be used as a complementary analysis to other Ipower'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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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When running Ipower Inc price analysis, check to measure Ipower'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 Ipower is operating at the current time. Most of Ipower's value examination focuses on studying past and present price action to predict the probability of Ipower's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ipower's price. Additionally, you may evaluate how the addition of Ipower to your portfolios can decrease your overall portfolio volatility.
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Is Ipower'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 Ipower. If investors know Ipower 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 Ipower listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Ipower Inc is measured differently than its book value, which is the value of Ipower that is recorded on the company's balance sheet. Investors also form their own opinion of Ipower's value that differs from its market value or its book value, called intrinsic value, which is Ipower'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 Ipower's market value can be influenced by many factors that don't directly affect Ipower'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 Ipower's value and its price as these two are different measures arrived at by different means. Investors typically determine Ipower value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ipower'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.