Kimball Beneish M Score

KE
 Stock
  

USD 22.46  0.47  2.05%   

This module uses fundamental data of Kimball Electronics to approximate the value of its Beneish M Score. Kimball Electronics 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 Kimball Electronics Piotroski F Score and Kimball Electronics Altman Z Score analysis.
  
Kimball Electronics Issuance Repayment of Debt Securities is projected to based on the last few years of reporting. The past year's Issuance Repayment of Debt Securities was at 114.28 Million. The current year Debt to Equity Ratio is expected to grow to 0.43, whereas Debt Non Current is forecasted to decline to about 129.6 M. Kimball Electronics Calculated Tax Rate is projected to increase significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 28.53. The current year Inventory Turnover is expected to grow to 5.46, whereas PPandE Turnover is forecasted to decline to 7.12.
At this time, it appears that Kimball Electronics is an unlikely manipulator. The earnings manipulation may begin if Kimball Electronics' 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 Kimball Electronics 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 Kimball Electronics' 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.
-2.4
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.15Focus
Asset QualityN/AFocus
Expense Coverage1.15Focus
Gross Margin Strengs0.95Focus
Accruals Factor1.15Focus
Depreciation Resistance0.91Focus
Net Sales Growth0.83Focus
Financial Leverage Condition1.0Focus

Kimball Electronics 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 Kimball Electronics' 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 Expense51.3 M53.4 M
Sufficiently Down
Increasing
Slightly volatile
Revenues1.1 B1.3 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables212.1 M222.9 M
Notably Down
Increasing
Slightly volatile
Property Plant and Equipment Net185.3 M206.8 M
Moderately Down
Increasing
Slightly volatile
Operating Income43.3 M52.5 M
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations(85.4 M)(83.2 M)
Fairly Down
Decreasing
Slightly volatile
Liabilities Non Current186.7 M173.1 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities441 M408.7 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities627.7 M581.8 M
Significantly Up
Increasing
Slightly volatile
Gross Margin7.387.751
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion29.4 M29.4 M
Slightly Up
Increasing
Slightly volatile
Debt Non Current129.6 M145 M
Moderately Down
Increasing
Stable
Debt Current31.2 M35.6 M
Fairly Down
Increasing
Slightly volatile
Total Debt194.8 M180.6 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current244.4 M274.7 M
Fairly Down
Increasing
Slightly volatile
Current Assets821.2 M761.1 M
Significantly Up
Increasing
Slightly volatile
Total Assets1.1 BB
Significantly Up
Increasing
Slightly volatile

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

About Kimball Electronics 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.

Cost of Revenue

1.18 Billion

Kimball Electronics Cost of Revenue is projected to increase significantly based on the last few years of reporting. The past year's Cost of Revenue was at 1.24 Billion

Kimball Electronics 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 Kimball Electronics. 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)
Revenues1.07 B1.18 B1.2 B1.29 B1.35 B1.12 B
Total Assets608.76 M764.11 M774.83 M814.06 M1.04 B1.12 B
Current Assets436.99 M555.31 M558.41 M583.39 M761.08 M821.17 M
Assets Non Current171.77 M208.8 M216.42 M230.67 M274.68 M244.36 M
Total Liabilities253.23 M394.26 M395.46 M372.09 M581.8 M627.73 M
Current Liabilities228.57 M274.91 M272.61 M300.77 M408.74 M441.01 M
Total Debt8.34 M126.21 M118.14 M66.21 M180.58 M194.84 M
Debt Current8.34 M34.71 M26.64 M26.21 M35.58 M31.17 M
Operating Income42.35 M42.06 M32 M65.7 M52.55 M43.28 M
Gross Margin8.047.486.989.147.757.38

About Kimball Electronics Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Kimball Electronics's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Kimball Electronics using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Kimball Electronics 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.
Kimball Electronics, Inc. provides contract electronics manufacturing services and diversified manufacturing services to customers in the automotive, medical, industrial, and public safety end markets. Kimball Electronics, Inc. was founded in 1961 and is headquartered in Jasper, Indiana. Kimball Electrnc operates under Electrical Equipment Parts classification in the United States and is traded on NASDAQ Exchange. It employs 7200 people.

Kimball Electronics Investors Sentiment

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

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Please see Kimball Electronics Piotroski F Score and Kimball Electronics Altman Z Score analysis. Note that the Kimball Electronics information on this page should be used as a complementary analysis to other Kimball Electronics' 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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When running Kimball Electronics price analysis, check to measure Kimball Electronics' 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 Kimball Electronics is operating at the current time. Most of Kimball Electronics' value examination focuses on studying past and present price action to predict the probability of Kimball Electronics' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Kimball Electronics' price. Additionally, you may evaluate how the addition of Kimball Electronics to your portfolios can decrease your overall portfolio volatility.
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Is Kimball Electronics' 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 Kimball Electronics. If investors know Kimball 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 Kimball Electronics 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
2.8
Market Capitalization
570.6 M
Quarterly Revenue Growth YOY
0.39
Return On Assets
0.043
Return On Equity
0.0853
The market value of Kimball Electronics is measured differently than its book value, which is the value of Kimball that is recorded on the company's balance sheet. Investors also form their own opinion of Kimball Electronics' value that differs from its market value or its book value, called intrinsic value, which is Kimball Electronics' 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 Kimball Electronics' market value can be influenced by many factors that don't directly affect Kimball Electronics' 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 Kimball Electronics' value and its price as these two are different measures arrived at by different means. Investors typically determine Kimball Electronics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kimball Electronics' 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.