Knowles Beneish M Score

KN
 Stock
  

USD 16.30  0.25  1.56%   

This module uses fundamental data of Knowles Cor to approximate the value of its Beneish M Score. Knowles Cor 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 Knowles Cor Piotroski F Score and Knowles Cor Altman Z Score analysis.
  
Knowles Cor Total Debt is quite stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 98.63 Million. Debt Current is expected to rise to about 11.7 M this year, although the value of Issuance Repayment of Debt Securities will most likely fall to (107.6 M). Knowles Cor Return on Investment is quite stable at the moment as compared to the past year. The company's current value of Return on Investment is estimated at 8.29. Revenue to Assets is expected to rise to 0.57 this year, although the value of Calculated Tax Rate will most likely fall to (44.74) .
At this time, it appears that Knowles Cor is an unlikely manipulator. The earnings manipulation may begin if Knowles Cor'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 Knowles Cor 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 Knowles Cor'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.
-3.11
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.87Focus
Asset QualityN/AFocus
Expense Coverage0.85Focus
Gross Margin Strengs0.88Focus
Accruals Factor0.85Focus
Depreciation Resistance0.92Focus
Net Sales Growth1.16Focus
Financial Leverage Condition1.27Focus

Knowles Cor 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 Knowles Cor'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 Expense144.5 M146.4 M
Fairly Down
Decreasing
Slightly volatile
RevenuesB868.1 M
Fairly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables148.4 M146.6 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net220.8 M218.2 M
Fairly Up
Decreasing
Slightly volatile
Operating Income124.9 M115.8 M
Significantly Up
Decreasing
Very volatile
Net Cash Flow from Operations172.2 M182.1 M
Notably Down
Decreasing
Stable
Liabilities Non Current108.7 M105.9 M
Fairly Up
Decreasing
Slightly volatile
Current Liabilities204.2 M166.2 M
Fairly Up
Decreasing
Slightly volatile
Total Liabilities424 M272.1 M
Way Up
Decreasing
Slightly volatile
Gross Margin36.4941.4123
Fairly Down
Increasing
Stable
Depreciation Amortization and Accretion70.4 M62.5 M
Moderately Up
Decreasing
Slightly volatile
Debt Non Current86.9 M84.7 M
Fairly Up
Decreasing
Slightly volatile
Debt Current11.7 M11.4 M
Fairly Up
Increasing
Stable
Total Debt98.6 M96.1 M
Fairly Up
Decreasing
Slightly volatile
Assets Non Current1.3 B1.4 B
Sufficiently Down
Decreasing
Slightly volatile
Current Assets434.7 M380.3 M
Fairly Up
Decreasing
Very volatile
Total Assets1.9 B1.7 B
Moderately Up
Decreasing
Slightly volatile

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

About Knowles Cor 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

500.62 Million

Knowles Cor Cost of Revenue is quite stable at the moment as compared to the past year. The company's current value of Cost of Revenue is estimated at 500.62 Million

Knowles Cor 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 Knowles Cor. 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)
Revenues744.2 M826.9 M854.8 M764.3 M868.1 M1.01 B
Total Assets1.55 B1.55 B1.65 B1.65 B1.73 B1.93 B
Current Assets394.9 M365 M388.4 M419.6 M380.3 M434.67 M
Assets Non Current1.15 B1.18 B1.27 B1.24 B1.35 B1.29 B
Total Liabilities417.7 M336.3 M366.1 M351.4 M272.1 M423.96 M
Current Liabilities151.6 M141.8 M151.5 M297.3 M166.2 M204.21 M
Total Debt192.6 M158.1 M191.2 M194 M96.1 M98.63 M
Debt Current29.6 M9.7 M9.3 M175.3 M11.4 M11.7 M
Debt Non Current192.6 M158.1 M181.9 M18.7 M84.7 M86.93 M
Operating Income40.5 M77.8 M81.2 M29.2 M115.8 M124.94 M
Gross Margin38.4739.0138.3735.4841.4136.49

About Knowles Cor Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Knowles Cor's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Knowles Cor using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Knowles Cor 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.
Knowles Corporation offers micro-acoustic microphones and balanced armature speakers, audio solutions, high performance capacitors, and radio frequency products for the consumer electronics, medtech, defense, electric vehicle, industrial, and communications markets. The company was founded in 1946 and is headquartered in Itasca, Illinois. Knowles Corp operates under Communication Equipment classification in the United States and is traded on New York Stock Exchange. It employs 7000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Knowles Cor without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Stock Tickers Now

   

Stock Tickers

Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
All  Next Launch Module

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Knowles Cor using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please see Knowles Cor Piotroski F Score and Knowles Cor Altman Z Score analysis. You can also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Complementary Tools for analysis

When running Knowles Cor price analysis, check to measure Knowles Cor'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 Knowles Cor is operating at the current time. Most of Knowles Cor's value examination focuses on studying past and present price action to predict the probability of Knowles Cor's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Knowles Cor's price. Additionally, you may evaluate how the addition of Knowles Cor to your portfolios can decrease your overall portfolio volatility.
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Is Knowles Cor'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 Knowles Cor. If investors know Knowles 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 Knowles Cor 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
(0.90) 
Market Capitalization
1.4 B
Quarterly Revenue Growth YOY
(0.23) 
Return On Assets
0.0442
Return On Equity
(0.10) 
The market value of Knowles Cor is measured differently than its book value, which is the value of Knowles that is recorded on the company's balance sheet. Investors also form their own opinion of Knowles Cor's value that differs from its market value or its book value, called intrinsic value, which is Knowles Cor'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 Knowles Cor's market value can be influenced by many factors that don't directly affect Knowles Cor'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 Knowles Cor's value and its price as these two are different measures arrived at by different means. Investors typically determine Knowles Cor value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Knowles Cor'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.