Kura Oncology Beneish M Score

KURA
 Stock
  

USD 14.98  0.28  1.90%   

This module uses fundamental data of Kura Oncology to approximate the value of its Beneish M Score. Kura Oncology 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 Kura Oncology Piotroski F Score and Kura Oncology Altman Z Score analysis.
  
Kura Oncology Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 6.88 Million. The current year Debt Non Current is expected to grow to about 5.4 M, whereas Debt Current is forecasted to decline to about 2.2 M. Kura Oncology Long Term Debt to Equity is projected to slightly decrease based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.008001. The current year Total Assets Per Share is expected to grow to 8.65, whereas Cash Flow Per Share is forecasted to decline to (1.69) .
At this time, it appears that Kura Oncology is an unlikely manipulator. The earnings manipulation may begin if Kura Oncology'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 Kura Oncology 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 Kura Oncology'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.
-4.88
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset Quality1.0Focus
Expense CoverageN/AFocus
Gross Margin StrengsN/AFocus
Accruals FactorN/AFocus
Depreciation Resistance1.0Focus
Net Sales GrowthN/AFocus
Financial Leverage Condition1.03Focus

Kura Oncology 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 Kura Oncology'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 Expense50.2 M46.5 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables228.7 K201.6 K
Moderately Up
Decreasing
Slightly volatile
Property Plant and Equipment Net8.9 M8.2 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current6.3 MM
Significantly Up
Increasing
Slightly volatile
Current Liabilities24.2 M22.5 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities29.6 M27.4 M
Significantly Up
Increasing
Slightly volatile
Investments Current461 M427.3 M
Significantly Up
Increasing
Slightly volatile
Investments461 M427.3 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion602.1 K558 K
Significantly Up
Increasing
Slightly volatile
Debt Non Current5.4 M4.6 M
Fairly Up
Decreasing
Stable
Debt Current2.2 M2.3 M
Fairly Down
Increasing
Stable
Total Debt8.4 M6.9 M
Fairly Up
Increasing
Slightly volatile
Assets Non Current12.7 M11.8 M
Significantly Up
Increasing
Slightly volatile
Current Assets563.5 M522.3 M
Significantly Up
Increasing
Slightly volatile
Total Assets576.2 M534.1 M
Significantly Up
Increasing
Slightly volatile

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

About Kura Oncology 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

602,053

Kura Oncology 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 558,000

Kura Oncology 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 Kura Oncology. 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)
Total Assets95.85 M182.38 M241.97 M647.21 M534.05 M576.21 M
Current Assets94.64 M181.2 M239.6 M637.29 M522.29 M563.52 M
Assets Non Current1.21 M1.18 M2.37 M9.92 M11.76 M12.69 M
Total Liabilities15.99 M21.39 M23.19 M36.31 M27.44 M29.61 M
Current Liabilities10.03 M13.62 M15.56 M26.02 M22.45 M24.23 M
Debt Non Current5.57 M7.5 M7.25 M9.89 M4.61 M5.38 M
Operating Income(36.08 M)(62.88 M)(67.48 M)(91.9 M)(131.26 M)(134.71 M)
Investments81.71 M162.87 M210.76 M307.83 M427.29 M461.02 M
Investments Current81.71 M162.87 M210.76 M307.83 M427.29 M461.02 M

About Kura Oncology Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Kura Oncology's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Kura Oncology using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Kura Oncology 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.
Kura Oncology, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer in the United States. Kura Oncology, Inc. was founded in 2014 and is headquartered in San Diego, California. Kura Oncology operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 123 people.

Kura Oncology Investors Sentiment

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

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Please see Kura Oncology Piotroski F Score and Kura Oncology Altman Z Score analysis. You can also try Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Complementary Tools for analysis

When running Kura Oncology price analysis, check to measure Kura Oncology'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 Kura Oncology is operating at the current time. Most of Kura Oncology's value examination focuses on studying past and present price action to predict the probability of Kura Oncology's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Kura Oncology's price. Additionally, you may evaluate how the addition of Kura Oncology to your portfolios can decrease your overall portfolio volatility.
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Is Kura Oncology'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 Kura Oncology. If investors know Kura Oncology 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 Kura Oncology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
998.8 M
Return On Assets
(0.17) 
Return On Equity
(0.28) 
The market value of Kura Oncology is measured differently than its book value, which is the value of Kura Oncology that is recorded on the company's balance sheet. Investors also form their own opinion of Kura Oncology's value that differs from its market value or its book value, called intrinsic value, which is Kura Oncology'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 Kura Oncology's market value can be influenced by many factors that don't directly affect Kura Oncology'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 Kura Oncology's value and its price as these two are different measures arrived at by different means. Investors typically determine Kura Oncology value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kura Oncology'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.