Lands Beneish M Score

LE -  USA Stock  

USD 11.38  0.17  1.47%

This module uses fundamental data of Lands End to approximate the value of its Beneish M Score. Lands End 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. Additionally, see Lands End Piotroski F Score and Lands End Altman Z Score analysis.
  
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Lands End Debt Non Current is projected to decrease significantly based on the last few years of reporting. The past year's Debt Non Current was at 267.2 Million. The current year Long Term Debt to Equity is expected to grow to 1.34, whereas Debt Current is forecasted to decline to about 16 M. Lands End Calculated Tax Rate is projected to decrease significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 9.70. The current year Operating Margin is expected to grow to 3.31, whereas Net Current Assets as percentage of Total Assets are forecasted to decline to 23.34.
At this time, it appears that Lands End is an unlikely manipulator. The earnings manipulation may begin if Lands End'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 Lands End 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 Lands End'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.
-2.75
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.07Focus
Asset QualityN/AFocus
Expense Coverage1.03Focus
Gross Margin Strengs1.07Focus
Accruals Factor1.03Focus
Depreciation Resistance1.19Focus
Net Sales Growth0.99Focus
Financial Leverage Condition1.11Focus

Lands End 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 Lands End'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
Revenues1.6 B1.6 B
Slightly Down
Increasing
Stable
Selling General and Administrative Expense587.2 M571.8 M
Fairly Up
Decreasing
Stable
Net Cash Flow from Operations51.5 M70.6 M
Way Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion37 M39.2 M
Notably Down
Increasing
Slightly volatile
Total Assets1.1 BB
Significantly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net188.2 M161.3 M
Fairly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables53 M49.7 M
Notably Up
Increasing
Slightly volatile
Total Liabilities734.3 M629.9 M
Fairly Up
Increasing
Slightly volatile
Current Assets553.9 M506.9 M
Significantly Up
Increasing
Stable
Assets Non Current577.9 M529.7 M
Significantly Up
Decreasing
Slightly volatile
Current Liabilities313.2 M311.4 M
Slightly Up
Increasing
Slightly volatile
Liabilities Non Current421.2 M318.5 M
Significantly Up
Increasing
Stable
Total Debt376.9 M286.6 M
Significantly Up
Decreasing
Slightly volatile
Debt Current16 M19.4 M
Significantly Down
Increasing
Slightly volatile
Debt Non Current360.9 M267.2 M
Significantly Up
Decreasing
Slightly volatile
Operating Income65.9 M79.8 M
Significantly Down
Decreasing
Very volatile
Gross Margin0.450.422
Notably Up
Decreasing
Slightly volatile

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

About Lands End 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

933.41 Million

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Lands End 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 945.16 Million

About Lands End Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Lands End's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Lands End using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Lands End 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.
Lands End, Inc. operates as a uni-channel retailer of casual clothing, accessories, footwear, and home products in the United States, Europe, Asia, and internationally. Lands End, Inc. was founded in 1963 and is headquartered in Dodgeville, Wisconsin. Lands End operates under Specialty Retail classification in the United States and is traded on NASDAQ Exchange. It employs 3000 people.

Lands End Investors Sentiment

The influence of Lands End'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 Lands. 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.

Lands End Implied Volatility

    
  114.24  
Lands End's implied volatility exposes the market's sentiment of Lands End stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Lands End's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Lands End stock will not fluctuate a lot when Lands End's options are near their expiration.
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 Lands End 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, Lands End's short interest history, or implied volatility extrapolated from Lands End options trading.

Current Sentiment - LE

Lands End Investor Sentiment

Larger part of Macroaxis users are now bullish on Lands End. What is your trading attitude regarding investing in Lands End? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Additionally, see Lands End Piotroski F Score and Lands End Altman Z Score analysis. Note that the Lands End information on this page should be used as a complementary analysis to other Lands End'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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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