Manitowoc Beneish M Score

MTW
 Stock
  

USD 11.06  0.16  1.43%   

This module uses fundamental data of Manitowoc to approximate the value of its Beneish M Score. Manitowoc 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 Manitowoc Piotroski F Score and Manitowoc Altman Z Score analysis.
  
Total Debt is likely to climb to about 616.1 M in 2022. Debt Current is likely to climb to about 7.5 M in 2022. Manitowoc Return on Investment is fairly stable at the moment as compared to the past year. Manitowoc reported Return on Investment of 4.59 in 2021. Cash Flow Per Share is likely to climb to 2.34 in 2022, whereas Revenue to Assets are likely to drop 0.93 in 2022.
At this time, it appears that Manitowoc is an unlikely manipulator. The earnings manipulation may begin if Manitowoc'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 Manitowoc 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 Manitowoc'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.
-2.44
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.83Focus
Asset Quality1.49Focus
Expense Coverage1.0Focus
Gross Margin Strengs1.01Focus
Accruals Factor1.0Focus
Depreciation Resistance0.91Focus
Net Sales Growth1.1Focus
Financial Leverage Condition1.14Focus

Manitowoc 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 Manitowoc'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
Revenues1.9 B1.7 B
Significantly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense285.5 M258.5 M
Significantly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations82.2 M76.2 M
Significantly Up
Decreasing
Stable
Depreciation Amortization and Accretion50.5 M46.9 M
Significantly Up
Decreasing
Slightly volatile
Total AssetsB1.8 B
Fairly Up
Decreasing
Slightly volatile
Investments20.8 M16.7 M
Fairly Up
Decreasing
Stable
Investments Current20.8 M16.7 M
Fairly Up
Decreasing
Stable
Property Plant and Equipment Net388.4 M399.4 M
Fairly Down
Decreasing
Slightly volatile
Trade and Non Trade Receivables214.9 M236.1 M
Significantly Down
Decreasing
Slightly volatile
Total Liabilities1.4 B1.1 B
Significantly Up
Decreasing
Slightly volatile
Current Assets921.3 M941.8 M
Fairly Down
Decreasing
Slightly volatile
Assets Non Current1.1 B833.4 M
Significantly Up
Decreasing
Slightly volatile
Current Liabilities581.6 M521 M
Moderately Up
Decreasing
Slightly volatile
Liabilities Non Current837.3 M591.8 M
Significantly Up
Decreasing
Slightly volatile
Total Debt616.1 M436.4 M
Significantly Up
Decreasing
Slightly volatile
Debt Current7.5 M7.3 M
Fairly Up
Decreasing
Slightly volatile
Debt Non Current598.2 M429.1 M
Significantly Up
Decreasing
Slightly volatile
Operating Income63.7 M46.5 M
Significantly Up
Decreasing
Slightly volatile
Gross Margin0.180.179
Slightly Up
Decreasing
Slightly volatile

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

About Manitowoc 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

303.38 Million

Manitowoc Operating Expenses is fairly stable at the moment as compared to the past year. Manitowoc reported Operating Expenses of 260.7 Million in 2021

Manitowoc 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 Manitowoc. 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)
Revenues1.58 B1.85 B1.83 B1.44 B1.72 B1.89 B
Total Assets1.61 B1.54 B1.62 B1.6 B1.78 B2.05 B
Current Assets790.4 M842.9 M872.4 M866 M941.8 M921.28 M
Assets Non Current817.4 M699 M745.3 M737.5 M833.4 M1.13 B
Total Liabilities930.3 M940.6 M971.8 M960 M1.11 B1.42 B
Current Liabilities453 M496.6 M440.9 M435.8 M521 M581.57 M
Total Debt274.9 M273.1 M349.8 M339.3 M436.4 M616.05 M
Debt Current8.2 M6.4 M3.8 M10.5 M7.3 M7.49 M
Operating Income8.4 M(19.3 M)108.4 M38.6 M46.5 M63.71 M
Investments31.1 M19.4 M17.4 M13.6 M16.7 M20.81 M
Investments Current31.1 M19.4 M17.4 M13.6 M16.7 M20.81 M

About Manitowoc Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Manitowoc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Manitowoc using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Manitowoc 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.
The Manitowoc Company, Inc. provides engineered lifting solutions in the Americas, Europe, Africa, the Middle East, and the Asia Pacific. The Manitowoc Company, Inc. was founded in 1902 and is headquartered in Milwaukee, Wisconsin. Manitowoc operates under Farm Heavy Construction Machinery classification in the United States and is traded on New York Stock Exchange. It employs 4600 people.

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Additionally, see Manitowoc Piotroski F Score and Manitowoc Altman Z Score analysis. Note that the Manitowoc information on this page should be used as a complementary analysis to other Manitowoc'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 CEO Directory module to screen CEOs from public companies around the world.

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When running Manitowoc price analysis, check to measure Manitowoc'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 Manitowoc is operating at the current time. Most of Manitowoc's value examination focuses on studying past and present price action to predict the probability of Manitowoc's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Manitowoc's price. Additionally, you may evaluate how the addition of Manitowoc to your portfolios can decrease your overall portfolio volatility.
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Is Manitowoc'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 Manitowoc. If investors know Manitowoc 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 Manitowoc 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
-0.16
Market Capitalization
389.1 M
Quarterly Revenue Growth YOY
0.072
Return On Assets
0.0287
Return On Equity
0.022
The market value of Manitowoc is measured differently than its book value, which is the value of Manitowoc that is recorded on the company's balance sheet. Investors also form their own opinion of Manitowoc's value that differs from its market value or its book value, called intrinsic value, which is Manitowoc'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 Manitowoc's market value can be influenced by many factors that don't directly affect Manitowoc'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 Manitowoc's value and its price as these two are different measures arrived at by different means. Investors typically determine Manitowoc value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Manitowoc'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.