Northwest Beneish M Score

NWBI
 Stock
  

USD 12.73  0.09  0.70%   

This module uses fundamental data of Northwest Bancshares to approximate the value of its Beneish M Score. Northwest Bancshares 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 Northwest Bancshares Piotroski F Score and Northwest Bancshares Altman Z Score analysis.
  
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The current Long Term Debt is estimated to increase to about 259.3 M. The current Total Debt is estimated to increase to about 509.8 M. Northwest Bancshares Cash and Equivalents Turnover is most likely to increase slightly in the upcoming years. The last year's value of Cash and Equivalents Turnover was reported at 0.56. The current Revenue to Assets is estimated to increase to 0.0478, while PPandE Turnover is projected to decrease to 3.16.
At this time, it appears that Northwest Bancshares is an unlikely manipulator. The earnings manipulation may begin if Northwest Bancshares' 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 Northwest Bancshares 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 Northwest Bancshares' 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.
-3.96
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense Coverage1.07Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.07Focus
Depreciation Resistance1.0Focus
Net Sales Growth0.86Focus
Financial Leverage Condition1.01Focus

Northwest Bancshares 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 Northwest Bancshares' 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
Revenues485.2 M561.4 M
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense285.8 M307.8 M
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations162.7 M205.5 M
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion3.5 M3.4 M
Fairly Up
Decreasing
Slightly volatile
Total Assets11.7 B14.5 B
Significantly Down
Increasing
Slightly volatile
Investments10.3 B11 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net136.8 M133.5 M
Fairly Up
Decreasing
Slightly volatile
Total Liabilities10.3 B12.9 B
Significantly Down
Increasing
Slightly volatile
Total Debt509.8 M371.4 M
Significantly Up
Decreasing
Slightly volatile
Operating Income146 M162.3 M
Moderately Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Northwest Bancshares 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

3.53 Million

Share
Northwest Bancshares Depreciation Amortization and Accretion is most likely to decrease significantly in the upcoming years. The last year's value of Depreciation Amortization and Accretion was reported at 3.44 Million

Northwest Bancshares 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 Northwest Bancshares. 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)
Revenues469.34 M467.48 M516.79 M566.33 M561.4 M485.17 M
Total Assets9.36 B9.61 B10.49 B13.81 B14.5 B11.7 B
Property Plant and Equipment Net166.07 M157.61 M145.89 M148.36 M133.52 M136.76 M
Depreciation Amortization and Accretion15.42 M14.29 M8.12 M3.82 M3.44 M3.53 M
Selling General and Administrative Expense235.2 M256.49 M252.13 M267.67 M307.83 M285.75 M
Total Liabilities8.16 B8.35 B9.14 B12.27 B12.92 B10.34 B
Total Debt290.99 M260.28 M388.9 M412.69 M371.42 M509.77 M
Operating Income108.29 M135.91 M133.91 M141.11 M162.28 M145.96 M
Net Cash Flow from Operations156.06 M138.91 M127.46 M140.44 M205.46 M162.74 M
Investments8.35 B8.57 B8.84 B9.6 B11.04 B10.31 B

About Northwest Bancshares Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Northwest Bancshares's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Northwest Bancshares using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Northwest Bancshares 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.
Northwest Bancshares, Inc. operates as the holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Columbus, Ohio. Northwest Bancshares operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 2268 people.

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Additionally, see Northwest Bancshares Piotroski F Score and Northwest Bancshares Altman Z Score analysis. Note that the Northwest Bancshares information on this page should be used as a complementary analysis to other Northwest Bancshares' 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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When running Northwest Bancshares price analysis, check to measure Northwest Bancshares' 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 Northwest Bancshares is operating at the current time. Most of Northwest Bancshares' value examination focuses on studying past and present price action to predict the probability of Northwest Bancshares' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Northwest Bancshares' price. Additionally, you may evaluate how the addition of Northwest Bancshares to your portfolios can decrease your overall portfolio volatility.
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Is Northwest Bancshares' 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 Northwest Bancshares. If investors know Northwest 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 Northwest Bancshares 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
-0.31
Market Capitalization
1.6 B
Quarterly Revenue Growth YOY
-0.15
Return On Assets
0.0099
Return On Equity
0.0929
The market value of Northwest Bancshares is measured differently than its book value, which is the value of Northwest that is recorded on the company's balance sheet. Investors also form their own opinion of Northwest Bancshares' value that differs from its market value or its book value, called intrinsic value, which is Northwest Bancshares' 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 Northwest Bancshares' market value can be influenced by many factors that don't directly affect Northwest Bancshares' 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 Northwest Bancshares' value and its price as these two are different measures arrived at by different means. Investors typically determine Northwest Bancshares value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northwest Bancshares' 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.