Seneca Beneish M Score

SENEA
 Stock
  

USD 62.99  1.97  3.03%   

This module uses fundamental data of Seneca Foods to approximate the value of its Beneish M Score. Seneca Foods 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, take a look at Seneca Foods Piotroski F Score and Seneca Foods Altman Z Score analysis.
  
Seneca Foods Debt Current is projected to increase significantly based on the last few years of reporting. The past year's Debt Current was at 252.2 Million. The current year Debt Non Current is expected to grow to about 37.8 M, whereas Total Debt is forecasted to decline to about 250.8 M. Seneca Foods 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 0.22. The current year Calculated Tax Rate is expected to grow to 27.43, whereas Interest Coverage is forecasted to decline to 10.17.
At this time, it appears that Seneca Foods Cp is an unlikely manipulator. The earnings manipulation may begin if Seneca Foods' 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 Seneca Foods 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 Seneca Foods' 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.
-2.65
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.98Focus
Asset Quality0.74Focus
Expense Coverage0.95Focus
Gross Margin Strengs0.88Focus
Accruals Factor0.95Focus
Depreciation Resistance0.91Focus
Net Sales Growth0.92Focus
Financial Leverage Condition1.06Focus

Seneca Foods 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 Seneca Foods' 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 Expense58.1 M66.2 M
Fairly Down
Increasing
Slightly volatile
Revenues1.3 B1.4 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables62.4 M69.1 M
Moderately Down
Increasing
Stable
Property Plant and Equipment Net163.1 M170 M
Sufficiently Down
Decreasing
Very volatile
Operating Income58.2 M70.3 M
Significantly Down
Increasing
Stable
Net Cash Flow from Operations38.3 M30.2 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current83.8 M81.6 M
Fairly Up
Decreasing
Slightly volatile
Current Liabilities191.5 M173.2 M
Significantly Up
Increasing
Very volatile
Total Liabilities377.1 M363.2 M
Sufficiently Up
Decreasing
Very volatile
Investments Current7.8 MM
Fairly Down
Increasing
Stable
Investments7.8 MM
Fairly Down
Increasing
Stable
Gross Margin9.4210.6789
Fairly Down
Increasing
Stable
Depreciation Amortization and Accretion26.9 M25 M
Notably Up
Increasing
Stable
Debt Non Current37.8 M36.9 M
Fairly Up
Decreasing
Slightly volatile
Debt Current272.1 M252.2 M
Significantly Up
Increasing
Slightly volatile
Total Debt250.8 M289.1 M
Fairly Down
Increasing
Slightly volatile
Assets Non Current181.5 M199.3 M
Significantly Down
Increasing
Slightly volatile
Current Assets544.6 M555.4 M
Fairly Down
Decreasing
Very volatile
Total Assets858.1 M947 M
Moderately Down
Increasing
Slightly volatile

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

About Seneca Foods 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

26.85 Million

Seneca Foods 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 25 Million

Seneca Foods 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 Seneca Foods. 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)
Revenues1.31 B1.2 B1.34 B1.47 B1.39 B1.28 B
Total Assets1.07 B848.88 M909.31 M909.35 M947.03 M858.15 M
Current Assets778.01 M603.25 M551.6 M516.3 M555.44 M544.62 M
Total Liabilities673.5 M431.4 M514.95 M331.53 M363.19 M377.07 M
Current Liabilities194.35 M112.38 M149.65 M158.13 M173.16 M191.53 M
Operating Income(5.27 M)(38.08 M)70.52 M181.07 M70.34 M58.17 M
Gross Margin5.673.2910.6215.8210.689.42

About Seneca Foods Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Seneca Foods Cp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Seneca Foods using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Seneca Foods Cp 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.
Seneca Foods Corporation provides packaged fruits and vegetables in the United States and internationally. The company was incorporated in 1949 and is headquartered in Marion, New York. Seneca Foods operates under Packaged Foods classification in the United States and is traded on NASDAQ Exchange. It employs 2900 people.
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 Seneca Foods 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, Seneca Foods' short interest history, or implied volatility extrapolated from Seneca Foods options trading.

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Additionally, take a look at Seneca Foods Piotroski F Score and Seneca Foods Altman Z Score analysis. Note that the Seneca Foods Cp information on this page should be used as a complementary analysis to other Seneca Foods' 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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When running Seneca Foods Cp price analysis, check to measure Seneca Foods' 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 Seneca Foods is operating at the current time. Most of Seneca Foods' value examination focuses on studying past and present price action to predict the probability of Seneca Foods' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Seneca Foods' price. Additionally, you may evaluate how the addition of Seneca Foods to your portfolios can decrease your overall portfolio volatility.
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Is Seneca Foods' 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 Seneca Foods. If investors know Seneca 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 Seneca Foods 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
0.55
Market Capitalization
497.2 M
Quarterly Revenue Growth YOY
0.18
Return On Assets
0.0323
Return On Equity
0.0805
The market value of Seneca Foods Cp is measured differently than its book value, which is the value of Seneca that is recorded on the company's balance sheet. Investors also form their own opinion of Seneca Foods' value that differs from its market value or its book value, called intrinsic value, which is Seneca Foods' 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 Seneca Foods' market value can be influenced by many factors that don't directly affect Seneca Foods' 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 Seneca Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine Seneca Foods value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Seneca Foods' 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.