Simply Beneish M Score

SMPL
 Stock
  

USD 40.05  0.63  1.60%   

This module uses fundamental data of Simply Good to approximate the value of its Beneish M Score. Simply Good 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 Simply Good Piotroski F Score and Simply Good Altman Z Score analysis.
  
Simply Good Total Debt is relatively stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 112.14 Million. Issuance Repayment of Debt Securities is expected to hike to about 24.3 M this year, although the value of Long Term Debt to Equity will most likely fall to 0.27. Simply Good Return on Invested Capital is relatively stable at the moment as compared to the past year. The company's current value of Return on Invested Capital is estimated at 0.009368. Return on Sales is expected to hike to 0.33 this year, although Enterprise Value over EBITDA will most likely fall to 11.52.
At this time, it appears that Simply Good Foods is an unlikely manipulator. The earnings manipulation may begin if Simply Good'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 Simply Good 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 Simply Good'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.
-3.56
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset Quality0.75Focus
Expense Coverage1.19Focus
Gross Margin Strengs1.1Focus
Accruals Factor1.19Focus
Depreciation Resistance1.07Focus
Net Sales Growth0.76Focus
Financial Leverage Condition1.01Focus

Simply Good 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 Simply Good'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 Expense14 M15.4 M
Moderately Down
Increasing
Stable
Revenues890.6 M1.2 B
Way Down
Increasing
Slightly volatile
Property Plant and Equipment Net3.4 M3.6 M
Notably Down
Increasing
Very volatile
Operating Income145 M202.8 M
Way Down
Increasing
Slightly volatile
Net Cash Flow from Operations96.7 M110.6 M
Fairly Down
Increasing
Slightly volatile
Current Liabilities79.1 M102.2 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities505.2 M655.6 M
Significantly Down
Increasing
Slightly volatile
Investments695.7 M704 M
Fairly Down
Decreasing
Slightly volatile
Gross Margin41.9338.1252
Significantly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion991.3 K1.1 M
Fairly Down
Increasing
Slightly volatile
Total Debt112.1 M97.8 M
Fairly Up
Decreasing
Stable
Current Assets373.3 M351.6 M
Notably Up
Increasing
Slightly volatile
Total Assets1.7 B2.1 B
Significantly Down
Increasing
Slightly volatile

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

About Simply Good 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

991,323

Simply Good Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 991,323

About Simply Good Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Simply Good Foods's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Simply Good using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Simply Good Foods 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 Simply Good Foods Company operates as a consumer-packaged food and beverage company in North America and internationally. The Simply Good Foods Company was incorporated in 2017 and is headquartered in Denver, Colorado. Simply Good operates under Packaged Foods classification in the United States and is traded on NASDAQ Exchange. It employs 260 people.

Simply Good Investors Sentiment

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

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Additionally, take a look at Simply Good Piotroski F Score and Simply Good Altman Z Score analysis. You can also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running Simply Good Foods price analysis, check to measure Simply Good'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 Simply Good is operating at the current time. Most of Simply Good's value examination focuses on studying past and present price action to predict the probability of Simply Good's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Simply Good's price. Additionally, you may evaluate how the addition of Simply Good to your portfolios can decrease your overall portfolio volatility.
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Is Simply Good'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 Simply Good. If investors know Simply 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 Simply Good 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
0.58
Market Capitalization
B
Quarterly Revenue Growth YOY
0.055
Return On Assets
0.0613
Return On Equity
0.0826
The market value of Simply Good Foods is measured differently than its book value, which is the value of Simply that is recorded on the company's balance sheet. Investors also form their own opinion of Simply Good's value that differs from its market value or its book value, called intrinsic value, which is Simply Good'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 Simply Good's market value can be influenced by many factors that don't directly affect Simply Good'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 Simply Good's value and its price as these two are different measures arrived at by different means. Investors typically determine Simply Good value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Simply Good'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.