State Beneish M Score

STT
 Stock
  

USD 77.72  1.00  1.27%   

This module uses fundamental data of State Street to approximate the value of its Beneish M Score. State Street 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 State Street Piotroski F Score and State Street Altman Z Score analysis.
  
Total Debt is likely to gain to about 25.7 B in 2022, whereas Long Term Debt is likely to drop slightly above 11.6 B in 2022. State Street Price to Sales Ratio is comparatively stable at the moment as compared to the past year. State Street reported Price to Sales Ratio of 3.43 in 2021. Return on Average Assets is likely to gain to 0.98 in 2022, whereas Total Assets Per Share are likely to drop 713.86 in 2022.
At this time, it appears that State Street Corp is an unlikely manipulator. The earnings manipulation may begin if State Street'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 State Street 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 State Street'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.
-2.91
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.9Focus
Asset QualityN/AFocus
Expense Coverage0.94Focus
Gross Margin Strengs0.99Focus
Accruals Factor0.94Focus
Depreciation Resistance0.88Focus
Net Sales Growth0.92Focus
Financial Leverage Condition1.03Focus

State Street 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 State Street'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 ExpenseB4.7 B
Fairly Down
Increasing
Slightly volatile
Revenues11 B12 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade ReceivablesB2.4 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net1.7 B1.9 B
Moderately Down
Increasing
Slightly volatile
Operating Income1.9 B1.9 B
Sufficiently Down
Decreasing
Very volatile
Net Cash Flow from Operations(6.9 B)(6.7 B)
Fairly Down
Decreasing
Stable
Total Liabilities245.8 B287.3 B
Fairly Down
Increasing
Slightly volatile
Investments97.4 B107.9 B
Moderately Down
Increasing
Stable
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion895.9 M830.3 M
Significantly Up
Increasing
Slightly volatile
Total Debt25.7 B20 B
Significantly Up
Decreasing
Stable
Total Assets269.6 B314.6 B
Fairly Down
Increasing
Slightly volatile

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

About State Street 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

6.3 Billion

State Street Operating Expenses is comparatively stable at the moment as compared to the past year. State Street reported Operating Expenses of 7.27 Billion in 2021

State Street 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 State Street. 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)
Revenues11.77 B12.97 B13.13 B12.08 B12.03 B11.05 B
Total Assets238.43 B244.63 B245.61 B314.71 B314.62 B269.56 B
Total Liabilities216.11 B219.84 B221.18 B288.51 B287.26 B245.78 B
Net Cash Flow from Operations6.93 B10.46 B5.69 B3.53 B(6.71 B)(6.89 B)

State Street ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, State Street's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to State Street's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About State Street Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze State Street Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of State Street using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of State Street Corp 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.
State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. State Street Corporation was founded in 1792 and is headquartered in Boston, Massachusetts. State Street operates under Asset Management classification in the United States and is traded on New York Stock Exchange. It employs 41354 people.

State Street Investors Sentiment

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

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Additionally, take a look at State Street Piotroski F Score and State Street Altman Z Score analysis. You can also try Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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When running State Street Corp price analysis, check to measure State Street'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 State Street is operating at the current time. Most of State Street's value examination focuses on studying past and present price action to predict the probability of State Street's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move State Street's price. Additionally, you may evaluate how the addition of State Street to your portfolios can decrease your overall portfolio volatility.
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Is State Street'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 State Street. If investors know State 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 State Street 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
(0.08) 
Market Capitalization
28.5 B
Quarterly Revenue Growth YOY
(0.011) 
Return On Assets
0.0087
Return On Equity
0.1
The market value of State Street Corp is measured differently than its book value, which is the value of State that is recorded on the company's balance sheet. Investors also form their own opinion of State Street's value that differs from its market value or its book value, called intrinsic value, which is State Street'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 State Street's market value can be influenced by many factors that don't directly affect State Street'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 State Street's value and its price as these two are different measures arrived at by different means. Investors typically determine State Street value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, State Street'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.