Uniti Beneish M Score

UNIT
 Stock
  

USD 10.09  0.14  1.37%   

This module uses fundamental data of Uniti to approximate the value of its Beneish M Score. Uniti 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. Also, please take a look at Uniti Piotroski F Score and Uniti Altman Z Score analysis.
  
Uniti Earnings per Basic Share are comparatively stable at the moment as compared to the past year. Uniti reported Earnings per Basic Share of 0.53 in 2021. Earnings per Diluted Share is likely to gain to 0.55 in 2022, whereas Accrued Expenses Turnover is likely to drop 8.29 in 2022.
At this time, it appears that Uniti Group is an unlikely manipulator. The earnings manipulation may begin if Uniti'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 Uniti 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 Uniti'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.
-3.9
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense CoverageN/AFocus
Gross Margin StrengsN/AFocus
Accruals FactorN/AFocus
Depreciation ResistanceN/AFocus
Net Sales Growth0.88Focus
Financial Leverage ConditionN/AFocus

Uniti 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 Uniti'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
Revenues964.5 M1.1 B
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations432.4 M499.2 M
Fairly Down
Increasing
Slightly volatile
Total Assets4.3 B4.8 B
Moderately Down
Increasing
Slightly volatile
Total Liabilities6.1 B6.9 B
Fairly Down
Increasing
Slightly volatile
Current Assets136.9 M97.4 M
Significantly Up
Decreasing
Very volatile
Current Liabilities1.8 B1.6 B
Significantly Up
Increasing
Slightly volatile
Operating Income577.7 M535.4 M
Significantly Up
Increasing
Stable

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

About Uniti 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.

Earnings Before Interest Taxes and Depreciation Amortization EBITDA

687.22 Million

Uniti Earnings Before Interest Taxes and Depreciation Amortization EBITDA are comparatively stable at the moment as compared to the past year. Uniti reported Earnings Before Interest Taxes and Depreciation Amortization EBITDA of 825.22 Million in 2021

Uniti 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 Uniti. 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)
Revenues916.03 M1.02 B1.06 B1.07 B1.1 B964.52 M
Total Assets4.33 B4.59 B5.02 B4.73 B4.81 B4.3 B
Current Assets103.42 M142.09 M220.44 M140.49 M97.36 M136.88 M
Total Liabilities5.56 B6.09 B6.58 B6.87 B6.94 B6.08 B
Current Liabilities753.43 M962.28 M1.39 B1.72 B1.64 B1.77 B
Operating Income258.32 M330.71 M376.69 M(323.25 M)535.44 M577.71 M
Net Cash Flow from Operations405.26 M472.82 M616.98 M157.23 M499.16 M432.38 M

About Uniti Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Uniti Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Uniti using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Uniti Group 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.
Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. As of September 30, 2020, Uniti owns 6.7 million fiber strand miles and other communications real estate throughout the United States. Uniti operates under REITSpecialty classification in the United States and is traded on NASDAQ Exchange. It employs 754 people.

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Our tools can tell you how much better you can do entering a position in Uniti without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Also, please take a look at Uniti Piotroski F Score and Uniti Altman Z Score analysis. Note that the Uniti Group information on this page should be used as a complementary analysis to other Uniti'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Is Uniti'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 Uniti. If investors know Uniti 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 Uniti 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
0.072
Market Capitalization
2.4 B
Quarterly Revenue Growth YOY
0.059
Return On Assets
0.0738
The market value of Uniti Group is measured differently than its book value, which is the value of Uniti that is recorded on the company's balance sheet. Investors also form their own opinion of Uniti's value that differs from its market value or its book value, called intrinsic value, which is Uniti'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 Uniti's market value can be influenced by many factors that don't directly affect Uniti'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 Uniti's value and its price as these two are different measures arrived at by different means. Investors typically determine Uniti value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Uniti'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.