Dover Stock Beneish M Score

DOV Stock  USD 205.90  0.09  0.04%   
This module uses fundamental data of Dover to approximate the value of its Beneish M Score. Dover 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. Check out Dover Piotroski F Score and Dover Altman Z Score analysis.
For more information on how to buy Dover Stock please use our How to Invest in Dover guide.
  
At this time, Dover's Short and Long Term Debt Total is fairly stable compared to the past year. Net Debt is likely to climb to about 3.4 B in 2024, whereas Long Term Debt is likely to drop slightly above 2.3 B in 2024. At this time, Dover's EV To Sales is fairly stable compared to the past year. Free Cash Flow Per Share is likely to climb to 8.59 in 2024, whereas ROIC is likely to drop 0.13 in 2024.
At this time, it appears that Dover is an unlikely manipulator. The earnings manipulation may begin if Dover'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 Dover 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 Dover'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.
-3.16
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.97

Focus
Asset Quality

0.89

Focus
Expense Coverage

1.34

Focus
Gross Margin Strengs

0.79

Focus
Accruals Factor

1.34

Focus
Depreciation Resistance

1.32

Focus
Net Sales Growth

0.69

Focus
Financial Leverage Condition

1.5

Focus

Dover 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 Dover'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
Net Receivables958.3 M1.4 B
Way Down
Slightly volatile
Total Revenue5.8 B8.4 B
Way Down
Pretty Stable
Total Assets6.5 B11.3 B
Way Down
Slightly volatile
Total Current Assets2.2 B3.4 B
Way Down
Pretty Stable
Non Current Assets Total4.3 BB
Way Down
Slightly volatile
Property Plant Equipment970.8 M1.2 B
Fairly Down
Very volatile
Depreciation And Amortization189.2 M317.5 M
Way Down
Very volatile
Selling General Administrative1.6 B1.7 B
Significantly Down
Pretty Stable
Total Current Liabilities1.4 B2.4 B
Way Down
Slightly volatile
Non Current Liabilities Total2.1 B3.8 B
Way Down
Slightly volatile
Short Term Debt318.1 M517.1 M
Way Down
Pretty Stable
Long Term Debt2.3 BB
Significantly Down
Slightly volatile
Operating Income763.3 M1.4 B
Way Down
Pretty Stable
Total Cash From Operating Activities811.6 M1.3 B
Way Down
Pretty Stable
Gross Profit Margin0.290.3656
Significantly Down
Slightly volatile

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

About Dover 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.

Other Operating Expenses

5.03 Billion

At this time, Dover's Other Operating Expenses is fairly stable compared to the past year.

Dover 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 Dover. 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.
201920202021202220232024 (projected)
Net Receivables1.2B1.1B1.3B1.5B1.4B958.3M
Total Revenue7.1B6.7B7.9B8.5B8.4B5.8B
Total Assets8.7B9.2B10.4B10.9B11.3B6.5B
Total Current Assets2.5B2.6B3.1B3.4B3.4B2.2B
Net Debt2.7B2.6B2.7B3.3B3.3B3.4B
Short Term Debt84.7M48.8M148.8M778.4M517.1M318.1M
Long Term Debt3.0B3.1B3.0B2.9B3.0B2.3B
Operating Income974.9M933.0M1.3B1.4B1.4B763.3M
Investments(384.3M)(481.4M)(992.8M)(540.9M)(275.1M)(288.9M)

Dover 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, Dover's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Dover's managers, analysts, and investors.
Environmental
Governance
Social

About Dover Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Dover's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Dover using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Dover 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.

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Additional Tools for Dover Stock Analysis

When running Dover's price analysis, check to measure Dover'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 Dover is operating at the current time. Most of Dover's value examination focuses on studying past and present price action to predict the probability of Dover's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dover's price. Additionally, you may evaluate how the addition of Dover to your portfolios can decrease your overall portfolio volatility.