Fiberweb Limited Stock Beneish M Score

FIBERWEB   63.00  3.00  5.00%   
This module uses fundamental data of Fiberweb to approximate the value of its Beneish M Score. Fiberweb 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 Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Fiberweb Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.
  
At present, Fiberweb's Short and Long Term Debt is projected to increase significantly based on the last few years of reporting.
At this time, Fiberweb's M Score is inapplicable. The earnings manipulation may begin if Fiberweb'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 Fiberweb 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 Fiberweb'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.
-2.69
Beneish M Score - Inapplicable
Elasticity of Receivables

0.78

Focus
Asset Quality

0.94

Focus
Expense Coverage

0.64

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.64

Focus
Depreciation Resistance

1.08

Focus
Net Sales Growth

1.22

Focus
Financial Leverage Condition

1.13

Focus

Fiberweb 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 Fiberweb'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 Receivables118.9 M125.2 M
Notably Down
Slightly volatile
Total RevenueB860 M
Fairly Up
Slightly volatile
Total Assets1.4 B1.7 B
Fairly Down
Slightly volatile
Total Current Assets468.4 M520.5 M
Moderately Down
Slightly volatile
Non Current Assets Total970.6 M1.2 B
Significantly Down
Slightly volatile
Property Plant Equipment1.1 B1.4 B
Significantly Down
Slightly volatile
Depreciation And Amortization30 M39.9 M
Way Down
Slightly volatile
Selling General Administrative7.5 M9.6 M
Significantly Down
Slightly volatile
Total Current Liabilities28.8 M30.3 M
Notably Down
Pretty Stable
Non Current Liabilities Total65.2 M68.7 M
Notably Down
Slightly volatile
Total Cash From Operating ActivitiesM6.3 M
Notably Down
Slightly volatile
Short Term Investments2.6 M2.7 M
Notably Down
Slightly volatile

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

About Fiberweb 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 And Amortization

29.97 Million

At present, Fiberweb's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Fiberweb 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 Fiberweb. 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 Receivables366.9M531.1M504.4M88.1M125.2M118.9M
Total Revenue981.8M1.1B952.1M661.1M860.0M1.0B
Total Assets1.8B1.9B1.8B1.7B1.7B1.4B
Total Current Assets770.0M857.2M816.6M478.1M520.5M468.4M
Net Debt(21.2M)(66.8M)(62.9M)61.3M103.1M98.0M
Operating Income129.2M178.9M128.7M(2.6M)76.0M102.9M
Investments(38.5M)(156.9M)(99.5M)(260.9M)(22.1M)(23.2M)

About Fiberweb Fundamental Analysis

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

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Other Information on Investing in Fiberweb Stock

Fiberweb financial ratios help investors to determine whether Fiberweb Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Fiberweb with respect to the benefits of owning Fiberweb security.