| HCXY Stock | | | USD 25.02 0.03 0.12% |
This module uses fundamental data of Hercules Capital to approximate the value of its Beneish M Score. Hercules Capital 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
Hercules Capital Piotroski F Score and
Hercules Capital Altman Z Score analysis.
For more information on how to buy Hercules Stock please use our
How to Invest in Hercules Capital guide.
At this time, Hercules Capital's
Net Debt is fairly stable compared to the past year.
Short and Long Term Debt Total is likely to rise to about 1.6
B in 2024, whereas
Long Term Debt is likely to drop slightly above 1
B in 2024. At this time, Hercules Capital's
Capex To Operating Cash Flow is fairly stable compared to the past year.
PFCF Ratio is likely to rise to 37.42 in 2024, whereas
Price To Sales Ratio is likely to drop 5.25 in 2024.
At this time, it appears that Hercules Capital is a possible manipulator. The earnings manipulation may begin if Hercules Capital'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 Hercules Capital 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 Hercules Capital'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.
-1.87
Beneish M Score - Possible Manipulator
| Elasticity of Receivables | |
| Financial Leverage Condition | |
Hercules Capital 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 Hercules Capital'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.
Hercules Capital 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 Hercules Capital's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Hercules Capital in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Hercules Capital's degree of accounting gimmicks and manipulations.
Click cells to compare fundamentals
About Hercules Capital 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.
Hercules Capital 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 Hercules Capital. 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.
Hercules Capital 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, Hercules Capital's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Hercules Capital's managers, analysts, and investors.
About Hercules Capital Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Hercules Capital's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Hercules Capital using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Hercules Capital 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.
Additional Tools for Hercules Stock Analysis
When running Hercules Capital's price analysis, check to
measure Hercules Capital'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 Hercules Capital is operating at the current time. Most of Hercules Capital's value examination focuses on studying past and present price action to
predict the probability of Hercules Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hercules Capital's price. Additionally, you may evaluate how the addition of Hercules Capital to your portfolios can decrease your overall portfolio volatility.