This module uses fundamental data of Heartland Express to approximate the value of its Beneish M Score. Heartland Express 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 Heartland Express Piotroski F Score and Heartland Express Altman Z Score analysis.
At present, Heartland Express' Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Short and Long Term Debt is expected to grow to about 11.4 M, whereas Short Term Debt is forecasted to decline to about 12 M. At present, Heartland Express' Operating Cash Flow Per Share is projected to increase slightly based on the last few years of reporting. The current year's Average Payables is expected to grow to about 8.5 M, whereas Dividend Yield is forecasted to decline to 0.01.
At this time, it appears that Heartland Express is an unlikely manipulator. The earnings manipulation may begin if Heartland Express' 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 Heartland Express 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 Heartland Express' 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.
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 Heartland Express' 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.
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 Heartland Express' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Heartland Express in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Heartland Express' degree of accounting gimmicks and manipulations.
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.
Accumulated Depreciation
(291.94 Million)
At present, Heartland Express' Accumulated Depreciation is projected to decrease significantly based on the last few years of reporting.
Heartland Express 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 Heartland Express. 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.
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, Heartland Express' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Heartland Express' managers, analysts, and investors.
Environmental
Governance
Social
About Heartland Express Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Heartland Express's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Heartland Express using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Heartland Express 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.
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.
When determining whether Heartland Express is a strong investment it is important to analyze Heartland Express' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Heartland Express' future performance. For an informed investment choice regarding Heartland Stock, refer to the following important reports:
For information on how to trade Heartland Stock refer to our How to Trade Heartland Stock guide.You can also try the Stocks Directory module to find actively traded stocks across global markets.
Is Cargo Ground Transportation space 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 Heartland Express. If investors know Heartland 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 Heartland Express 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
(0.66)
Dividend Share
0.08
Earnings Share
(0.38)
Revenue Per Share
13.305
Quarterly Revenue Growth
(0.12)
The market value of Heartland Express is measured differently than its book value, which is the value of Heartland that is recorded on the company's balance sheet. Investors also form their own opinion of Heartland Express' value that differs from its market value or its book value, called intrinsic value, which is Heartland Express' 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 Heartland Express' market value can be influenced by many factors that don't directly affect Heartland Express' 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 Heartland Express' value and its price as these two are different measures arrived at by different means. Investors typically determine if Heartland Express is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Heartland Express' 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.