Rafael Holdings Class Stock Beneish M Score

RFL Stock  USD 1.88  0.02  1.08%   
This module uses fundamental data of Rafael Holdings to approximate the value of its Beneish M Score. Rafael Holdings 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 Rafael Holdings Piotroski F Score and Rafael Holdings Altman Z Score analysis.
  
At this time, Rafael Holdings' Short and Long Term Debt is quite stable compared to the past year. Short Term Debt is expected to rise to about 4 M this year, although the value of Net Debt will most likely fall to (302.4 K). At this time, Rafael Holdings' Intangibles To Total Assets are quite stable compared to the past year. Current Ratio is expected to rise to 19.24 this year, although the value of Days Sales Outstanding will most likely fall to 408.48.
At this time, it appears that Rafael Holdings Class is a possible manipulator. The earnings manipulation may begin if Rafael Holdings' 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 Rafael Holdings 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 Rafael Holdings' 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.
-0.8
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.34

Focus
Asset Quality

12.27

Focus
Expense Coverage

0.7

Focus
Gross Margin Strengs

1.19

Focus
Accruals Factor

0.7

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.95

Focus
Financial Leverage Condition

0.72

Focus

Rafael Holdings 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 Rafael Holdings' 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 Receivables1.2 M941 K
Significantly Up
Slightly volatile
Total Revenue605.1 K637 K
Notably Down
Slightly volatile
Total Assets123.9 M96.8 M
Significantly Up
Slightly volatile
Total Current Assets44.1 M72.5 M
Way Down
Slightly volatile
Non Current Assets Total23.1 M24.3 M
Notably Down
Pretty Stable
Property Plant Equipment1.4 M1.5 M
Notably Down
Slightly volatile
Depreciation And Amortization213.8 K225 K
Notably Down
Very volatile
Selling General Administrative5.9 M8.9 M
Way Down
Slightly volatile
Total Current Liabilities6.9 M7.5 M
Significantly Down
Slightly volatile
Non Current Liabilities Total5.2 M3.1 M
Way Up
Slightly volatile
Long Term Investments8.3 M8.8 M
Notably Down
Slightly volatile
Gross Profit Margin0.90.7582
Fairly Up
Slightly volatile

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

About Rafael Holdings 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

108.43 Million

At this time, Rafael Holdings' Other Operating Expenses is quite stable compared to the past year.

Rafael Holdings 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 Rafael Holdings. 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 Receivables385K835K297K2.5M941K1.2M
Total Revenue4.9M4.0M410K279K637K605.2K
Total Assets136.3M154.1M118.3M98.8M96.8M123.9M
Total Current Assets9.8M14.8M108.3M82.9M72.5M44.1M
Net Debt(6.2M)6.7M(11.5M)(21.5M)(288K)(302.4K)
Operating Income(8.5M)(29.8M)19.2M(15.0M)(102.6M)(97.5M)
Investments(1.0M)(8.2M)(36.8M)21.2M19.1M20.0M

About Rafael Holdings Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Rafael Holdings Class's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Rafael Holdings using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Rafael Holdings Class 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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When determining whether Rafael Holdings Class is a strong investment it is important to analyze Rafael Holdings' 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 Rafael Holdings' future performance. For an informed investment choice regarding Rafael Stock, refer to the following important reports:
Check out Rafael Holdings Piotroski F Score and Rafael Holdings Altman Z Score analysis.
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Is Real Estate Management & Development 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 Rafael Holdings. If investors know Rafael 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 Rafael Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.45)
Revenue Per Share
0.027
Quarterly Revenue Growth
1.426
Return On Assets
(0.66)
Return On Equity
(0.71)
The market value of Rafael Holdings Class is measured differently than its book value, which is the value of Rafael that is recorded on the company's balance sheet. Investors also form their own opinion of Rafael Holdings' value that differs from its market value or its book value, called intrinsic value, which is Rafael Holdings' 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 Rafael Holdings' market value can be influenced by many factors that don't directly affect Rafael Holdings' 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 Rafael Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Rafael Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rafael Holdings' 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.