Zuora Inc Stock Beneish M Score

ZUO Stock  USD 9.92  0.02  0.20%   
This module uses fundamental data of Zuora to approximate the value of its Beneish M Score. Zuora 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 Zuora Piotroski F Score and Zuora Altman Z Score analysis.
  
At this time, Zuora's Interest Debt Per Share is very stable compared to the past year. As of the 28th of November 2024, Debt To Assets is likely to grow to 0.47, while Short Term Debt is likely to drop about 12.6 M. At this time, Zuora's Capex To Revenue is very stable compared to the past year. As of the 28th of November 2024, Cash Per Share is likely to grow to 3.85, while Price To Sales Ratio is likely to drop 2.82.
At this time, it appears that Zuora Inc is an unlikely manipulator. The earnings manipulation may begin if Zuora'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 Zuora 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 Zuora'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.
-5.28
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.89

Focus
Asset Quality

-2.82

Focus
Expense Coverage

1.02

Focus
Gross Margin Strengs

0.7

Focus
Accruals Factor

1.02

Focus
Depreciation Resistance

0.88

Focus
Net Sales Growth

0.67

Focus
Financial Leverage Condition

1.51

Focus

Zuora 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 Zuora'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 Receivables75.1 M126 M
Way Down
Slightly volatile
Total Revenue289 M431.7 M
Way Down
Slightly volatile
Total Assets424.9 M823.8 M
Way Down
Slightly volatile
Total Current Assets711.8 M677.9 M
Sufficiently Up
Slightly volatile
Non Current Assets Total108.9 M145.9 M
Way Down
Slightly volatile
Property Plant Equipment44.7 M57.4 M
Significantly Down
Slightly volatile
Depreciation And Amortization16.9 M18.2 M
Significantly Down
Slightly volatile
Selling General Administrative51 M74.6 M
Way Down
Slightly volatile
Total Current Liabilities177.4 M279.4 M
Way Down
Slightly volatile
Non Current Liabilities Total431.3 M410.7 M
Sufficiently Up
Slightly volatile
Short Term Debt12.6 M13.5 M
Significantly Down
Slightly volatile
Short Term Investments271 M258.1 M
Sufficiently Up
Slightly volatile
Gross Profit Margin0.460.6595
Way Down
Slightly volatile

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

About Zuora 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

367.29 Million

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

Zuora 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 Zuora. 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 Receivables68.9M80.2M84.8M98.9M126.0M75.1M
Total Revenue276.1M305.4M346.7M396.1M431.7M289.0M
Total Assets402.2M421.5M441.3M668.6M823.8M424.9M
Total Current Assets266.8M293.7M328.3M518.6M677.9M711.8M
Net Debt24.3M(24.8M)(54.8M)54.3M147.3M154.7M
Short Term Debt10.2M23.7M24.6M18.5M13.5M12.6M
Long Term Debt6.1M1.7M0.0210.4M359.5M377.5M
Operating Income(85.7M)(73.9M)(96.2M)(111.5M)(64.4M)(67.6M)
Investments(8.3M)12.9M(10.3M)(79.4M)(84.3M)(80.1M)

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

About Zuora Fundamental Analysis

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

Pair Trading with Zuora

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Zuora position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zuora will appreciate offsetting losses from the drop in the long position's value.

Moving together with Zuora Stock

  0.86S SentinelOnePairCorr

Moving against Zuora Stock

  0.61VRAR Glimpse GroupPairCorr
  0.52VRNT Verint Systems Earnings Call This WeekPairCorr
  0.33MQ MarqetaPairCorr
The ability to find closely correlated positions to Zuora could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Zuora when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Zuora - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Zuora Inc to buy it.
The correlation of Zuora is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Zuora moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Zuora Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Zuora can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Zuora Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Zuora's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Zuora Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Zuora Inc Stock:
Check out Zuora Piotroski F Score and Zuora Altman Z Score analysis.
You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Systems Software 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 Zuora. If investors know Zuora 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 Zuora listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.33)
Revenue Per Share
3.064
Quarterly Revenue Growth
0.068
Return On Assets
(0.02)
Return On Equity
(0.31)
The market value of Zuora Inc is measured differently than its book value, which is the value of Zuora that is recorded on the company's balance sheet. Investors also form their own opinion of Zuora's value that differs from its market value or its book value, called intrinsic value, which is Zuora's 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 Zuora's market value can be influenced by many factors that don't directly affect Zuora's 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 Zuora's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zuora is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zuora's 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.