Tekla Healthcare Investors Stock Beneish M Score

HQH Stock  USD 17.25  0.07  0.41%   
This module uses fundamental data of Tekla Healthcare to approximate the value of its Beneish M Score. Tekla Healthcare 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 Tekla Healthcare Piotroski F Score and Tekla Healthcare Altman Z Score analysis.
  
The Tekla Healthcare's current Short Term Debt is estimated to increase to about 10.3 M, while Net Debt is forecasted to increase to (233.79). As of now, Tekla Healthcare's Net Income Per Share is decreasing as compared to previous years. The Tekla Healthcare's current Cash Per Share is estimated to increase to 0.63, while Price To Sales Ratio is projected to decrease to 14.45.
At this time, it appears that Tekla Healthcare Inv is a possible manipulator. The earnings manipulation may begin if Tekla Healthcare'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 Tekla Healthcare 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 Tekla Healthcare'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.
-1.95
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.68

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

1.68

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.51

Focus

Tekla Healthcare 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 Tekla Healthcare'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 Receivables8.3 M7.9 M
Sufficiently Up
Slightly volatile
Total Assets673 M1.1 B
Way Down
Slightly volatile
Total Current Assets47.9 M45.6 M
Sufficiently Up
Slightly volatile
Non Current Assets Total686 M1.1 B
Way Down
Slightly volatile
Depreciation And AmortizationM1.1 M
Notably Down
Slightly volatile
Selling General Administrative2.5 M1.4 M
Way Up
Slightly volatile
Total Current Liabilities1.3 M1.3 M
Notably Down
Very volatile
Non Current Liabilities Total982.1 KM
Notably Down
Slightly volatile
Investments25 M27.3 M
Significantly Down
Slightly volatile
Short Term Investments26.2 M37.6 M
Way Down
Slightly volatile
Long Term Investments954.8 M1.1 B
Moderately Down
Slightly volatile
Gross Profit Margin0.190.2
Notably Down
Slightly volatile

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

About Tekla Healthcare 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

1.95 Million

As of now, Tekla Healthcare's Other Operating Expenses is decreasing as compared to previous years.

Tekla Healthcare 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 Tekla Healthcare. 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 Receivables4.1M4.0M2.9M6.9M7.9M8.3M
Total Revenue242.9M157.1M(192.3M)58.1M66.8M70.2M
Total Assets1.1B1.2B926.3M932.5M1.1B673.0M
Total Current Assets4.1M4.0M2.9M39.6M45.6M47.9M
Net Debt2.5M11.3M8.5M(214.0)(246.1)(233.79)
Operating Income241.2M155.2M(194.2M)56.3M64.8M68.0M

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

About Tekla Healthcare Fundamental Analysis

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

Currently Active Assets on Macroaxis

When determining whether Tekla Healthcare Inv offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Tekla Healthcare'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 Tekla Healthcare Investors Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Tekla Healthcare Investors Stock:
Check out Tekla Healthcare Piotroski F Score and Tekla Healthcare Altman Z Score analysis.
You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Asset Management & Custody Banks 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 Tekla Healthcare. If investors know Tekla 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 Tekla Healthcare 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
0.145
Dividend Share
1.66
Earnings Share
1.31
Revenue Per Share
0.197
Quarterly Revenue Growth
(0.06)
The market value of Tekla Healthcare Inv is measured differently than its book value, which is the value of Tekla that is recorded on the company's balance sheet. Investors also form their own opinion of Tekla Healthcare's value that differs from its market value or its book value, called intrinsic value, which is Tekla Healthcare'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 Tekla Healthcare's market value can be influenced by many factors that don't directly affect Tekla Healthcare'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 Tekla Healthcare's value and its price as these two are different measures arrived at by different means. Investors typically determine if Tekla Healthcare is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tekla Healthcare'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.