Dws Municipal Income Stock Beneish M Score

KTF Stock  USD 9.94  0.12  1.22%   
This module uses fundamental data of DWS Municipal to approximate the value of its Beneish M Score. DWS Municipal 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 DWS Municipal Piotroski F Score and DWS Municipal Altman Z Score analysis.
  
At this time, DWS Municipal's Net Debt To EBITDA is most likely to slightly grow in the upcoming years. The DWS Municipal's current Cash Flow To Debt Ratio is estimated to increase to 1.78, while Short and Long Term Debt is projected to decrease to roughly 284.5 M. At this time, DWS Municipal's PTB Ratio is most likely to slightly decrease in the upcoming years. The DWS Municipal's current Days Sales Outstanding is estimated to increase to 266.78, while Free Cash Flow Per Share is projected to decrease to 1.02.
At this time, it appears that DWS Municipal Income is an unlikely manipulator. The earnings manipulation may begin if DWS Municipal'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 DWS Municipal 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 DWS Municipal'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.
-3.35
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.74

Focus
Asset Quality

N/A

Focus
Expense Coverage

0.74

Focus
Gross Margin Strengs

0.96

Focus
Accruals Factor

0.74

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

1.28

Focus
Financial Leverage Condition

0.85

Focus

DWS Municipal 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 DWS Municipal'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 Receivables8.1 M8.6 M
Notably Down
Slightly volatile
Total Assets609.4 M544.2 M
Moderately Up
Slightly volatile
Total Current Assets9.4 M11 M
Fairly Down
Pretty Stable
Non Current Assets Total703.4 M684.4 M
Fairly Up
Slightly volatile
Selling General Administrative255.5 K268.9 K
Notably Down
Slightly volatile
Total Current Liabilities3.8 MM
Notably Down
Slightly volatile
Non Current Liabilities Total13.7 M14.4 M
Notably Down
Slightly volatile
Long Term Debt257.9 M288.9 M
Fairly Down
Slightly volatile
Total Cash From Operating Activities72.9 M69.5 M
Sufficiently Up
Slightly volatile
Long Term Investments600.3 M535.6 M
Moderately Up
Slightly volatile
Gross Profit Margin0.981.02
Sufficiently Down
Slightly volatile

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

About DWS Municipal 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.

Operating Income

16.88 Million

At this time, DWS Municipal's Operating Income is most likely to decrease significantly in the upcoming years.

DWS Municipal 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 DWS Municipal. 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 Receivables9.5M9.4M9.2M9.6M8.6M8.1M
Total Revenue22.9M22.2M(91.0M)15.8M14.2M18.2M
Total Assets752.8M753.8M646.8M604.7M544.2M609.4M
Total Current Assets9.5M9.4M9.2M9.6M11.0M9.4M
Non Current Assets Total743.3M744.5M637.6M595.1M684.4M703.4M
Depreciation And Amortization(24.8M)(22.0M)(21.9M)(23.7M)(21.4M)(22.4M)
Selling General Administrative500.0K276.6K298.0K298.8K268.9K255.5K
Total Current Liabilities149.4K612.1K1.6M4.4M4.0M3.8M
Net Debt60.1M52.7M52.7M16.0M14.4M13.7M
Short Term Debt0.060.2M52.7M16.0M14.4M13.7M
Long Term Debt258.9M258.9M251.1M251.2M288.9M257.9M
Operating Income23.2M21.9M(86.1M)15.5M13.9M16.9M
Total Cash From Operating Activities27.3M21.2M16.3M60.4M69.5M72.9M
Long Term Investments743.3M744.5M637.6M595.1M535.6M600.3M

About DWS Municipal Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze DWS Municipal Income's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of DWS Municipal using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of DWS Municipal Income 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 DWS Municipal Income is a strong investment it is important to analyze DWS Municipal's 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 DWS Municipal's future performance. For an informed investment choice regarding DWS Stock, refer to the following important reports:
Check out DWS Municipal Piotroski F Score and DWS Municipal Altman Z Score analysis.
You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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 DWS Municipal. If investors know DWS 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 DWS Municipal 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
(0.15)
Dividend Share
0.388
Earnings Share
0.35
Revenue Per Share
0.697
Quarterly Revenue Growth
(0)
The market value of DWS Municipal Income is measured differently than its book value, which is the value of DWS that is recorded on the company's balance sheet. Investors also form their own opinion of DWS Municipal's value that differs from its market value or its book value, called intrinsic value, which is DWS Municipal'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 DWS Municipal's market value can be influenced by many factors that don't directly affect DWS Municipal'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 DWS Municipal's value and its price as these two are different measures arrived at by different means. Investors typically determine if DWS Municipal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DWS Municipal'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.