Strong Global Entertainment, Stock Beneish M Score

SGE Stock   1.39  0.04  2.80%   
This module uses fundamental data of Strong Global to approximate the value of its Beneish M Score. Strong Global 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 Strong Global Piotroski F Score and Strong Global Altman Z Score analysis.
  
At present, Strong Global's Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Net Debt To EBITDA is expected to grow to 6.26, whereas Long Term Debt is forecasted to decline to about 84.7 K. At present, Strong Global's PTB Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 209.62, whereas Free Cash Flow Per Share is forecasted to decline to 0.42.
At this time, it appears that Strong Global Entert is an unlikely manipulator. The earnings manipulation may begin if Strong Global'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 Strong Global 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 Strong Global'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.
-2.31
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.41

Focus
Asset Quality

1.22

Focus
Expense Coverage

0.41

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

0.41

Focus
Depreciation Resistance

0.91

Focus
Net Sales Growth

1.84

Focus
Financial Leverage Condition

0.93

Focus

Strong Global 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 Strong Global'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 Receivables4.9 M6.5 M
Way Down
Slightly volatile
Total Revenue21.7 M11.8 M
Way Up
Slightly volatile
Total Assets26.9 M26.5 M
Fairly Up
Slightly volatile
Total Current Assets17.8 M18 M
Fairly Down
Slightly volatile
Non Current Assets Total8.5 M8.5 M
Slightly Up
Slightly volatile
Property Plant Equipment4.5 M4.9 M
Significantly Down
Slightly volatile
Depreciation And Amortization842.7 K832 K
Fairly Up
Slightly volatile
Selling General Administrative5.9 M7.8 M
Way Down
Slightly volatile
Total Current Liabilities11.7 M12.9 M
Moderately Down
Slightly volatile
Non Current Liabilities Total3.7 M5.9 M
Way Down
Slightly volatile
Short Term Debt2.1 M3.4 M
Way Down
Slightly volatile
Total Cash From Operating Activities2.7 M3.5 M
Way Down
Slightly volatile
Gross Profit Margin0.940.8933
Sufficiently Up
Slightly volatile

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

About Strong Global 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

20.55 Million

At present, Strong Global's Other Operating Expenses is projected to decrease significantly based on the last few years of reporting.

About Strong Global Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Strong Global Entertainment,'s financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Strong Global using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Strong Global Entertainment, 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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Additional Information and Resources on Investing in Strong Stock

When determining whether Strong Global Entert is a strong investment it is important to analyze Strong Global'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 Strong Global's future performance. For an informed investment choice regarding Strong Stock, refer to the following important reports:
Is Technology Hardware, Storage & Peripherals 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 Strong Global. If investors know Strong 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 Strong Global 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
(0.96)
Earnings Share
0.52
Revenue Per Share
5.83
Quarterly Revenue Growth
0.187
Return On Assets
0.0155
The market value of Strong Global Entert is measured differently than its book value, which is the value of Strong that is recorded on the company's balance sheet. Investors also form their own opinion of Strong Global's value that differs from its market value or its book value, called intrinsic value, which is Strong Global'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 Strong Global's market value can be influenced by many factors that don't directly affect Strong Global'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 Strong Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Strong Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Strong Global'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.