Western Midstream Partners Stock Beneish M Score

WES Stock  USD 39.13  0.11  0.28%   
This module uses fundamental data of Western Midstream to approximate the value of its Beneish M Score. Western Midstream 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 Western Midstream Piotroski F Score and Western Midstream Altman Z Score analysis.
  
At this time, Western Midstream's Cash Flow To Debt Ratio is comparatively stable compared to the past year. At this time, Western Midstream's ROIC is comparatively stable compared to the past year. Net Income Per Share is likely to gain to 2.74 in 2024, whereas Book Value Per Share is likely to drop 7.51 in 2024.
At this time, it appears that Western Midstream is an unlikely manipulator. The earnings manipulation may begin if Western Midstream'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 Western Midstream 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 Western Midstream'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.
-4.1
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.9

Focus
Asset Quality

-3.59

Focus
Expense Coverage

1.9

Focus
Gross Margin Strengs

0.7

Focus
Accruals Factor

1.9

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.55

Focus
Financial Leverage Condition

1.9

Focus

Western Midstream 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 Western Midstream'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 Receivables715.4 M681.3 M
Sufficiently Up
Slightly volatile
Total Revenue1.7 B3.1 B
Way Down
Slightly volatile
Total Assets6.9 B12.5 B
Way Down
Slightly volatile
Total Current AssetsB992.4 M
Sufficiently Up
Slightly volatile
Non Current Assets Total7.2 B11.5 B
Way Down
Slightly volatile
Property Plant Equipment10.3 B9.8 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization630.7 M600.7 M
Sufficiently Up
Slightly volatile
Selling General Administrative244.3 M232.6 M
Sufficiently Up
Slightly volatile
Total Current Liabilities1.4 B1.3 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total4.2 B8.1 B
Way Down
Slightly volatile
Short Term Debt886.7 M629 M
Significantly Up
Very volatile
Long Term Debt3.9 B7.3 B
Way Down
Slightly volatile
Operating Income1.4 B1.4 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities833.3 M1.7 B
Way Down
Slightly volatile
Long Term Investments1.1 B904.5 M
Fairly Up
Slightly volatile
Gross Profit Margin0.490.7015
Way Down
Slightly volatile

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

About Western Midstream 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

1.45 Billion

At this time, Western Midstream's Operating Income is comparatively stable compared to the past year.

Western Midstream 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 Western Midstream. 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 Receivables272.3M471.2M467.1M590.3M681.3M715.4M
Total Revenue2.7B2.8B2.9B3.3B3.1B1.7B
Total Assets12.3B11.8B11.3B11.3B12.5B6.9B
Total Current Assets402.4M943.1M684.8M900.4M992.4M1.0B
Net Debt7.9B7.0B6.2B6.5B7.7B8.1B
Short Term Debt7.9M438.9M505.9M226.1M629.0M886.7M
Long Term Debt8.0B7.4B6.4B6.6B7.3B3.9B
Operating Income1.2B1.5B1.3B1.6B1.4B1.4B
Investments30.3M32.2M(257.5M)63.9M(400.6M)(380.5M)
Gross Profit Margin0.610.660.760.70.690.49

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

About Western Midstream Fundamental Analysis

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

When running Western Midstream's price analysis, check to measure Western Midstream's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Western Midstream is operating at the current time. Most of Western Midstream's value examination focuses on studying past and present price action to predict the probability of Western Midstream's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Western Midstream's price. Additionally, you may evaluate how the addition of Western Midstream to your portfolios can decrease your overall portfolio volatility.