Brookdale Senior Living Stock Beneish M Score

BKD Stock  USD 5.68  0.09  1.61%   
This module uses fundamental data of Brookdale Senior to approximate the value of its Beneish M Score. Brookdale Senior 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 Brookdale Senior Piotroski F Score and Brookdale Senior Altman Z Score analysis.
  
At present, Brookdale Senior's Debt To Equity is projected to increase based on the last few years of reporting. The current year's Debt Equity Ratio is expected to grow to 10.12, whereas Short and Long Term Debt Total is forecasted to decline to about 3.9 B. At present, Brookdale Senior's EV To Sales is projected to slightly decrease based on the last few years of reporting. The current year's ROIC is expected to grow to 0.01, whereas Dividend Yield is forecasted to decline to 0.21.
At this time, it appears that Brookdale Senior Living is a possible manipulator. The earnings manipulation may begin if Brookdale Senior'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 Brookdale Senior 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 Brookdale Senior'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.
-1.99
Beneish M Score - Possible Manipulator
Elasticity of Receivables

2.12

Focus
Asset Quality

-0.22

Focus
Expense Coverage

1.02

Focus
Gross Margin Strengs

1.3

Focus
Accruals Factor

1.02

Focus
Depreciation Resistance

0.51

Focus
Net Sales Growth

0.93

Focus
Financial Leverage Condition

0.79

Focus

Brookdale Senior 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 Brookdale Senior'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 Receivables95.1 M48.4 M
Way Up
Pretty Stable
Total Revenue2.8 BB
Significantly Down
Pretty Stable
Total Assets5.7 B5.6 B
Fairly Up
Pretty Stable
Total Current Assets449.1 M478.4 M
Notably Down
Slightly volatile
Non Current Assets Total5.6 B5.1 B
Significantly Up
Pretty Stable
Property Plant Equipment5.2 B5.9 B
Fairly Down
Slightly volatile
Depreciation And Amortization627 M342.7 M
Way Up
Slightly volatile
Selling General Administrative166.3 M175 M
Notably Down
Pretty Stable
Total Current Liabilities738.6 M600.1 M
Fairly Up
Very volatile
Non Current Liabilities Total4.2 B4.6 B
Significantly Down
Slightly volatile
Short Term Debt275.4 M428.9 M
Way Down
Slightly volatile
Long Term Debt2.9 B3.7 B
Significantly Down
Slightly volatile
Short Term Investments28.3 M29.8 M
Notably Down
Pretty Stable
Long Term Investments1.8 M1.9 M
Notably Down
Pretty Stable
Gross Profit Margin0.320.2453
Significantly Up
Slightly volatile

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

About Brookdale Senior 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

2.78 Billion

At present, Brookdale Senior's Other Operating Expenses is projected to increase significantly based on the last few years of reporting.

Brookdale Senior 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 Brookdale Senior. 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 Receivables133.6M109.2M51.1M55.8M48.4M95.1M
Total Revenue4.1B3.4B2.7B2.7B3.0B2.8B
Total Assets7.2B6.9B6.4B5.9B5.6B5.7B
Total Current Assets596.2M773.6M699.0M637.1M478.4M449.1M
Net Debt5.0B4.8B4.9B4.5B4.4B3.3B
Short Term Debt596.1M400.4M404.7M467.7M428.9M275.4M
Long Term Debt3.2B3.8B3.8B3.8B3.7B2.9B
Operating Income28.2M9.2M(185.7M)(85.1M)18.4M19.3M
Investments(12.8M)(101.9M)22.4M135.8M(145.7M)(138.4M)
Gross Profit Margin0.220.20.180.190.250.32

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

About Brookdale Senior Fundamental Analysis

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

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether Brookdale Senior Living is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Brookdale Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Brookdale Senior Living Stock. Highlighted below are key reports to facilitate an investment decision about Brookdale Senior Living Stock:
Check out Brookdale Senior Piotroski F Score and Brookdale Senior Altman Z Score analysis.
You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Is Health Care Providers & Services 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 Brookdale Senior. If investors know Brookdale 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 Brookdale Senior listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.93)
Revenue Per Share
13.041
Quarterly Revenue Growth
0.037
Return On Assets
0.0072
Return On Equity
(0.53)
The market value of Brookdale Senior Living is measured differently than its book value, which is the value of Brookdale that is recorded on the company's balance sheet. Investors also form their own opinion of Brookdale Senior's value that differs from its market value or its book value, called intrinsic value, which is Brookdale Senior'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 Brookdale Senior's market value can be influenced by many factors that don't directly affect Brookdale Senior'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 Brookdale Senior's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brookdale Senior is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brookdale Senior'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.