Berry Petroleum Corp Stock Beneish M Score

BRY Stock  USD 4.10  0.03  0.73%   
This module uses fundamental data of Berry Petroleum to approximate the value of its Beneish M Score. Berry Petroleum 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 Berry Petroleum Piotroski F Score and Berry Petroleum Altman Z Score analysis.
  
At this time, Berry Petroleum's Debt Ratio is fairly stable compared to the past year. At this time, Berry Petroleum's Payout Ratio is fairly stable compared to the past year. ROE is likely to rise to 0.05 in 2024, whereas Price To Sales Ratio is likely to drop 0.50 in 2024.
At this time, it appears that Berry Petroleum Corp is a possible manipulator. The earnings manipulation may begin if Berry Petroleum'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 Berry Petroleum 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 Berry Petroleum'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.
-1.42
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.24

Focus
Asset Quality

2.94

Focus
Expense Coverage

1.08

Focus
Gross Margin Strengs

1.06

Focus
Accruals Factor

1.08

Focus
Depreciation Resistance

1.15

Focus
Net Sales Growth

0.73

Focus
Financial Leverage Condition

0.83

Focus

Berry Petroleum 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 Berry Petroleum'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 Receivables79.5 M86.9 M
Significantly Down
Slightly volatile
Total Revenue634.2 M863.5 M
Way Down
Very volatile
Total AssetsB1.6 B
Fairly Up
Slightly volatile
Total Current Assets166.3 M140.8 M
Fairly Up
Pretty Stable
Non Current Assets Total1.1 B1.5 B
Significantly Down
Slightly volatile
Property Plant Equipment1.7 B1.6 B
Significantly Up
Slightly volatile
Depreciation And Amortization152.7 M160.5 M
Notably Down
Slightly volatile
Selling General Administrative76.2 M95.9 M
Significantly Down
Very volatile
Total Current Liabilities266.5 M223.2 M
Fairly Up
Very volatile
Non Current Liabilities Total616.6 M613 M
Slightly Up
Slightly volatile
Net Debt398.7 M431.2 M
Significantly Down
Slightly volatile
Short Term Debt2.8 M2.9 M
Notably Down
Slightly volatile
Long Term Debt664.4 M428 M
Way Up
Slightly volatile
Total Cash From Operating Activities233.9 M198.7 M
Fairly Up
Pretty Stable
Short Term Investments42.1 M40.1 M
Sufficiently Up
Slightly volatile
Long Term Investments420 K472.5 K
Fairly Down
Slightly volatile

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

About Berry Petroleum 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

321.53 Million

At this time, Berry Petroleum's Operating Income is fairly stable compared to the past year.

Berry Petroleum 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 Berry Petroleum. 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 Receivables71.9M52.0M86.3M101.7M86.9M79.5M
Total Revenue597.4M406.1M701.3M1.1B863.5M634.2M
Total Assets1.7B1.4B1.5B1.6B1.6B2.0B
Total Current Assets100.4M154.5M147.5M218.1M140.8M166.3M
Net Debt394.3M312.9M379.3M351.2M431.2M398.7M
Long Term Debt394.3M393.5M394.6M395.7M428.0M664.4M
Operating Income31.7M(202.7M)(8.8M)130.1M306.2M321.5M
Investments(225.0M)(93.6M)(168.8M)(164.6M)(181.3M)(190.4M)
Gross Profit Margin0.430.160.380.410.270.29

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

About Berry Petroleum Fundamental Analysis

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

Additional Tools for Berry Stock Analysis

When running Berry Petroleum's price analysis, check to measure Berry Petroleum'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 Berry Petroleum is operating at the current time. Most of Berry Petroleum's value examination focuses on studying past and present price action to predict the probability of Berry Petroleum's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Berry Petroleum's price. Additionally, you may evaluate how the addition of Berry Petroleum to your portfolios can decrease your overall portfolio volatility.