Dun Bradstreet Holdings Stock Beneish M Score

DNB Stock  USD 12.37  0.09  0.72%   
This module uses fundamental data of Dun Bradstreet to approximate the value of its Beneish M Score. Dun Bradstreet 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 Dun Bradstreet Piotroski F Score and Dun Bradstreet Altman Z Score analysis.
  
At present, Dun Bradstreet's Long Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 55.1 M, whereas Long Term Debt Total is forecasted to decline to about 2.3 B. At present, Dun Bradstreet's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's PTB Ratio is expected to grow to 1.54, whereas Dividend Yield is forecasted to decline to 0.02.
At this time, it appears that Dun Bradstreet Holdings is a possible manipulator. The earnings manipulation may begin if Dun Bradstreet'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 Dun Bradstreet 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 Dun Bradstreet'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.
-1.69
Beneish M Score - Possible Manipulator
Elasticity of Receivables

1.76

Focus
Asset Quality

1.01

Focus
Expense Coverage

1.17

Focus
Gross Margin Strengs

1.6

Focus
Accruals Factor

1.17

Focus
Depreciation Resistance

0.98

Focus
Net Sales Growth

0.79

Focus
Financial Leverage Condition

0.93

Focus

Dun Bradstreet 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 Dun Bradstreet'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 Receivables357.4 M258 M
Significantly Up
Slightly volatile
Total Revenue1.8 B2.3 B
Significantly Down
Slightly volatile
Total Assets9.6 B9.1 B
Sufficiently Up
Slightly volatile
Total Current Assets610.3 M656.3 M
Significantly Down
Pretty Stable
Non Current Assets Total4.3 B8.5 B
Way Down
Slightly volatile
Property Plant Equipment56.4 M87.2 M
Way Down
Very volatile
Depreciation And Amortization468.1 M586.8 M
Significantly Down
Slightly volatile
Selling General Administrative693.7 M748.9 M
Significantly Down
Slightly volatile
Total Current LiabilitiesBB
Sufficiently Down
Slightly volatile
Non Current Liabilities Total3.4 B4.7 B
Way Down
Slightly volatile
Net Debt3.3 B3.4 B
Fairly Down
Slightly volatile
Short Term Debt55.1 M47.7 M
Fairly Up
Pretty Stable
Long Term Debt3.7 B3.5 B
Sufficiently Up
Slightly volatile
Long Term Investments22.5 M20.6 M
Significantly Up
Slightly volatile
Gross Profit Margin0.620.3873
Way Up
Slightly volatile

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

About Dun Bradstreet 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

257.92 Million

At present, Dun Bradstreet's Operating Income is projected to decrease significantly based on the last few years of reporting.

Dun Bradstreet 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 Dun Bradstreet. 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 Receivables279.3M319.3M401.7M271.6M258M357.4M
Total Revenue1.4B1.7B2.2B2.2B2.3B1.8B
Total Assets9.1B9.2B10.0B9.5B9.1B9.6B
Total Current Assets417.9M874M718M703.9M656.3M610.3M
Net Debt3.9B2.9B3.6B3.4B3.4B3.3B
Short Term Debt104.3M48.7M54.1M50.4M47.7M55.1M
Long Term Debt3.8B3.3B3.7B3.6B3.5B3.7B
Operating Income(148.2M)86.6M145.6M149.9M140.3M257.9M
Investments(6.2B)(134.3M)(1.1B)(210.5M)(164.9M)(173.1M)

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

About Dun Bradstreet Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Dun Bradstreet Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Dun Bradstreet using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Dun Bradstreet Holdings 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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When determining whether Dun Bradstreet Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Dun Bradstreet's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Dun Bradstreet Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Dun Bradstreet Holdings Stock:
Is Research & Consulting 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 Dun Bradstreet. If investors know Dun 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 Dun Bradstreet 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
(0.26)
Dividend Share
0.2
Earnings Share
(0.08)
Revenue Per Share
5.51
Quarterly Revenue Growth
0.035
The market value of Dun Bradstreet Holdings is measured differently than its book value, which is the value of Dun that is recorded on the company's balance sheet. Investors also form their own opinion of Dun Bradstreet's value that differs from its market value or its book value, called intrinsic value, which is Dun Bradstreet'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 Dun Bradstreet's market value can be influenced by many factors that don't directly affect Dun Bradstreet'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 Dun Bradstreet's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dun Bradstreet is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dun Bradstreet'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.