Kineta Inc Stock Beneish M Score

KA Stock   0.48  0.04  7.69%   
This module uses fundamental data of Kineta to approximate the value of its Beneish M Score. Kineta 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 Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
  
At present, Kineta's Net Debt To EBITDA is projected to slightly decrease based on the last few years of reporting. The current year's Debt To Equity is expected to grow to 0.48, whereas Short and Long Term Debt Total is forecasted to decline to about 1.3 M. At present, Kineta's PTB Ratio is projected to decrease significantly based on the last few years of reporting. The current year's Stock Based Compensation To Revenue is expected to grow to 0.73, whereas Price To Sales Ratio is forecasted to decline to 7.00.
At this time, it appears that Kineta Inc is an unlikely manipulator. The earnings manipulation may begin if Kineta'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 Kineta 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 Kineta'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.
-3.83
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

N/A

Focus
Asset Quality

0.44

Focus
Expense Coverage

0.72

Focus
Gross Margin Strengs

0.68

Focus
Accruals Factor

0.72

Focus
Depreciation Resistance

1.08

Focus
Net Sales Growth

0.94

Focus
Financial Leverage Condition

1.88

Focus

Kineta 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 Kineta'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
Total Revenue5.1 M5.4 M
Notably Down
Pretty Stable
Total Assets9.8 M10.3 M
Notably Down
Slightly volatile
Total Current Assets5.7 MM
Notably Down
Slightly volatile
Non Current Assets Total4.3 M4.3 M
Slightly Up
Slightly volatile
Property Plant Equipment1.9 M1.9 M
Fairly Up
Slightly volatile
Depreciation And Amortization8.6 KK
Notably Down
Slightly volatile
Selling General Administrative8.2 M12.1 M
Way Down
Slightly volatile
Total Current Liabilities8.8 M7.1 M
Fairly Up
Very volatile
Non Current Liabilities Total142.5 K150 K
Notably Down
Slightly volatile
Short Term Debt1.6 M1.7 M
Notably Down
Slightly volatile
Long Term Debt142.5 K150 K
Notably Down
Slightly volatile
Short Term Investments3.8 MM
Notably Down
Slightly volatile
Gross Profit Margin0.680.9983
Way Down
Slightly volatile

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

About Kineta 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.

Current Deferred Revenue

377,910

At present, Kineta's Current Deferred Revenue is projected to decrease significantly based on the last few years of reporting.

About Kineta Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Kineta Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Kineta using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Kineta Inc 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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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.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Is Biotechnology 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 Kineta. If investors know Kineta 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 Kineta listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.64)
Quarterly Revenue Growth
(1.00)
Return On Assets
(1.14)
Return On Equity
(3.69)
The market value of Kineta Inc is measured differently than its book value, which is the value of Kineta that is recorded on the company's balance sheet. Investors also form their own opinion of Kineta's value that differs from its market value or its book value, called intrinsic value, which is Kineta'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 Kineta's market value can be influenced by many factors that don't directly affect Kineta'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 Kineta's value and its price as these two are different measures arrived at by different means. Investors typically determine if Kineta is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kineta'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.