Park Hotels Resorts Stock Beneish M Score

PK Stock  USD 15.56  0.20  1.30%   
This module uses fundamental data of Park Hotels to approximate the value of its Beneish M Score. Park Hotels 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 Park Hotels Piotroski F Score and Park Hotels Altman Z Score analysis.
  
At this time, Park Hotels' Net Debt is quite stable compared to the past year. Short Term Debt is expected to rise to about 808.2 M this year, although the value of Short and Long Term Debt will most likely fall to about 42.8 M. At this time, Park Hotels' Days Of Inventory On Hand is quite stable compared to the past year. Payables Turnover is expected to rise to 10.52 this year, although the value of Days Sales Outstanding will most likely fall to 14.32.
At this time, it appears that Park Hotels Resorts is an unlikely manipulator. The earnings manipulation may begin if Park Hotels' 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 Park Hotels 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 Park Hotels' 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.
-3.15
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.19

Focus
Asset Quality

-0.29

Focus
Expense Coverage

1.27

Focus
Gross Margin Strengs

0.94

Focus
Accruals Factor

1.27

Focus
Depreciation Resistance

1.01

Focus
Net Sales Growth

0.7

Focus
Financial Leverage Condition

0.81

Focus

Park Hotels 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 Park Hotels' 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 Receivables93.8 M112 M
Fairly Down
Very volatile
Total Revenue1.9 B2.7 B
Way Down
Pretty Stable
Total Assets10.9 B9.4 B
Fairly Up
Slightly volatile
Total Current AssetsB1.7 B
Way Down
Slightly volatile
Non Current Assets Total7.2 B7.7 B
Significantly Down
Pretty Stable
Property Plant Equipment9.4 B9.8 B
Sufficiently Down
Slightly volatile
Depreciation And Amortization272.6 M287 M
Notably Down
Slightly volatile
Selling General Administrative58.1 M65 M
Moderately Down
Slightly volatile
Total Current Liabilities446.7 M738 M
Way Down
Slightly volatile
Non Current Liabilities TotalB4.9 B
Significantly Down
Slightly volatile
Net DebtBB
Slightly Up
Very volatile
Short Term Debt808.2 M652.5 M
Fairly Up
Slightly volatile
Long Term Debt4.4 B4.5 B
Fairly Down
Pretty Stable
Short Term Investments855 K900 K
Notably Down
Slightly volatile
Long Term Investments855 K900 K
Notably Down
Slightly volatile

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

About Park Hotels 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

368.29 Million

At this time, Park Hotels' Current Deferred Revenue is quite stable compared to the past year.

Park Hotels 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 Park Hotels. 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 Receivables180M26M96M129M112M93.8M
Total Revenue2.8B852M1.4B2.5B2.7B1.9B
Total Assets11.3B10.6B9.7B9.7B9.4B10.9B
Total Current Assets720M1.0B894M1.1B1.7B1.0B
Net Debt3.8B4.4B4.2B3.9B4.0B4.0B
Short Term Debt670M601M78M725M652.5M808.2M
Long Term Debt3.9B5.1B4.7B4.6B4.5B4.4B
Operating Income426M(1.2B)(178M)413M343M178.3M
Investments51M1M(10M)101M(144M)(136.8M)

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

About Park Hotels Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Park Hotels Resorts's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Park Hotels using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Park Hotels Resorts 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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Check out Park Hotels Piotroski F Score and Park Hotels Altman Z Score analysis.
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Is Hotel & Resort REITs 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 Park Hotels. If investors know Park 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 Park Hotels 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
1.02
Dividend Share
1.68
Earnings Share
1.55
Revenue Per Share
12.798
Quarterly Revenue Growth
(0.01)
The market value of Park Hotels Resorts is measured differently than its book value, which is the value of Park that is recorded on the company's balance sheet. Investors also form their own opinion of Park Hotels' value that differs from its market value or its book value, called intrinsic value, which is Park Hotels' 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 Park Hotels' market value can be influenced by many factors that don't directly affect Park Hotels' 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 Park Hotels' value and its price as these two are different measures arrived at by different means. Investors typically determine if Park Hotels is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Park Hotels' 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.