Village Farms International Stock Beneish M Score

VFF Stock  USD 0.80  0.02  2.05%   
This module uses fundamental data of Village Farms to approximate the value of its Beneish M Score. Village Farms 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 Village Farms Piotroski F Score and Village Farms Altman Z Score analysis.
  
At this time, Village Farms' Net Debt is most likely to decrease significantly in the upcoming years. The Village Farms' current Short and Long Term Debt is estimated to increase to about 6.8 M, while Short and Long Term Debt Total is projected to decrease to roughly 62.5 M. At this time, Village Farms' POCF Ratio is most likely to increase in the upcoming years. The Village Farms' current Days Payables Outstanding is estimated to increase to 39.18, while Dividend Yield is projected to decrease to 0.04.
At this time, it appears that Village Farms Intern is an unlikely manipulator. The earnings manipulation may begin if Village Farms' 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 Village Farms 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 Village Farms' 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.
-2.85
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.91

Focus
Asset Quality

2.31

Focus
Expense Coverage

1.79

Focus
Gross Margin Strengs

0.75

Focus
Accruals Factor

1.79

Focus
Depreciation Resistance

1.1

Focus
Net Sales Growth

0.59

Focus
Financial Leverage Condition

1.04

Focus

Village Farms 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 Village Farms' 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 Receivables16.4 M30.9 M
Way Down
Slightly volatile
Total Revenue167.3 M285.6 M
Way Down
Slightly volatile
Total Assets490.3 M467 M
Sufficiently Up
Slightly volatile
Total Current Assets159.4 M151.8 M
Sufficiently Up
Slightly volatile
Non Current Assets Total331 M315.2 M
Sufficiently Up
Slightly volatile
Property Plant Equipment138.7 M238.9 M
Way Down
Slightly volatile
Depreciation And Amortization8.3 M15.9 M
Way Down
Slightly volatile
Selling General Administrative68.8 M65.5 M
Sufficiently Up
Slightly volatile
Total Current Liabilities75.8 M72.2 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total61.2 M75.9 M
Significantly Down
Slightly volatile
Net Debt36.4 M30.2 M
Fairly Up
Slightly volatile
Short Term Debt11 M17.4 M
Way Down
Slightly volatile
Long Term Debt33.6 M38.9 M
Fairly Down
Slightly volatile

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

About Village Farms 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

173.51 Million

At this time, Village Farms' Other Operating Expenses is most likely to increase significantly in the upcoming years.

Village Farms 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 Village Farms. 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 Receivables25.5M23.4M37.4M34.8M30.9M16.4M
Total Revenue144.6M170.1M268.0M293.6M285.6M167.3M
Total Assets183.4M354.0M566.9M465.3M467.0M490.3M
Total Current Assets54.6M101.8M175.0M133.0M151.8M159.4M
Net Debt26.1M63.8M23.9M54.1M30.2M36.4M
Short Term Debt6.4M28.6M21.1M21.1M17.4M11.0M
Long Term Debt29.0M53.9M50.4M43.8M38.9M33.6M
Operating Income(27.5M)(17.4M)(8.8M)(44.7M)(16.1M)(15.3M)
Investments(14.6M)(11.9M)(20K)(734K)(4.9M)(5.2M)
Gross Profit Margin0.0592(0.0508)0.06440.170.09370.13

About Village Farms Fundamental Analysis

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

Currently Active Assets on Macroaxis

When determining whether Village Farms Intern is a strong investment it is important to analyze Village Farms' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Village Farms' future performance. For an informed investment choice regarding Village Stock, refer to the following important reports:
Check out Village Farms Piotroski F Score and Village Farms Altman Z Score analysis.
You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Is Agricultural Products & 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 Village Farms. If investors know Village 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 Village Farms 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
(0.78)
Earnings Share
(0.45)
Revenue Per Share
2.958
Quarterly Revenue Growth
0.199
Return On Assets
(0.02)
The market value of Village Farms Intern is measured differently than its book value, which is the value of Village that is recorded on the company's balance sheet. Investors also form their own opinion of Village Farms' value that differs from its market value or its book value, called intrinsic value, which is Village Farms' 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 Village Farms' market value can be influenced by many factors that don't directly affect Village Farms' 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 Village Farms' value and its price as these two are different measures arrived at by different means. Investors typically determine if Village Farms is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Village Farms' 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.