Waldencast Acquisition Corp Stock Beneish M Score

WALD Stock  USD 3.38  0.09  2.74%   
This module uses fundamental data of Waldencast Acquisition to approximate the value of its Beneish M Score. Waldencast Acquisition 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 Waldencast Acquisition Piotroski F Score and Waldencast Acquisition Altman Z Score analysis.
  
At present, Waldencast Acquisition's Short and Long Term Debt is projected to decrease significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 10.5 M, whereas Long Term Debt is forecasted to decline to about 114.4 M. At present, Waldencast Acquisition's Book Value Per Share is projected to increase based on the last few years of reporting. The current year's PB Ratio is expected to grow to 1.86, whereas Operating Cash Flow Per Share is forecasted to decline to (0.31).
At this time, it appears that Waldencast Acquisition is an unlikely manipulator. The earnings manipulation may begin if Waldencast Acquisition'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 Waldencast Acquisition 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 Waldencast Acquisition'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.
-3.48
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.49

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.58

Focus
Gross Margin Strengs

0.94

Focus
Accruals Factor

1.58

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.67

Focus
Financial Leverage Condition

1.55

Focus

Waldencast Acquisition 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 Waldencast Acquisition'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 Receivables22.2 M22.4 M
Fairly Down
Slightly volatile
Total Revenue166.8 M250.9 M
Way Down
Slightly volatile
Total Assets637.3 MB
Way Down
Slightly volatile
Total Current Assets70.8 M107.3 M
Way Down
Slightly volatile
Non Current Assets Total566.5 M935.4 M
Way Down
Slightly volatile
Depreciation And Amortization73.1 M69.6 M
Sufficiently Up
Slightly volatile
Selling General Administrative266 M253.4 M
Sufficiently Up
Slightly volatile
Total Current Liabilities48.5 M62.7 M
Significantly Down
Slightly volatile
Net Debt158.3 M155.1 M
Fairly Up
Slightly volatile
Short Term Debt10.5 M9.8 M
Notably Up
Slightly volatile
Long Term Debt114.4 M151.3 M
Way Down
Slightly volatile
Gross Profit Margin0.610.649
Notably Down
Slightly volatile

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

About Waldencast Acquisition 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.

Depreciation And Amortization

73.05 Million

At present, Waldencast Acquisition's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

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

About Waldencast Acquisition Fundamental Analysis

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

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When determining whether Waldencast Acquisition is a strong investment it is important to analyze Waldencast Acquisition's 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 Waldencast Acquisition's future performance. For an informed investment choice regarding Waldencast Stock, refer to the following important reports:
Check out Waldencast Acquisition Piotroski F Score and Waldencast Acquisition Altman Z Score analysis.
You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Is Application Software 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 Waldencast Acquisition. If investors know Waldencast 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 Waldencast Acquisition listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.74)
Revenue Per Share
2.176
Quarterly Revenue Growth
0.203
Return On Assets
(0.04)
Return On Equity
(0.11)
The market value of Waldencast Acquisition is measured differently than its book value, which is the value of Waldencast that is recorded on the company's balance sheet. Investors also form their own opinion of Waldencast Acquisition's value that differs from its market value or its book value, called intrinsic value, which is Waldencast Acquisition'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 Waldencast Acquisition's market value can be influenced by many factors that don't directly affect Waldencast Acquisition'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 Waldencast Acquisition's value and its price as these two are different measures arrived at by different means. Investors typically determine if Waldencast Acquisition is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Waldencast Acquisition'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.