Albireo Beneish M Score

ALBO Stock  USD 44.59  0.36  0.80%   
This module uses fundamental data of Albireo Pharma to approximate the value of its Beneish M Score. Albireo Pharma 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. Please continue to Albireo Pharma Piotroski F Score and Albireo Pharma Altman Z Score analysis.
  
Albireo Pharma Issuance Repayment of Debt Securities is very stable at the moment as compared to the past year. Albireo Pharma reported last year Issuance Repayment of Debt Securities of 10.91 Million. As of 7th of February 2023, Debt to Equity Ratio is likely to grow to 0.07, while Total Debt is likely to drop about 10.4 M. Albireo Pharma Price to Sales Ratio is very stable at the moment as compared to the past year. Albireo Pharma reported last year Price to Sales Ratio of 9.93. As of 7th of February 2023, Sales per Share is likely to grow to 2.59, while PPandE Turnover is likely to drop 67.56.
At this time, it appears that Albireo Pharma is an unlikely manipulator. The earnings manipulation may begin if Albireo Pharma'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 Albireo Pharma 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 Albireo Pharma'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.
-3.12
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset QualityN/AFocus
Expense Coverage1.0Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.0Focus
Depreciation Resistance0.95Focus
Net Sales Growth1.08Focus
Financial Leverage Condition0.99Focus

Albireo Pharma 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 Albireo Pharma'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
Selling General and Administrative Expense86.3 M80 M
Significantly Up
Up
Slightly volatile
Revenues39.4 M36.5 M
Significantly Up
Up
Slightly volatile
Trade and Non Trade Receivables4.1 M3.8 M
Significantly Up
Up
Slightly volatile
Property Plant and Equipment Net602.7 K601.2 K
Slightly Up
Down
Slightly volatile
Liabilities Non Current100.6 M93.3 M
Significantly Up
Up
Slightly volatile
Current Liabilities44 M40.8 M
Significantly Up
Up
Slightly volatile
Total Liabilities122.8 M113.8 M
Significantly Up
Up
Slightly volatile
Gross Margin86.4886.99
Slightly Down
Down
Slightly volatile
Depreciation Amortization and Accretion267.9 K246.6 K
Significantly Up
Down
Slightly volatile
Debt Non Current10.8 M11.5 M
Notably Down
Up
Slightly volatile
Debt Current3.5 M3.5 M
Fairly Down
Up
Slightly volatile
Total Debt10.4 M11.5 M
Moderately Down
Up
Slightly volatile
Assets Non Current41.1 M38.1 M
Significantly Up
Up
Slightly volatile
Current Assets261.1 M242 M
Significantly Up
Up
Slightly volatile
Total Assets293.3 M271.8 M
Significantly Up
Up
Slightly volatile

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

About Albireo Pharma 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 Amortization and Accretion

267,933

Albireo Pharma Depreciation Amortization and Accretion is very stable at the moment as compared to the past year. Albireo Pharma reported last year Depreciation Amortization and Accretion of 246,600

Albireo Pharma 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 Albireo Pharma. 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.
201820192020202120222023 (projected)
Revenues12.74 M9.64 M8.31 M40.58 M36.52 M39.4 M
Total Assets185.47 M165.07 M285.61 M302.05 M271.85 M293.31 M
Current Assets167.65 M141.8 M261.87 M268.93 M242.04 M261.15 M
Assets Non Current17.82 M23.27 M23.74 M33.12 M38.09 M41.1 M
Property Plant and Equipment Net187 K597 K478 K668 K601.2 K602.74 K
Depreciation Amortization and Accretion45 K127 K192 K274 K246.6 K267.93 K
Selling General and Administrative Expense18.06 M22.96 M42.45 M69.57 M80 M86.32 M
Total Liabilities62.83 M71.91 M104.38 M126.44 M113.8 M122.78 M
Current Liabilities12.82 M18.92 M25.28 M45.35 M40.81 M44.03 M
Liabilities Non Current50 M52.98 M79.09 M81.1 M93.26 M100.62 M
Operating Income(37.89 M)(61.11 M)(96.27 M)(123.48 M)(142.01 M)(145.74 M)
Net Cash Flow from Operations(26.8 M)(52.92 M)(101.03 M)(107.56 M)(123.69 M)(126.95 M)

About Albireo Pharma Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Albireo Pharma's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Albireo Pharma using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Albireo Pharma 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.
Albireo Pharma, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of novel bile acid modulators to treat orphan pediatric liver diseases and other liver or gastrointestinal diseases and disorders. Albireo Pharma, Inc. is headquartered in Boston, Massachusetts. Albireo Pharma operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 130 people.

Albireo Pharma Investors Sentiment

The influence of Albireo Pharma's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Albireo. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Albireo Pharma's public news can be used to forecast risks associated with investment in Albireo. The trend in average sentiment can be used to explain how an investor holding Albireo can time the market purely based on public headlines and social activities around Albireo Pharma. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Albireo Pharma's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Albireo Pharma's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Albireo Pharma's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Albireo Pharma.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Albireo Pharma in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Albireo Pharma's short interest history, or implied volatility extrapolated from Albireo Pharma options trading.

Pair Trading with Albireo Pharma

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Albireo Pharma position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Albireo Pharma will appreciate offsetting losses from the drop in the long position's value.

Moving together with Albireo Pharma

+0.85KBKB Financial Group Earnings Call TodayPairCorr

Moving against Albireo Pharma

-0.79CVSCVS Health Corp Earnings Call TomorrowPairCorr
The ability to find closely correlated positions to Albireo Pharma could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Albireo Pharma when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Albireo Pharma - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Albireo Pharma to buy it.
The correlation of Albireo Pharma is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Albireo Pharma moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Albireo Pharma moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Albireo Pharma can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Albireo Pharma Piotroski F Score and Albireo Pharma Altman Z Score analysis. Note that the Albireo Pharma information on this page should be used as a complementary analysis to other Albireo Pharma's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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Is Albireo Pharma's industry 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 Albireo Pharma. If investors know Albireo 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 Albireo Pharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
922.9 M
Quarterly Revenue Growth
1.683
Return On Assets
(0.25) 
Return On Equity
(0.93) 
The market value of Albireo Pharma is measured differently than its book value, which is the value of Albireo that is recorded on the company's balance sheet. Investors also form their own opinion of Albireo Pharma's value that differs from its market value or its book value, called intrinsic value, which is Albireo Pharma'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 Albireo Pharma's market value can be influenced by many factors that don't directly affect Albireo Pharma'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 Albireo Pharma's value and its price as these two are different measures arrived at by different means. Investors typically determine Albireo Pharma value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Albireo Pharma'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.