Bandwidth Stock Beneish M Score
BAND Stock | USD 18.26 0.21 1.16% |
Bandwidth | Beneish M Score |
At this time, it appears that Bandwidth is an unlikely manipulator. The earnings manipulation may begin if Bandwidth'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 Bandwidth 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 Bandwidth'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.
-3.72
Beneish M Score - Unlikely Manipulator
Bandwidth 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 Bandwidth'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 Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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Net Receivables | 45.8 M | 78.2 M |
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Total Revenue | 354.2 M | 601.1 M |
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Total Assets | 576.4 M | 1.1 B |
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Total Current Assets | 192.9 M | 248.6 M |
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Non Current Assets Total | 895 M | 852.4 M |
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Property Plant Equipment | 132.5 M | 126.2 M |
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Depreciation And Amortization | 53.6 M | 51 M |
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Selling General Administrative | 67 M | 65.4 M |
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Total Current Liabilities | 75.2 M | 122.8 M |
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Non Current Liabilities Total | 714.9 M | 680.9 M |
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Short Term Debt | 5.2 M | 5.5 M |
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Gross Profit Margin | 0.48 | 0.3635 |
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Bandwidth 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 Bandwidth's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Bandwidth in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Bandwidth's degree of accounting gimmicks and manipulations.
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About Bandwidth 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 |
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Bandwidth 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 Bandwidth. 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.
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Net Receivables | 30.2M | 55.2M | 61.6M | 74.5M | 78.2M | 45.8M | |
Total Revenue | 232.6M | 343.1M | 490.9M | 573.2M | 601.1M | 354.2M | |
Total Assets | 341.4M | 890.6M | 1.1B | 929.3M | 1.1B | 576.4M | |
Total Current Assets | 226.9M | 193.6M | 412.9M | 279.6M | 248.6M | 192.9M | |
Net Debt | (160.3M) | 232.8M | 171.8M | 379.0M | 512.2M | 537.8M | |
Short Term Debt | 4.9M | 5.5M | 5.8M | 7.5M | 5.5M | 5.2M | |
Operating Income | (17.7M) | (13.5M) | (2.2M) | (24.3M) | (35.5M) | (33.7M) | |
Investments | 18.1M | (40M) | 40M | (133.4M) | 73.8M | 77.5M |
About Bandwidth Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Bandwidth's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Bandwidth using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Bandwidth 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.Bandwidth Inc. operates as a cloud-based software-powered communications platform-as-a-service provider in the United States. Bandwidth Inc. was founded in 2000 and is headquartered in Raleigh, North Carolina. Bandwidth operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 1100 people.
Pair Trading with Bandwidth
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 Bandwidth 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 Bandwidth will appreciate offsetting losses from the drop in the long position's value.Moving against Bandwidth Stock
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The ability to find closely correlated positions to Bandwidth could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bandwidth 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 Bandwidth - 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 Bandwidth to buy it.
The correlation of Bandwidth is a statistical measure of how it moves in relation to other instruments. 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 Bandwidth moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bandwidth 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 Bandwidth 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.Check out Bandwidth Piotroski F Score and Bandwidth Altman Z Score analysis. For information on how to trade Bandwidth Stock refer to our How to Trade Bandwidth Stock guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Complementary Tools for Bandwidth Stock analysis
When running Bandwidth's price analysis, check to measure Bandwidth's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bandwidth is operating at the current time. Most of Bandwidth's value examination focuses on studying past and present price action to predict the probability of Bandwidth's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bandwidth's price. Additionally, you may evaluate how the addition of Bandwidth to your portfolios can decrease your overall portfolio volatility.
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Is Bandwidth'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 Bandwidth. If investors know Bandwidth 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 Bandwidth listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.64) | Revenue Per Share 23.469 | Quarterly Revenue Growth 0.054 | Return On Assets (0.02) | Return On Equity (0.06) |
The market value of Bandwidth is measured differently than its book value, which is the value of Bandwidth that is recorded on the company's balance sheet. Investors also form their own opinion of Bandwidth's value that differs from its market value or its book value, called intrinsic value, which is Bandwidth'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 Bandwidth's market value can be influenced by many factors that don't directly affect Bandwidth'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 Bandwidth's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bandwidth is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bandwidth'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.