Catalent Beneish M Score

CTLT -  USA Stock  

USD 102.08  0.06  0.06%

This module uses fundamental data of Catalent to approximate the value of its Beneish M Score. Catalent 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. Continue to Catalent Piotroski F Score and Catalent Altman Z Score analysis.

Catalent Beneish M Score 

 
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Catalent Issuance Repayment of Debt Securities is comparatively stable at the moment as compared to the past year. Catalent reported Issuance Repayment of Debt Securities of 113.85 Million in 2021. Long Term Debt to Equity is likely to gain to 0.87 in 2022, whereas Debt Non Current is likely to drop slightly above 3.4 B in 2022. Catalent Cash and Equivalents Turnover is comparatively stable at the moment as compared to the past year. Catalent reported Cash and Equivalents Turnover of 4.97 in 2021. Revenue to Assets is likely to gain to 0.57 in 2022, whereas Cash Flow Per Share is likely to drop 2.03 in 2022.
At this time, it appears that Catalent is an unlikely manipulator. The earnings manipulation may begin if Catalent'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 Catalent 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 Catalent'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.
-2.43
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
0.99
Asset Quality
1.0
Expense Coverage
1.03
Gross Margin Strengs
0.97
Accruals Factor
1.03
Depreciation Resistance
1.27
Net Sales Growth
0.81
Financial Leverage Condition
0.84

Catalent 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 Catalent'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
Revenues3.7 B4.6 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense660.6 M790 M
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations400.3 M497.9 M
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion276.5 M332.4 M
Significantly Down
Increasing
Slightly volatile
Total Assets11.3 B10.5 B
Significantly Up
Increasing
Slightly volatile
Investments63.5 M63.9 M
Slightly Down
Decreasing
Slightly volatile
Investments Current63.5 M63.9 M
Slightly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net3.1 B2.9 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables929.5 M1.2 B
Significantly Down
Increasing
Slightly volatile
Total Liabilities4.9 B5.6 B
Fairly Down
Increasing
Slightly volatile
Current Assets3.6 B3.4 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current5.7 B7.1 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities1.5 B1.4 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current3.9 B4.2 B
Significantly Down
Increasing
Slightly volatile
Total Debt3.5 B3.7 B
Significantly Down
Increasing
Slightly volatile
Debt Current72.9 M86.2 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current3.4 B3.6 B
Significantly Down
Increasing
Slightly volatile
Operating Income801.5 M742.9 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.290.3
Sufficiently Down
Decreasing
Slightly volatile

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

About Catalent 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

276.52 MillionShare
Catalent Depreciation Amortization and Accretion is comparatively stable at the moment as compared to the past year. Catalent reported Depreciation Amortization and Accretion of 332.35 Million in 2021

Catalent 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 Catalent. 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.
201720182019202020212022 (projected)
Revenues2.46 B2.52 B3.09 B4 B4.6 B3.72 B
Total Assets4.53 B6.18 B7.78 B9.11 B10.48 B11.31 B
Current Assets1.24 B1.4 B2.29 B2.92 B3.36 B3.62 B
Assets Non Current3.29 B4.79 B5.48 B6.19 B7.12 B5.72 B
Total Liabilities3.44 B3.9 B4.27 B4.84 B5.56 B4.92 B
Current Liabilities576.9 M670.7 M893 M1.2 B1.38 B1.48 B
Total Debt2.72 B2.96 B3.02 B3.24 B3.73 B3.46 B
Debt Current71.9 M76.5 M73 M75 M86.25 M72.95 M
Debt Non Current2.65 B2.88 B2.94 B3.17 B3.64 B3.39 B
Operating Income268.9 M274 M395 M646 M742.9 M801.55 M

About Catalent Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Catalent's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Catalent using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Catalent 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.
Catalent, Inc., together with its subsidiaries, develops and manufactures solutions for drugs, protein-based biologics, cell and gene therapies, and consumer health products worldwide. Catalent, Inc. was incorporated in 2007 and is headquartered in Somerset, New Jersey. Catalent operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on New York Stock Exchange. It employs 17300 people.

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Our tools can tell you how much better you can do entering a position in Catalent without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Catalent

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 Catalent 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 Catalent will appreciate offsetting losses from the drop in the long position's value.

Catalent Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Catalent and Bausch Health Companies. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Continue to Catalent Piotroski F Score and Catalent Altman Z Score analysis. Note that the Catalent information on this page should be used as a complementary analysis to other Catalent'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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

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