Denali Beneish M Score

DNLI Stock  USD 31.35  0.18  0.58%   
This module uses fundamental data of Denali Therapeutics to approximate the value of its Beneish M Score. Denali Therapeutics 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 Denali Therapeutics Piotroski F Score and Denali Therapeutics Altman Z Score analysis.
  
Denali Therapeutics Total Debt is decreasing as compared to previous years. The last year's value of Total Debt was reported at 57.61 Million. The current Debt Non Current is estimated to increase to about 54.6 M, while Debt Current is projected to decrease to under 4.9 M. Denali Therapeutics Revenue to Assets are decreasing as compared to previous years. The last year's value of Revenue to Assets was reported at 0.0399. The current Total Assets Per Share is estimated to increase to 13.84, while Return on Investment is projected to decrease to (34.74) .
At this time, it appears that Denali Therapeutics is an unlikely manipulator. The earnings manipulation may begin if Denali Therapeutics' 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 Denali Therapeutics 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 Denali Therapeutics' 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.
-4.17
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset Quality0.35Focus
Expense Coverage1.05Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.05Focus
Depreciation Resistance0.98Focus
Net Sales Growth1.03Focus
Financial Leverage Condition0.99Focus

Denali Therapeutics 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 Denali Therapeutics' 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 Expense98.1 M90.9 M
Significantly Up
Up
Slightly volatile
Revenues44.9 M43.8 M
Fairly Up
Down
Pretty Stable
Property Plant and Equipment Net65.5 M80 M
Significantly Down
Up
Slightly volatile
Operating Income(349.1 M)(340.1 M)
Fairly Down
Down
Slightly volatile
Net Cash Flow from Operations(195.3 M)(190.3 M)
Fairly Down
Down
Pretty Stable
Liabilities Non Current92.7 M73.2 M
Significantly Up
Up
Slightly volatile
Current Liabilities367.3 M340.4 M
Significantly Up
Up
Slightly volatile
Total Liabilities429.1 M397.7 M
Significantly Up
Up
Slightly volatile
Investments Non Current527.9 M489.3 M
Significantly Up
Up
Slightly volatile
Investments Current595.5 M657.7 M
Moderately Down
Up
Slightly volatile
Investments928.2 M1.1 B
Significantly Down
Up
Slightly volatile
Gross Margin0.890.9
Fairly Down
Down
Slightly volatile
Depreciation Amortization and Accretion8.3 M9.9 M
Fairly Down
Up
Slightly volatile
Debt Non Current54.6 M52.7 M
Sufficiently Up
Down
Slightly volatile
Debt Current4.9 M4.9 M
Slightly Down
Down
Slightly volatile
Total Debt58 M57.6 M
Slightly Up
Down
Slightly volatile
Assets Non Current629 M583 M
Significantly Up
Up
Slightly volatile
Current Assets661.3 M807.5 M
Significantly Down
Up
Slightly volatile
Total Assets1.4 B1.3 B
Significantly Up
Up
Slightly volatile

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

About Denali Therapeutics 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

8.28 Million

Denali Therapeutics Depreciation Amortization and Accretion is increasing as compared to previous years. The last year's value of Depreciation Amortization and Accretion was reported at 9.88 Million

Denali Therapeutics 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 Denali Therapeutics. 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)
Total Assets661.98 M553.23 M1.6 B1.4 B1.26 B1.36 B
Current Assets480.84 M430.03 M1.5 B897.23 M807.51 M661.32 M
Assets Non Current181.15 M123.2 M108.62 M506.93 M582.97 M628.99 M
Total Liabilities115.14 M158.34 M453.75 M441.87 M397.68 M429.08 M
Current Liabilities32.79 M45.34 M71.7 M378.25 M340.42 M367.3 M
Investments535.05 M375.79 M995.25 M997.38 M1.15 B928.19 M
Investments Current387.17 M335.91 M962.55 M571.93 M657.72 M595.49 M

About Denali Therapeutics Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Denali Therapeutics's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Denali Therapeutics using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Denali Therapeutics 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.
Denali Therapeutics Inc., a biopharmaceutical company, discovers and develops therapeutic candidates for neurodegenerative diseases in the United States. Denali Therapeutics Inc. was incorporated in 2013 and is headquartered in South San Francisco, California. Denali Therapeutics operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 5 people.

Denali Therapeutics Investors Sentiment

The influence of Denali Therapeutics' 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 Denali. 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 Denali Therapeutics' public news can be used to forecast risks associated with investment in Denali. The trend in average sentiment can be used to explain how an investor holding Denali can time the market purely based on public headlines and social activities around Denali Therapeutics. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Denali Therapeutics' 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 Denali Therapeutics' 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 Denali Therapeutics' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Denali Therapeutics.
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 Denali Therapeutics 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, Denali Therapeutics' short interest history, or implied volatility extrapolated from Denali Therapeutics options trading.

Pair Trading with Denali Therapeutics

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 Denali Therapeutics 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 Denali Therapeutics will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Denali Therapeutics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Denali Therapeutics 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 Denali Therapeutics - 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 Denali Therapeutics to buy it.
The correlation of Denali Therapeutics 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 Denali Therapeutics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Denali Therapeutics 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 Denali Therapeutics 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
Continue to Denali Therapeutics Piotroski F Score and Denali Therapeutics Altman Z Score analysis. You can also try Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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Is Denali Therapeutics' 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 Denali Therapeutics. If investors know Denali 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 Denali Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
4.3 B
Quarterly Revenue Growth
(0.33) 
Return On Assets
(0.15) 
Return On Equity
(0.33) 
The market value of Denali Therapeutics is measured differently than its book value, which is the value of Denali that is recorded on the company's balance sheet. Investors also form their own opinion of Denali Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Denali Therapeutics' 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 Denali Therapeutics' market value can be influenced by many factors that don't directly affect Denali Therapeutics' 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 Denali Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine Denali Therapeutics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Denali Therapeutics' 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.