Equillium Stock Beneish M Score

EQ Stock  USD 1.55  0.01  0.64%   
This module uses fundamental data of Equillium to approximate the value of its Beneish M Score. Equillium 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 Equillium Piotroski F Score and Equillium Altman Z Score analysis.
To learn how to invest in Equillium Stock, please use our How to Invest in Equillium guide.
  
At this time, Equillium's Long Term Debt is relatively stable compared to the past year. As of 05/21/2024, Debt To Equity is likely to grow to 0.04, while Long Term Debt Total is likely to drop slightly above 9.6 M. At this time, Equillium's PTB Ratio is relatively stable compared to the past year. As of 05/21/2024, Invested Capital is likely to grow to 0.04, while Operating Cash Flow Per Share is likely to drop (0.66).
At this time, it appears that Equillium is an unlikely manipulator. The earnings manipulation may begin if Equillium'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 Equillium 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 Equillium'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.
-2.42
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.51

Focus
Asset Quality

0.84

Focus
Expense Coverage

0.72

Focus
Gross Margin Strengs

0.79

Focus
Accruals Factor

0.72

Focus
Depreciation Resistance

1.1

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.79

Focus

Equillium 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 Equillium'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
Total Assets67.5 M50.5 M
Significantly Up
Slightly volatile
Total Current Assets66.9 M49.3 M
Significantly Up
Slightly volatile
Non Current Assets Total698.4 K1.2 M
Way Down
Slightly volatile
Property Plant Equipment1.9 M1.8 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization119.7 K126 K
Notably Down
Slightly volatile
Selling General Administrative10.3 M13.6 M
Way Down
Slightly volatile
Total Current Liabilities29 M27.6 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total364.8 K384 K
Notably Down
Slightly volatile
Short Term Debt418 K440 K
Notably Down
Slightly volatile
Long Term DebtM3.7 M
Way Up
Slightly volatile
Gross Profit Margin0.790.9965
Significantly Down
Slightly volatile

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

About Equillium 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.

Total Assets

67.51 Million

At this time, Equillium's Total Assets are relatively stable compared to the past year.

Equillium 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 Equillium. 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.
201920202021202220232024 (projected)
Total Assets55.5M85.4M85.4M78.4M50.5M67.5M
Total Current Assets55.5M85.4M83.8M77.2M49.3M66.9M
Non Current Assets Total108K254K1.6M1.2M1.2M698.4K
Property Plant Equipment93K239K237K1.6M1.8M1.9M
Depreciation And Amortization23K45K72K46.1M126K119.7K
Selling General Administrative9.1M10.2M11.4M17.2M13.6M10.3M
Total Current Liabilities3.9M7.2M8.9M32.0M27.6M29.0M
Non Current Liabilities Total9.8M8.3M10.0M14.4M384K364.8K
Net Debt(3.5M)(15.7M)(40.4M)(48.9M)(22.4M)(23.5M)
Long Term Debt9.7M8.3M8.8M3.2M3.7M7.0M
Operating Income(26.7M)(29.5M)(37.8M)(62.1M)(14.5M)(15.2M)
Total Cash From Operating Activities(22.9M)(24.6M)(32.1M)(8.7M)(21.8M)(22.9M)
Investments(2.1M)(18.6M)27.5M18.7M7.8M8.2M
Short Term Investments39.9M58.2M30.3M11.9M17.7M22.3M

About Equillium Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Equillium's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Equillium using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Equillium 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 Equillium is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Equillium Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Equillium Stock. Highlighted below are key reports to facilitate an investment decision about Equillium Stock:
Check out Equillium Piotroski F Score and Equillium Altman Z Score analysis.
To learn how to invest in Equillium Stock, please use our How to Invest in Equillium guide.
You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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Is Equillium'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 Equillium. If investors know Equillium 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 Equillium listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.35)
Revenue Per Share
1.085
Quarterly Revenue Growth
0.204
Return On Assets
(0.14)
Return On Equity
(0.48)
The market value of Equillium is measured differently than its book value, which is the value of Equillium that is recorded on the company's balance sheet. Investors also form their own opinion of Equillium's value that differs from its market value or its book value, called intrinsic value, which is Equillium'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 Equillium's market value can be influenced by many factors that don't directly affect Equillium'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 Equillium's value and its price as these two are different measures arrived at by different means. Investors typically determine if Equillium is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Equillium'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.