Esperion Therapeutics Stock Beneish M Score

ESPR Stock  USD 2.68  0.06  2.29%   
This module uses fundamental data of Esperion Therapeutics to approximate the value of its Beneish M Score. Esperion 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. Check out Esperion Therapeutics Piotroski F Score and Esperion Therapeutics Altman Z Score analysis.
To learn how to invest in Esperion Stock, please use our How to Invest in Esperion Therapeutics guide.
  
At this time, Esperion Therapeutics' Total Debt To Capitalization is relatively stable compared to the past year. As of 03/28/2024, Debt Ratio is likely to grow to 2.74, though Debt Equity Ratio is likely to grow to (1.12). At this time, Esperion Therapeutics' Operating Cycle is relatively stable compared to the past year. As of 03/28/2024, Price Earnings To Growth Ratio is likely to grow to 0.03, while Price Earnings Ratio is likely to drop (1.55).
At this time, it appears that Esperion Therapeutics is an unlikely manipulator. The earnings manipulation may begin if Esperion 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 Esperion 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 Esperion 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.
-3.61
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.7

Focus
Asset Quality

0.47

Focus
Expense Coverage

0.55

Focus
Gross Margin Strengs

0.73

Focus
Accruals Factor

0.55

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.95

Focus
Financial Leverage Condition

1.19

Focus

Esperion 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 Esperion 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
Net Receivables32.3 M48.5 M
Way Down
Slightly volatile
Total Assets181.9 M205.8 M
Fairly Down
Slightly volatile
Total Current Assets160.4 M201.1 M
Significantly Down
Slightly volatile
Non Current Assets Total4.5 M4.7 M
Notably Down
Very volatile
Property Plant Equipment179.2 K188.6 K
Notably Down
Pretty Stable
Selling General Administrative63.6 M121.2 M
Way Down
Slightly volatile
Total Current Liabilities164 M156.2 M
Sufficiently Up
Slightly volatile
Short Term Debt38.2 M36.4 M
Sufficiently Up
Slightly volatile

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

About Esperion 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 And Amortization

155,800

At this time, Esperion Therapeutics' Depreciation And Amortization is relatively stable compared to the past year.

About Esperion Therapeutics Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Esperion Therapeutics's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Esperion Therapeutics using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Esperion 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.
Esperion Therapeutics, Inc., a pharmaceutical company, develops and commercializes medicines for the treatment of patients with elevated low density lipoprotein cholesterol. Esperion Therapeutics, Inc. was incorporated in 2008 and is headquartered in Ann Arbor, Michigan. Esperion Theraptc operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on NASDAQ Exchange. It employs 218 people.
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 Esperion 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, Esperion Therapeutics' short interest history, or implied volatility extrapolated from Esperion Therapeutics options trading.

Pair Trading with Esperion 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 Esperion 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 Esperion Therapeutics will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Esperion 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 Esperion 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 Esperion 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 Esperion Therapeutics to buy it.
The correlation of Esperion Therapeutics 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 Esperion Therapeutics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Esperion 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 Esperion 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
When determining whether Esperion Therapeutics is a strong investment it is important to analyze Esperion Therapeutics' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Esperion Therapeutics' future performance. For an informed investment choice regarding Esperion Stock, refer to the following important reports:
Check out Esperion Therapeutics Piotroski F Score and Esperion Therapeutics Altman Z Score analysis.
To learn how to invest in Esperion Stock, please use our How to Invest in Esperion Therapeutics guide.
You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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Is Esperion 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 Esperion Therapeutics. If investors know Esperion 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 Esperion Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(2.03)
Revenue Per Share
1.128
Quarterly Revenue Growth
0.714
Return On Assets
(0.43)
Return On Equity
(2.61)
The market value of Esperion Therapeutics is measured differently than its book value, which is the value of Esperion that is recorded on the company's balance sheet. Investors also form their own opinion of Esperion Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Esperion 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 Esperion Therapeutics' market value can be influenced by many factors that don't directly affect Esperion 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 Esperion Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Esperion Therapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Esperion 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.