Fathom Digital Manufacturing Stock Beneish M Score

FATH Stock  USD 4.50  0.01  0.22%   
This module uses fundamental data of Fathom Digital to approximate the value of its Beneish M Score. Fathom Digital 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 Fathom Digital Piotroski F Score and Fathom Digital Altman Z Score analysis.
  
As of now, Fathom Digital's Debt Current is increasing as compared to previous years. The Fathom Digital's current Issuance Repayment of Debt Securities is estimated to increase to about 5.7 M, while Total Debt is projected to decrease to under 167.5 M. As of now, Fathom Digital's Debt to Equity Ratio is increasing as compared to previous years. The Fathom Digital's current Gross Margin is estimated to increase to 0.33, while EBITDA Margin is projected to decrease to (3.37).
At this time, it appears that Fathom Digital Manuf is an unlikely manipulator. The earnings manipulation may begin if Fathom Digital'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 Fathom Digital 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 Fathom Digital'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.
-12.41
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.81

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.14

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.83

Focus
Net Sales Growth

1.08

Focus
Financial Leverage Condition

0.69

Focus

Fathom Digital 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 Fathom Digital'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
Selling General and Administrative Expense61.9 M57.3 M
Significantly Up
Slightly volatile
Revenues199.9 M185.3 M
Significantly Up
Slightly volatile
Trade and Non Trade Receivables28.7 M32.9 M
Fairly Down
Very volatile
Property Plant and Equipment Net57 M69.3 M
Significantly Down
Slightly volatile
Net Cash Flow from Operations3.5 M3.5 M
Slightly Down
Slightly volatile
Liabilities Non Current175.9 M184.5 M
Sufficiently Down
Slightly volatile
Current Liabilities60.6 M76 M
Significantly Down
Pretty Stable
Total Liabilities236.5 M260.5 M
Moderately Down
Slightly volatile
Gross Margin0.330.29
Fairly Up
Slightly volatile
Depreciation Amortization and Accretion32.2 M29.9 M
Significantly Up
Slightly volatile
Debt Non Current128.9 M144.2 M
Moderately Down
Very volatile
Debt Current56 M51.9 M
Significantly Up
Slightly volatile
Total Debt167.5 M196.1 M
Fairly Down
Very volatile
Assets Non Current488.6 M358.6 M
Significantly Up
Slightly volatile
Current Assets59.3 M67.5 M
Fairly Down
Pretty Stable
Total Assets547.9 M426.1 M
Significantly Up
Slightly volatile

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

About Fathom Digital 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

32.21 Million

As of now, Fathom Digital's Depreciation Amortization and Accretion is increasing as compared to previous years.

About Fathom Digital Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Fathom Digital Manufacturing's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Fathom Digital using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Fathom Digital Manufacturing 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.
Fathom Digital Manufacturing Corporation, a digital manufacturing platform, provides product development and manufacturing services in North America. The company was founded in 1984 and is headquartered in Hartland, Wisconsin. Fathom Digital operates under Computer Hardware classification in the United States and is traded on New York Stock Exchange. It employs 706 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 Fathom Digital 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, Fathom Digital's short interest history, or implied volatility extrapolated from Fathom Digital options trading.

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When determining whether Fathom Digital Manuf offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Fathom Digital's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Fathom Digital Manufacturing Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Fathom Digital Manufacturing Stock:
Check out Fathom Digital Piotroski F Score and Fathom Digital Altman Z Score analysis.
You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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When running Fathom Digital's price analysis, check to measure Fathom Digital'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 Fathom Digital is operating at the current time. Most of Fathom Digital's value examination focuses on studying past and present price action to predict the probability of Fathom Digital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fathom Digital's price. Additionally, you may evaluate how the addition of Fathom Digital to your portfolios can decrease your overall portfolio volatility.
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Is Fathom Digital'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 Fathom Digital. If investors know Fathom 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 Fathom Digital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.89)
Earnings Share
(17.56)
Revenue Per Share
40.998
Quarterly Revenue Growth
(0.22)
Return On Assets
(0.02)
The market value of Fathom Digital Manuf is measured differently than its book value, which is the value of Fathom that is recorded on the company's balance sheet. Investors also form their own opinion of Fathom Digital's value that differs from its market value or its book value, called intrinsic value, which is Fathom Digital'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 Fathom Digital's market value can be influenced by many factors that don't directly affect Fathom Digital'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 Fathom Digital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fathom Digital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fathom Digital'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.