Four Seasons Education Stock Beneish M Score

FEDU Stock  USD 10.45  0.07  0.67%   
This module uses fundamental data of Four Seasons to approximate the value of its Beneish M Score. Four Seasons 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 Four Seasons Piotroski F Score and Four Seasons Altman Z Score analysis.
  
At this time, Four Seasons' Debt Ratio is comparatively stable compared to the past year. At this time, Four Seasons' Cash Per Share is comparatively stable compared to the past year. Capex To Operating Cash Flow is likely to gain to 3.59 in 2024, whereas Operating Cash Flow Per Share is likely to drop 6.66 in 2024.
At this time, it appears that Four Seasons Education is an unlikely manipulator. The earnings manipulation may begin if Four Seasons' 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 Four Seasons 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 Four Seasons' 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.
-2.99
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.44

Focus
Asset Quality

-0.65

Focus
Expense Coverage

1.4

Focus
Gross Margin Strengs

1.41

Focus
Accruals Factor

1.4

Focus
Depreciation Resistance

1.1

Focus
Net Sales Growth

1.43

Focus
Financial Leverage Condition

-0.0496

Focus

Four Seasons 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 Four Seasons' 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 Receivables16.5 M26.5 M
Way Down
Slightly volatile
Total Revenue178.9 M125.4 M
Significantly Up
Pretty Stable
Total Assets733 M674.2 M
Significantly Up
Slightly volatile
Total Current Assets487 M322.6 M
Way Up
Slightly volatile
Non Current Assets Total246 M351.6 M
Way Down
Slightly volatile
Property Plant Equipment220.3 M209.8 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization4.1 M4.4 M
Notably Down
Slightly volatile
Selling General Administrative88.4 M44.3 M
Way Up
Slightly volatile
Total Current Liabilities146.4 M106.8 M
Significantly Up
Very volatile
Short Term Debt1.1 M1.2 M
Notably Down
Pretty Stable
Gross Profit Margin0.510.3627
Significantly Up
Slightly volatile

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

About Four Seasons 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

733 Million

At this time, Four Seasons' Total Assets are comparatively stable compared to the past year.

Four Seasons ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Four Seasons' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Four Seasons' managers, analysts, and investors.
Environmental
Governance
Social

About Four Seasons Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Four Seasons Education's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Four Seasons using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Four Seasons Education 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.

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked. Macroaxis thematic optimization helps investors identify companies most likely to benefit from changes or shifts in various micro-economic or local macro-level trends. Originating optimal thematic portfolios involves aligning investors' personal views, ideas, and beliefs with their actual investments.
Explore Investing Ideas  

Additional Tools for Four Stock Analysis

When running Four Seasons' price analysis, check to measure Four Seasons' 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 Four Seasons is operating at the current time. Most of Four Seasons' value examination focuses on studying past and present price action to predict the probability of Four Seasons' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Four Seasons' price. Additionally, you may evaluate how the addition of Four Seasons to your portfolios can decrease your overall portfolio volatility.