Goosehead Insurance Stock Beneish M Score

GSHD Stock  USD 56.70  0.20  0.35%   
This module uses fundamental data of Goosehead Insurance to approximate the value of its Beneish M Score. Goosehead Insurance 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 Goosehead Insurance Piotroski F Score and Goosehead Insurance Altman Z Score analysis.
For information on how to trade Goosehead Stock refer to our How to Trade Goosehead Stock guide.
  
At present, Goosehead Insurance's Short and Long Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 19.2 M, whereas Net Debt is forecasted to decline to about 83.5 M. At present, Goosehead Insurance's Days Sales Outstanding is projected to increase significantly based on the last few years of reporting. The current year's Book Value Per Share is expected to grow to 2.48, whereas Dividend Yield is forecasted to decline to 0.01.
At this time, it appears that Goosehead Insurance is an unlikely manipulator. The earnings manipulation may begin if Goosehead Insurance'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 Goosehead Insurance 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 Goosehead Insurance'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.
-2.3
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.61

Focus
Asset Quality

1.14

Focus
Expense Coverage

1.05

Focus
Gross Margin Strengs

0.67

Focus
Accruals Factor

1.05

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.5

Focus
Financial Leverage Condition

0.86

Focus

Goosehead Insurance 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 Goosehead Insurance'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
Net Receivables25.7 M31.9 M
Significantly Down
Slightly volatile
Total Revenue130.7 M261.3 M
Way Down
Slightly volatile
Total Assets372.6 M354.9 M
Sufficiently Up
Slightly volatile
Total Current Assets48.5 M74.6 M
Way Down
Slightly volatile
Non Current Assets Total294.3 M280.3 M
Sufficiently Up
Slightly volatile
Property Plant Equipment95.9 M91.3 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization9.7 M9.2 M
Sufficiently Up
Slightly volatile
Selling General Administrative112.5 M214.7 M
Way Down
Slightly volatile
Non Current Liabilities Total312.1 M297.2 M
Sufficiently Up
Slightly volatile
Net Debt83.5 M99.2 M
Fairly Down
Slightly volatile
Short Term Debt19.2 M18.3 M
Sufficiently Up
Slightly volatile
Long Term Debt71.1 M67.6 M
Notably Up
Slightly volatile
Total Cash From Operating Activities27 M50.8 M
Way Down
Slightly volatile
Short Term Investments334.4 K376.2 K
Fairly Down
Slightly volatile
Gross Profit Margin0.280.4159
Way Down
Slightly volatile

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

About Goosehead Insurance 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

9.71 Million

At present, Goosehead Insurance's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Goosehead Insurance 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 Goosehead Insurance. 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)
Net Receivables20.5M38.9M41.7M43.2M31.9M25.7M
Total Revenue77.5M117.0M151.3M209.4M261.3M130.7M
Total Assets64.6M185.8M267.8M321.4M354.9M372.6M
Total Current Assets34.8M63.8M70.3M72.0M74.6M48.5M
Net Debt31.8M94.1M146.4M136.4M99.2M83.5M
Short Term Debt4M6.7M9.3M13.5M18.3M19.2M
Long Term Debt42.2M79.4M118.4M86.7M67.6M71.1M
Operating Income(25.6M)(36.1M)(64.4M)8.3M36.6M38.4M
Investments19K35K(15.4M)(12.6M)(10.3M)(9.8M)
Gross Profit Margin0.460.430.390.360.420.28

About Goosehead Insurance Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Goosehead Insurance's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Goosehead Insurance using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Goosehead Insurance 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 Goosehead Insurance is a strong investment it is important to analyze Goosehead Insurance's 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 Goosehead Insurance's future performance. For an informed investment choice regarding Goosehead Stock, refer to the following important reports:
Check out Goosehead Insurance Piotroski F Score and Goosehead Insurance Altman Z Score analysis.
For information on how to trade Goosehead Stock refer to our How to Trade Goosehead Stock guide.
Note that the Goosehead Insurance information on this page should be used as a complementary analysis to other Goosehead Insurance's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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When running Goosehead Insurance's price analysis, check to measure Goosehead Insurance'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 Goosehead Insurance is operating at the current time. Most of Goosehead Insurance's value examination focuses on studying past and present price action to predict the probability of Goosehead Insurance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Goosehead Insurance's price. Additionally, you may evaluate how the addition of Goosehead Insurance to your portfolios can decrease your overall portfolio volatility.
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Is Goosehead Insurance'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 Goosehead Insurance. If investors know Goosehead 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 Goosehead Insurance 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
5.55
Earnings Share
0.55
Revenue Per Share
10.858
Quarterly Revenue Growth
0.1
Return On Assets
0.0583
The market value of Goosehead Insurance is measured differently than its book value, which is the value of Goosehead that is recorded on the company's balance sheet. Investors also form their own opinion of Goosehead Insurance's value that differs from its market value or its book value, called intrinsic value, which is Goosehead Insurance'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 Goosehead Insurance's market value can be influenced by many factors that don't directly affect Goosehead Insurance'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 Goosehead Insurance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Goosehead Insurance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Goosehead Insurance'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.