Healthcare Beneish M Score

HCSG Stock  USD 10.77  0.07  0.65%   
This module uses fundamental data of Healthcare Services to approximate the value of its Beneish M Score. Healthcare Services 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 Healthcare Services Piotroski F Score and Healthcare Services Altman Z Score analysis.
Healthcare Services Debt to Equity Ratio is most likely to increase slightly in the upcoming years. The last year's value of Debt to Equity Ratio was reported at 0.69. Healthcare Services Receivables Turnover is most likely to slightly decrease in the upcoming years. The last year's value of Receivables Turnover was reported at 5.36. The current Accounts Payable Turnover is estimated to increase to 37.22, while Cash Flow Per Share is forecasted to increase to (0.11).
At this time, it appears that Healthcare Services is a possible manipulator. The earnings manipulation may begin if Healthcare Services' 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 Healthcare Services 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 Healthcare Services' 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.
Beneish M Score - Possible Manipulator
Elasticity of Receivables0.93Focus
Asset Quality1.04Focus
Expense Coverage0.98Focus
Gross Margin Strengs0.96Focus
Accruals Factor0.98Focus
Depreciation Resistance1.04Focus
Net Sales Growth1.07Focus
Financial Leverage Condition0.96Focus

Healthcare Services 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 Healthcare Services' 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 Expense146.2 M140.3 M
Sufficiently Up
Slightly volatile
Revenues1.8 B1.7 B
Notably Up
Slightly volatile
Trade and Non Trade Receivables334.3 M336.8 M
Slightly Down
Slightly volatile
Property Plant and Equipment Net22.3 M23 M
Sufficiently Down
Slightly volatile
Operating Income75.1 M53.5 M
Significantly Up
Pretty Stable
Net Cash Flow from Operations(8.4 M)(8.2 M)
Fairly Down
Very volatile
Liabilities Non Current113 M113.5 M
Slightly Down
Slightly volatile
Current Liabilities173.5 M178.6 M
Fairly Down
Slightly volatile
Total Liabilities286.5 M292.2 M
Fairly Down
Slightly volatile
Investments Non Current36.6 M32.6 M
Moderately Up
Slightly volatile
Investments Current89.9 M95.2 M
Notably Down
Slightly volatile
Investments117.7 M127.8 M
Significantly Down
Slightly volatile
Gross Margin0.110.115
Sufficiently Down
Pretty Stable
Depreciation Amortization and Accretion13.9 M15.3 M
Moderately Down
Slightly volatile
Debt Non Current8.7 M8.1 M
Significantly Up
Slightly volatile
Debt Current22.4 M22.5 M
Slightly Down
Slightly volatile
Total Debt27.4 M33.1 M
Significantly Down
Slightly volatile
Assets Non Current201.8 M209.7 M
Sufficiently Down
Slightly volatile
Current Assets524 M508.6 M
Fairly Up
Slightly volatile
Total Assets725.8 M718.3 M
Fairly Up
Slightly volatile

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

About Healthcare Services 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

13.86 Million

Healthcare Services Depreciation Amortization and Accretion is most likely to increase significantly in the upcoming years. The last year's value of Depreciation Amortization and Accretion was reported at 15.32 Million

Healthcare Services 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 Healthcare Services. 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.
201820192020202120222023 (projected)
Revenues2 B1.84 B1.76 B1.64 B1.69 B1.8 B
Total Assets692.6 M722.59 M785.03 M777.53 M718.33 M725.84 M
Current Assets508.14 M515.73 M572.4 M546.38 M508.63 M524.04 M
Assets Non Current184.47 M206.86 M212.63 M231.15 M209.7 M201.79 M
Total Liabilities251.82 M262.29 M304.57 M324.85 M292.16 M286.47 M
Current Liabilities163.39 M148.65 M162.26 M191.12 M178.62 M173.48 M
Total Debt30 M21.65 M11.36 M11.3 M33.1 M27.44 M
Operating Income97.84 M77.88 M117.21 M53.77 M53.5 M75.06 M
Investments119.41 M137.7 M159.43 M143.66 M127.81 M117.71 M
Investments Current76.36 M90.71 M125.01 M114.4 M95.2 M89.93 M

About Healthcare Services Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Healthcare Services Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Healthcare Services using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Healthcare Services Group 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.
Healthcare Services Group, Inc. provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. Healthcare Services Group, Inc. was incorporated in 1976 and is based in Bensalem, Pennsylvania. Healthcare Svcs operates under Medical Care Facilities classification in the United States and is traded on NASDAQ Exchange. It employs 200 people.

Healthcare Services Investors Sentiment

The influence of Healthcare Services' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Healthcare. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Healthcare Services' public news can be used to forecast risks associated with an investment in Healthcare. The trend in average sentiment can be used to explain how an investor holding Healthcare can time the market purely based on public headlines and social activities around Healthcare Services Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Healthcare Services' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Healthcare Services' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Healthcare Services' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Healthcare Services.
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 Healthcare Services 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, Healthcare Services' short interest history, or implied volatility extrapolated from Healthcare Services options trading.

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Check out Healthcare Services Piotroski F Score and Healthcare Services Altman Z Score analysis. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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